Support Small Business? How About in Your Real Estate Transaction?

By
Mortgage and Lending with Homebridge Financial Services NMLS 210215

The Small Business Saturday promotion is a great one that's going on today.  Your local small business is run by your neighbors, family and friends.  They spend their profits and wages in your local economy.  They employ your neighbors, who spend their pay in your local economy.  Oftentimes, they support local charities that help make your community.

Did you know you can support small business in your real estate transaction too?  Choose a local lender instead of one of the big national banks, or that on-line lender that looks so tempting.  In addition to the benefits of using small business above, using a local mortgage lender makes sense for other reasons, as well.

First, due to their smaller size, they will find it necassary to offer superior service as a way to attract business.  In this day and age of the big banks missing closing date after closing date, it's nice to have that stress removed from an already stressful transaction.  Also, if you have service issues, with a smaller lender, you can reach somebody who matters and who cares about your transaction.  This can mean all the difference in getting your transaction done.

Second, the smaller mortgage lenders tend to have a more experienced staff.  This experience can pay off in helping you find your way through the maze of requirements and regulations that have been added to the mortgage lending process in the last few years.

Third, the smaller mortgage lender will have to be competitive price-wise.  They may not have the absolute lowest rock-bottom price, but the quicker closing times will help you avoid expensive "lock-in" extension fee's, or expensive longer term "lock-in" periods.  This can ulitmately result in a lower rate and lower fee's in the transaction.

Fourth, the smaller lender may have more options than the larger lenders.  For example, our firm offers the products from a number of large banks and other lenders.  A borrower who may not qualify at one bank, may qualify at another.  Save yourself the hassle, time and cost of another appraisal by working with the smaller mortgage lender.

The entire economy will benefit if we make a concsious decision to check with the locally owned, small business first... including your locally owned mortgage lender.  

Comments (2)

Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Brett - I agree completely - the worst thing we could hear from a buyer is "we found a great loan deal on the internet". It's been our experience that this will not end well, particularly since we're a table-funding state and the money has to be there at closing or the buyer is in default (at least technically, but still..). We have never had an internet loan deal go smoothly, and I don't believe that we even know any other agent who would claim differently. Our advice to our buyers is that if they need to dial an 800 number to talk to their lender, they're playing with fire. And the big national banks, even though they have local branches, aren't much better. Our preferred local lender is available to our clients on weekends and evenings, she delivers what she says she can, and we know where she lives, even though we have never, in over 5 years, even thought of sending Big Louie over to visit her.

 

Nov 26, 2011 06:39 AM
Sharon Paxson
Compass - Newport Beach, CA
Newport Beach Real Estate

Hi Brett - this is a very good post and you are right about a local lender.

Nov 26, 2011 09:44 AM