4 Reasons to Use a Local Mortgage Lender

Something the recent pandemic taught us is the importance of supporting local businesses. However, shopping locally isn’t just about choosing a retail shop or restaurant, it also applies to picking a mortgage lender. Whether you are purchasing your first home or downsizing/upgrading your existing home, the first step in homebuying is getting pre-approved for a mortgage. While the ease, convenience, and promise of a quick “pre-approval” through national online lenders may sound appealing, there are many reasons to consider a local lender.

1. Reliability– Everyone involved in the process (seller, realtors, YOU) wants the loan to close on time. Getting your pre-approval with a local lender means the lender has verified your credit, income, employment, and other factors to ensure you qualify for a purchase. When you obtain a pre-approval letter from a local lender, it shows real estate agents and sellers you are a serious and credible buyer – an advantage in this competitive market. Don’t confuse a local lender’s pre-approval letter with many online lenders’ quick pre-qualification promises that rely on your word without verification. The last thing anyone wants is to be denied after you have a purchase contract.

2. Reputation – Ask any local realtor, attorney, or title company; they’ll tell you the same thing – go with a local lender. Local lenders are incentivized to provide excellent service throughout the mortgage process as their reputation and livelihood are at stake. Word of mouth is a powerful resource and lenders who work and live in your community understand that the service you receive will be shared with your friends and relatives: the good and the bad. On the other hand, many online national lenders are good at high pressure, dangling the carrot of a quick “pre-qualification” and lower rates that they make up for with higher closing costs. Since they don’t have a local reputation to worry about, online lenders are more apt to make promises that they may not be able to keep.

3. Personal Service– Your local lender is available in person, by phone and email throughout the mortgage process. A local lender also knows the local housing market and has relationships with reputable realtors, attorneys, and other professionals within your community who can assist with the process. An online lender won’t meet with you in person, and you will likely experience long delays in communication. Additionally, online lenders tend to disappear after closing since they have no professional ties in your community.

4. Commitment to Community– As with any local business, money spent in our community stays in our community. Local financial institutions support their communities in many ways, including donations, sponsoring events, and providing educational resources for schools and community centers. As your neighbors, local lenders are living, working, and investing in the betterment of your local communities.

Ultimately, working with a local lender is the best option for financing your future home. If you are thinking about homeownership, ready to start searching for the perfect home, or want to know more about the mortgage process, please feel free to contact me!

Diana D. Davidson
Mortgage Lender
NMLS No. 746408

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Opinions expressed are solely my own and do not express the views or opinions of Stillman Bank.