10 Reasons to Use A Local Lender
1. Two Words: Local. Lender.
When problems arise (and they will), what will you do when you call and keep getting sent to voice mail? With a local lender, you can go to their office and look them in the eye.
2. Power to Negotiate! When a seller sees a pre-approval letter from a local lender they recognize, they have confidence that they too can stand eye to eye with the lender if necessary. If there are multiple offers, the seller will be less likely to consider an offer from a buyer with a pre-approval from an online lender.
3. Save Money! Using an online lender, or lender from out of town could result in increased costs from servicers such as the closing title agency (whose agent drives down from somewhere else), and appraisers. These increased costs will be passed on to you, the consumer.
4. More Accurate Appraisal. Due to “mortgage reform”, all lenders are required to use an AMC, that is, an Appraisal Management Company. The lender has to contact the AMC to order the appraisal and in turn, the AMC contacts an appraiser who is on his “approved” list. Typically, these appraisers come from Evansville, Louisville or Madisonville. Just like I could not begin to know all the quirks of the market in Evansville or Louisville, they too are challenged. This may result in a not so accurate appraisal.
5. Better Communication. Because your lender is local, other service providers such as your REALTOR, appraiser and title company will be local as well. These working relationships result in easier communication between the parties and a smoother transaction.
6. Delayed closing. Online lenders typically hire title companies from larger cities to close their transactions. This means the representative for the title company will have to drive here to conduct the closing and get the buyers and sellers signatures. These representatives never seem to arrive on time for the closing – usually at least a ½ hour late. Recently, we had one who arrived late and then discovered he did not have the deed. Apparently, their office did not have email because he had to drive back to his office and get the deed, then return here about 8:00 p.m. for everyone to sign the deed. Ugh.
7. Listing Agents LOVE local lenders! Listing agents represent the seller. When I, as a listing agent receive an offer that has a pre-approval letter from an online or out of town lender, I cringe. It is my duty to inform the seller of the likelihood of that buyer making it to the closing table. My past experience with online and out of town lenders has not been positive. If my seller received two offers: one with an approval from a local lender, and one with an approval from an online lender, we would go with the offer from the buyer with the local lender.
8. Voicemail. Did I mention getting lost in the sea of “press one” and “press two”’s. Your local lender is a real person who gives their personal attention to your file daily. When you call, you will not be given to the “next available representative”, but speak with the same people on your lender’s team every time.
9. Relationships. Because your local lender cares about getting future business from your referrals; as well as future business from your REALTOR, they are more likely to work overtime, or make those extra phone calls that are sometimes necessary to pull things together. Online lenders don’t care if they ever do another loan in Owensboro, Ky. To them, we are just tadpoles in an ocean full of fish. Just a number - and there are plenty more where we come from.
10. Choose a Local Lender You can Trust. There are many types of loans available: FHA, VA, Conventional, Kentucky Housing. Not all lenders offer the same products, and some lenders are more skilled at processing government loans than others. After 29 years in the business, I can point you to the best lender to process your loan. Give me a call and I will arrange a confidential meeting with a local lender you can trust in Owensboro, KY. 270-903-2167
10 Reasons to Use A Local Lender