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It doesn’t matter if you’re a first-time buyer or have gone through the process multiple times; buying a home can be overwhelming. One of the biggest steps you have to take is finding a lender. There are a lot of options when it comes to who you work with. Big banks and lenders with household names are commonly used but there are many benefits to working with a local loan officer.

Buying a home is a considerable investment, so you want everything to go smoothly. Choosing the right lender is essential as it can mean a big difference in monthly payment as well as the amount of stress you have during the process.

Opting for a local mortgage lender rather than a big national bank can sometimes make all the difference. Whether you need help with the lending process or want to refinance, working with a local mortgage lender tends to be a more personal experience. They can provide a sense of security that your money is in trustworthy hands.

Options When Shopping for a Mortgage

There are many reasons why you should consider working with a local mortgage lender. Before we get into that, let’s go what is available to you.

When shopping for a mortgage, you have a few options.

Big Banks

Using significant lenders in the banking sector is one of the most typical methods of obtaining a mortgage. These are well-known institutions that are available worldwide.

Big banks usually have the ability to negotiate rates and access to more lenders that can offer you a better deal. A lower interest rate can mean lower monthly payments. If this is your primary focus, a big bank could be worth looking into or at least getting a quote from.

>> AGENT ANSWERS: Should I use a big bank or local home loan officer?

The downside of working with a big bank is that they often aren’t able to offer their clients the attention they may need. Since they are a big business, they have a lot of clients and a lot of contact points. Your representative may be hard to get in touch with or unavailable to answer questions.

Keep this in mind if you decide to go with a big bank.

Local Banks

Many local and regional banks provide mortgages. However, they are limited to a particular service area. These smaller lenders can oftentimes offer competitive rates. In addition to good rates, they usually have the ability to be more one-on-one with their clients.

Local banks are part of the community and many loan officers know their clients or have the ability to get to know them. They can offer a more personal touch. So if you can find a local bank that has great rates you may have found the perfect situation for borrowing.

Credit Unions

Credit unions are mortgage lenders that can often times offer loans with lower rates and fewer fees than big banks. But there are some stipulations.

Getting approved for a personal home loan at a credit union might be a challenge. You’ll need to meet the criteria to become a member of the financial institution and also qualify for a loan.

Independent Mortgage Institutions

Independent mortgage institutions are not linked with a bank. However, they are famous for their thorough regulatory oversight and responsible lending practices.

Affiliated Mortgage Companies

These are mortgage firms with a bank affiliation operating under different names. For instance, PrimeLending is a mortgage lender affiliate of PlainsCapital Bank.

Online Lenders

Online mortgage lenders typically have lower overhead costs, translating to more affordable loans. However, with no accurate location, human interaction can be challenging. Check out Better.com. It is an example of an online mortgage lender.

Benefits of Choosing a Local Loan Officer

With the different mortgage lenders illustrated above, I know what you are thinking. You are asking yourself, does your mortgage lender have to be local? Yes! Trust me. It is worth it. Keep reading to know why a local mortgage lender is a good choice.

1. Personalized Experience

Working with a local mortgage lender helps you work with an expert face-to-face, clearing your confusion and anxiety. With local mortgage lenders, you do not wait weeks for someone to answer your message. Instead, you have a direct link with the lender.

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The best part. A local mortgage lender wants to use you as a source of referrals for future business, so they ensure to give you the best service possible. In addition, they have a stake in ensuring that every loan closes as quickly and smoothly as possible.

2. Knows the Local Market

A local mortgage lender has a better understanding of local market conditions. They are familiar with the areas in which they operate. Consequently, they are aware of the prevailing trends and can use this information to assist buyers in getting mortgages.

Local lenders also better understand the lending risks in the area and are more aware of the state of the local economy. For example, a part of the city that appears to a large lender to be in disrepair is a growing neighborhood where property values are rising. Local lenders will know this, thereby creating more opportunities for you.

3. Reliability

Local mortgage lenders can be more trustworthy than bigger lending institutions. A local mortgage lender is committed to making your goal a reality. To ensure the process is running successfully, they check in with each team member they work closely with every day. As a result, local lenders have a stronger track record of timely loan closings. Additionally, they are involved at every stage to ensure the home-buying process is less stressful.

4. Connected with Reputable Local Realtors

Local mortgage lenders place a lot of emphasis on building solid relationships with local Realtors. Realtors and lenders are essential to the real estate industry. A local mortgage Lender is mostly in good working collaborations with most of the real estate agents in their local areas.

Many local loan officers have flexible working hours, allowing borrowers and Realtors to contact them whenever needed. This means that if you find a house you love during the weekend, chances are high that you can reach your loan officer and get quick approval.

Chose What is Right For You

In addition, having a Realtor and a lender working together can result in a swift and hassle-free closing. The concluding phase of home buying can be stressful. But with a unified team that is familiar and comfortable with each other, the process can be accelerated and easy.

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• Source: https://www.fastexpert.com/blog/working-with-local-loan-officer/