It is very important to always use a local Lender for VA Loans and FHA Loans in Vancouver, WA and Portland, OR. Every VA and FHA borrower has the right to utilize any VA and FHA Lender that is licensed in that state but there is some risk which I will explain.
Purchasing a home with your VA benefits or FHA loan in Vancouver, WA and Portland, OR is the biggest purchase of your lifetime. It is extremely important that you work with a local professional who thoroughly understands and is educated on the market. It is very difficult for out of state Lenders to fully understand the details of the VA and FHA market in an area they do not reside. In Vancouver, WA and Portland, OR local Lenders understand the VA and FHA market because they have established relationships with local Realtors and local Escrow Companies that provide them with up to date information. Out of state Lenders without those relationships do not have access too this information. While an out of state Lender is capable of closing a VA Loan or FHA loan for you, a local VA and FHA Lender offers expertise that someone out of state most likely does not possess.
Out of state Lenders not only effect you as a VA or FHA borrower but they also effect a purchase transaction in its entirety. Every transaction has the same questions asked buy all parties involved that include the Seller of the property, the listing Agent, the selling Agent, the Escrow Company. When you are conducting a VA loan or FHA loan in Vancouver, WA or Portland, OR and all entities involved are local except for a Lender who is out of state these questions arise;
Who is this Lender?
Where did you hear about them?
Do you know anyone who has used them before now?
Are they easy to get in touch with?
Can you talk to a person directly?
Do they have any recommendations in our area?
When these questions start to be asked by Realtors the seller usually wants some reassurance that the buyer of their home is working with a reputable company. Normally this will include the seller requiring that you get pre-approved with a locally known Lender. Reputation is hard to prove when you are out of state and no one has heard of the Lender, seen the Lender or has ever spoke to anyone who has worked with them in past. There is more to a VA Loan or FHA Loan than just getting it closed. Not every VA Loan or FHA Loan is cut and dry. VA Loans and FHA Loans are not easy to close and require experience to be done correctly. Local Lenders will be known by other Realtors and Escrow Companies and they will be able to verify their experience level.
Issues pop up on every VA Loan or FHA Loan that can potentially end up in a denial. A Lender must have the internal fortitude to work through these problems and not give up because of frustration. A Lender who you have been able to look at eye to eye and establish a personal face to face relationship with will normally not give up on you. Wheras a Lender whom you have never met and have only spoken on the phone with will find it much easier to end a transaction if the VA Loan or FHA Loan shows some difficulty. Today the Lending market is very rigid which means that Lenders must work twice as hard to close a VA Loan or FHA Loan. This is why working with a local Lender is so important because creating that personal relationship usually ensures stronger loyalty and representation. Having a local Lender where you and your Realtor and Escrow Company can go to their office to pick up and drop off important paperwork and talk too in person makes a huge difference to everyone's comfort level. Especially with the individual you are purchasing your home from in Vancouver, WA and Portland, OR.
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