The Importance of Working with a Local Lender



    It’s an interesting market out there right now, where buyers are missing out on houses and the whole process of getting to closing is more challenging than ever. Here is a little insight on why working with a local lender makes a lot of sense for both buyers and sellers.


    Trustworthy Pre-approval

    Working with a local lender that knows the area is very important, especially for the pre-approval process. They can ensure it’s a valid pre-approval where all the necessary documents are collected upfront. Also, when agents in the area see the pre-approval from a local lender, they know it’s valid. It will increase your chances as a buyer of having your offer accepted.

    Todd Buckley, Listing Agent: “I can tell you this from personal experience. If we have multiple offers come in on a property and the listing agent knows that lender, that buyer has a much greater likelihood of having their offer accepted if all other things are equal.”


    Accurate Appraisal

    Working with a local lender means you’re also going to be working with an appraiser who knows the area as well. While the lender doesn’t choose the appraiser directly, you are guaranteed to get someone local from their appraiser panel, increasing the likelihood of an accurate appraisal.


    Understands Local Lending Options and Programs

    There are different loan programs specific to the area you are buying in. In our area we have a Rural Development loan, which is a great mortgage, especially for first time home buyers. Lenders local to this area will know the RD loan inside and out, and will be able to most simply and accurately guide you through the loan process.


    Competitive Rates, Better Experience

    These days you may see and hear a lot of commercials for those 1-800 mortgage type companies, who promise fast mortgages or low interest rates. We’ve found that those experiences are not nearly as positive as people might expect versus working with someone who is local. Local lenders are actually going to be very competitive with interest rates and fees. Generally the process will even run more smoothly and get you to the closing quicker. Often times with local lenders, you will have a dedicated team available directly to you from start to finish, cutting out a lot of hassle.

    Todd Buckley, Listing Agent: “I think it’s really important that the lender is a person in the community. If something is not on track, I want to be able to go down and talk to that person face-to-face because it’s a team effort to get to the finish line of the closing.”


    Have questions on mortgages or any other steps in the home buying process? Give us a call or comment below!

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