Use a Local Lender With Local Knowledge and Local Experience

Reblogger Celeste "SALLY" Cheeseman
Real Estate Agent with Liberty Homes RS-#62825

An ongoing thought regarding local lenders!  Same goes for local agents and so forth.  So often, we'll get a buyer who refuses to go with anyone but USAA. So often, they fall out of contract because their mainland lender DOES NOT know our local laws and real estate contracts NOR the area and what's going on with real estate in our LOCAL AREA

Good topic Jeff!

Original content by Jeff Pearl

I just talked with someone this morning. They had wanted to buy a lot in Pine Grove / Bluemont which is in Western Loudoun maybe 15-20 minutes West of Purcellville VA. They have their plans to build a new home on the lot and had estimate from builder. Total cost for lot, well, septic, and new construction of house, and related items like driveway, power, etc. came to $258,000.00. It's not easy to buy a lot and build in Loudoun county for $258,000.00, but it can be done. So it was hard to believe when their " lender" came back and said they couldn't lend them the money because the completed project would not appraise for $258,000.00.

 I didn't even have to look in the MLS to know that doesn't make a bit of sense, and that the completed projected would easily appraise for over $300,000.00. I don't know why they chose this lender? Maybe it was a friend or it was through their employment and/or had something to do with a relo. They aren't my clients, I just happen to run into them, and one thing led to another and real estate entered the conversation. I can't remember the name of the lender, ( never heard of them) but they told me they were located in Georgia.

 Why would someone wanting to buy land and build in Virginia, use a lender in Georgia? I suggested that maybe they should check with a few local banks while they were in town, like Cardinal Bank, Middleburg Bank, Bank of Clarke county, Sun Trust, etc all of which are within 20 minutes of Pine Grove and all have long history of local experience, and know their local market, and are familiar with constuction to perm loans.


   Local Lender         VS       Non Local Lender


Jeff Pearl / Lic in VA

Remax Distinctive - Reston VA


Homes / Land / Farms / Historic

Equal Housing Opportunity Provider



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Lenn Harley
Lenn Harley,, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Sally.  They're going with USAA because of the USAA buyer rebate.

I just offer to match the rebate.  About half of them go with us. 

May 17, 2013 02:32 AM #1
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Sally, no kidding!  I haven't used anything but a local bank in a long time.  Going local is the only way.

May 17, 2013 02:36 AM #2
Bob Ratliff
Robert Ratliff Realty - San Antonio, TX
"Sold with Bob"

Hello Sally, I agree local Lenders/Banks would better serve a Buyers needs and I think these other state Lenders don't know the true values and use XYZ to form an appraised value which is incorrect most of the time. Always us local lenders is my motto.

May 17, 2013 10:08 PM #3
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Great choice for a reblog, Sally. I would have otherwise missed this one.

Jun 10, 2013 06:40 PM #4
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Celeste "SALLY" Cheeseman

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