13 Oct Why It’s Best To Work With A Local Lender
Today, I’m turning things over to my colleague and guest blogger, Leah Jackson, Loan Originator and Residential Mortgage Lender for Amerifinancial Home Mortgage, Inc.
She discusses why it’s best to work with a local lender.
One of the biggest perks is that a local Realtor will likely have good relationships with local lenders. Because brokerages are local, they have built a reputation within their community solely based on their success and expertise, not just their marketing to clients.
Many rely on the referrals of Realtors who have used them before and know that the process will be smooth for their clients, which is not always the case with larger national companies.
Many choose to work with a local brokerage because of the customer service. Unlike some of the larger mortgage companies out there that will move your file from person to person, a local brokerage will have you working with one Loan Originator the entire time, so they know every step of the process.
For my clients, it is common that clients receive my cell number and have access to me after hours and on weekends if they have questions, which is rare with larger companies and banks.
Depth of Knowledge
There are many ways that depth of knowledge is greater for brokerages than other mortgage options. Firstly is the local aspect. Because people who work at brokerages live and work in the area, they understand the market more intimately. Similarly to the perks of working with a local real estate agent, working with a local lender allows for better support and advice when looking at mortgage options.
Secondly, lending laws differ by state. Having a professional who knows the minute details about lending where you are purchasing can mean the difference between closing and not closing. For example, I have worked with a client that lost their desired house on the day of closing when working with a large lender before working with me because the company that was headquartered in California..
Here in Illinois, funding for the property is required to be released on that day of closing. In California, there is a three day cooling off period after closing. Because of this, the funding with the company was never received so that deal died at the closing table. This simple knowledge that was lost in translation likely would not have happened if they used a local lender.
A final thing to consider is that federal law requires that all Mortgage Originators who work at brokerages be fully licensed and complete yearly continuing education. This guarantees that each Originator is responsible for being an expert for the client.
History of Success
If you choose to work with a local lender, I would advise you to find one that has been around for a while. In our industry, it is common for lots of brokerages to “pop up” when the market is hot with people looking to make a quick buck. These brokerages, however, do not have the years of experience, industry knowledge, or expertise that is often needed in real estate transactions.
Brokerages historically have a strong track record of success, so find one that is reputable, community based, and is able to support you through the process.
It is a common misconception that, given the personal service and specialization of brokerages, they are more expensive. This is not true and, in fact, it is usually the opposite. Most brokerages do not charge any fees that larger companies and banks do, such as an application fee or service fee, which will save the borrower money up front. Brokerages also work with wholesale lenders, meaning their rates almost always beat out larger companies and banks, which saves the borrower money over the life of their loan.
Leah Jackson is a Loan Originator and Residential Mortgage Lender for Amerifinancial Home Mortgage, Inc. She has a demonstrated history of successful closings in Conventional and FHA loans.