The process of buying a home is accompanied by a long list of choices, some more enjoyable than others. Even though it may not be as exciting as choosing your dream home, the lender you select can have a surprisingly significant impact on your home buying process.
What are your options?
- National, big bank lenders
- Small-scale, local lenders
Hands down, a local lender is your best option. Here’s why:
Your loan will be treated as a priority.
National lenders don’t necessarily need you or your favorable word of mouth marketing to stay afloat. Since national lenders have so many clients, it’s not a big deal if some fall through the cracks. Local lenders depend on the satisfaction of the local clientele for their very sustenance, so it is in their best interest to treat your loan as it should be treated. Just one unhappy customer can have a hugely negative impact for a local lender, and they would not be in business if they didn’t treat every client as a priority.
Local lenders respect deadlines.
National companies are notorious for not getting your appraisal back in a timely fashion. Since you are just another number to national lenders, it’s much more likely that your file will get lost in the “big corp.” shuffle. Local lenders are not slammed with appraisals from all over the country, so they have the capacity to respect deadlines.
You can actually speak to your loan officer.
Loan officers from local lenders are actual human beings, not voice-activated computers. If any situation calls for the assurance of human-to-human contact, it is certainly the process of buying a home. With local lenders, you will have a phone number that you can call or text as needed in order to find answers for your home financing questions.
There is enough stress involved in buying a home, especially for first-time homebuyers. Despite everything in our daily lives becoming increasingly automated, nothing can replace old-fashioned customer service. This is especially applicable for a process as intimate and emotional as purchasing a home.
Local loan officers understand your market.
Local loan officers live where you live, which means that they personally know the appraisers and underwriters. They make use of their network to get the deal closed.
A local lender also appears more attractive to home sellers and real estate agents because they are associated with a smooth process. In a bidding war, having a trusted, local lender could be the difference between moving into your dream house or settling for second best. Certain sellers may not even consider offers from national banks or online lenders because of either bad memories or reputations. In a market as competitive as Las Vegas, working with a trusted local lender has a similar level of importance as getting pre-approved.
Local lenders give you options
Local lenders have a wider variety of loan products and options than national lenders, so they can offer you a package that is adapted to your unique situation in order to better meet your needs.
Less Expensive
Local lenders are known for offering lower interest rates and less transaction fees than national lenders.
In Conclusion
Supporting local lenders isn’t only beneficial for your local economy. The overall service is undoubtedly superior, you will be more likely to land your dream home, and you’ll have fond memories of the buying process.