Before deciding who to work with, it’s important to do a lot of research and buy a mortgage. Large banks exist strongly but are generally very sluggish and most consumers do not have a mortgage option. If you are a first-time buyer who needs a little extra help or an empty nest who wants to reach a new chapter in life, a local lender is a good choice. The Washington Mortgage company tends to offer better deals and much more personal attention.
1. Personal experience
With local lenders, you can meet professionals in person and eliminate many uncertainties and anxieties. With a local lender, avoid the dreaded customer service line with a team of voice-activated computers and leave messages unanswered in your voice mailbox for weeks. Instead, there are mobile numbers that you can call or send text messages at any time.
Are you confused about pre-approval, loan type, or next steps? Book to explain everything and talk directly with an expert who can point you in the right direction. The online experience cannot be compared to the first-class care you receive from your local lender.
2. Lots of knowledge
Local lenders know your local market better than anyone else. This means they have a better understanding of asset value and the local economy. If you work with a smaller local lender, you will get a team of licensed lending officers and professionals who are local experts in the area where you shop. They help you choose the right loan for your situation, keep giving you directions, and ensure that every step is done with care and attention.
Most local lenders even have the tools and resources needed to facilitate a loan, ensuring that everything is fixed promptly. Even if you are an experienced buyer, the local market has advantages. No matter how many times you go through the process, you can get frustrated.
Local lenders understand that customers are as unique as fingerprints and try to find a solution that works for everyone. They go one step further to guarantee their customers the success of their mortgages.
3. Relationship with a real estate agent
Most local lenders spend a lot of time and effort building strong relationships with realtors in all the regions they serve. This is especially useful when closing a transaction. The Philadelphia real estate market is currently bright red and buyers need to move as soon as they find a property they like. Best mortgage lenders often have a long time, so you can contact them in the evenings and weekends. If you find a home you like on Sunday, you can contact your loan officer for approval on the same day. With everyone (realtors, borrowers, buyers) working closely together, closures can be done promptly with local lawyers and agents. The last step in the home-buying process is the most stressful, and human interaction makes the process go smoothly.
4. Lower rates and rates
Boutique mortgage lenders offer the same range of products as major banks but are usually much cheaper. Mortgage rates and closing costs vary by the borrower, but smaller lenders often become more competitive by offering more attractive interest rates. Lower interest rates can save thousands of dollars over the life of a 30-year mortgage, and lower interest rates lead to fewer upfront costs.
Large lenders need to process a large number of loan applications efficiently. Strict guidelines are required to do this. Small lenders, on the other hand, often have very simple guidelines that allow them to approve mortgages that large banks cannot afford.
In many cases, certifying a lender is a matter of time and effort. Large lenders tend to look for unconventional loans because it takes a lot of effort to properly identify such lenders. But for small borrowers, this may be exactly the type of niche they are experiencing.
Main Photo by Rowan Heuvel.