WANT TO PURCHASE A HOME? WHO ARE YOU GONNA CALL? (Ghost busters?!)
It is a technology world….BUT this is the LARGEST transaction of your life!
Find out the differences between LOCAL lenders, big bank /internet / tv/ radio lenders, and some things to consider before you make your choice.
BENEFITS OF USING A LOCAL LENDER
- Face to face meetings or all online whichever you prefer – the last thing you want is to feel like you can not talk to a human face-to-face.
- Their reputation matters….they live and work in your community
- You’re a person not a number
- More lenient if you’re not the typical cookie cutter borrower – self employed borrower, not perfect credit etc.
- More likely to take the time to look at your bill payment history of your cellphone, utility companies, rent and other alternate forms of verification.
- Local lenders like us at Homebridge have access to all the major loan programs. Whether you want a conventional loan, FHA loan, USDA, customized or specialized financing, VA loan, first time home buyers, condo loans, jumbo loans, construction loans etc.
- Personalized service and care – local lenders care deeply about becoming a client’s trusted home loan specialist and take great pride in delivering exceptional service. Visit my Facebook business page or Zillow profile to read my reviews.
- Involved in your community – provide community education classes or are involved in giving back to the community in which they live
- They do not have the marketing dollars that the large conglomerate companies have, rather they depend on referrals
- Local area expertise- local lenders have their finger on the pulse of the areas in which they serve. They know the market like the back of their hand.
- Local lenders have a LOCAL BUYING TEAM – have experience in your market, probably know your realtors, title, homeowner’s insurance, home inspectors personally, and could even have had an experience with the seller involved in the transaction as well. Can take a ton of guesswork and legwork out of the equation for you
- Local lenders are a virtual encyclopedia of information on local realtors, title companies and neighborhoods and often have very specific knowledge of home prices and financial data that others may not.
- High level of communication – local lenders communicate in whichever method you prefer – via call, e-mail, text or in-person meetings, also in some cases even after normal business hours.
- Local lenders have more knowledge on the area and can make local recommendations for local business, maintenance repairs, home inspectors, mechanics, pet sitters, veterinarians, preschools, schools etc.
- Local lenders like those at Homebridge average of closed loans were home purchases. Why is that important? It shows that we are not a refinance center that doesn’t understand the ins and outs of a purchase transaction. Today many lenders transitioned from heavy refinance market and to learning the purchase market. But not us! We have been fully focused on understanding the local purchase market. Navigating through a purchase process takes experience from loan officers who understand the market. If you are a buyer, it is rare that you will hear a Realtor recommendation like, “you know, I had this great internet or call center lender you need to call.” They MAY have a lower rate, but it typically comes at a cost. That cost may be high and includes missing out on results such as:
- On-time closing
- Clear communication
- Matching the loan product to the buyer scenario
- They are aware of community down payment assistance programs
- One phone call/text or email away – sometimes questions cannot be answered by google, and it’s best to speak to a person in your transaction without going through all the hubbub of operators, 1-800s, secretaries etc.
- There are Times that sellers prefer local lenders and have been known to reject offers with pre-approvals from out of town lenders
BIG BANKS/ Internet/Call Center/ TV Lender
- You may end talking to a different person each time you call
- You may feel like a number in a huge stack of files
- In most cases, the transaction is on THEIR timeline
- Usually more refinances than purchases, not having much knowledge in the purchase market
- Built a solid reputation over the years and probably aren’t going anywhere
- Such well-oiled machine with lots of money, you’ll reap the benefits of convenience and support – you’ll most likely get a 1-800 number to call on nights and weekends when you have a question, and there will be loads of loan officers ready to help you.
- You’ll be able to do everything online, from your application to account management
- National brands may also be able to offer something you can’t get elsewhere – mortgage exclusive for its members, hardship assistance, first time homeowners award, lowered fees and competitive rates
- They are BIG; therefore, they may not bend over backward to attend to your every need. They don’t really “know” you.
- Most likely will not have one loan officer who works with you through the whole process – reminds you to send in your paperwork, follows up with you on the status, fights for you if problems arise.
- National companies tend to be better if the borrower has a standard profile for a conventional loan– typically a job with a steady salary and a w2, that you’ve been at for a while, and a good credit score.
HOW TO CHOOSE
- Check reviews – NOT COMPANY reviews, INDIVIDUAL lender reviews
- Interview a few lenders and/or ask for recommendations from friends/family, your agent, homeowners insurance agent, or title agent
- Does the lender return calls/emails and respond in a reasonable amount of time?
- Will you talk to the same Loan Officer throughout the entire process?
Key Advantages of using a Local Lender:
Buying a home is not something to take lightly, typically it is the largest transaction of your lifetime. Choose a lender that you feel will represent your best interest!
If you’re a home buyer, it’s important to keep your local resources close at hand. By keeping your agent, lender, homeowners insurance, title, home inspector, in a tight network, you’re keeping not only your sale and business in your local community but essentially warehousing their knowledge and expertise for your own benefit, you have a LOCAL HOME BUYING TEAM at your finger tips! Each party has a monetary stake in your transaction.
If the borrowers LOCAL HOME BUYING TEAM are not all on the same page, many times borrowers will not close on time, if that happens, there could be sever consequences. Examples include rate lock extension costs, seller backing out, wrecked moving plans, and more. Additionally, verbal and written communication is key to keeping all parties updated throughout the purchase process. Good or bad, my borrower will always understand the details and status of the purchase. Furthermore, I strongly believe in providing answers to our buyer’s questions and providing education about things a buyer may not think about. If a buyer has a clear understanding of their options, the process, and the products their stress level will decrease significantly.
Finally, I believe in matching the correct products to the buyer’s scenarios and goals. There is a thorough discussion with the buyer that starts with the application and prequalification stage. This discovery phase leads to a mortgage plan that provides the buyer and the buyer’s agent total confidence in the proposed strategy. Every buyer faces different challenges, and no loan is the same. Therefore, a smart buyer will choose a lender that caters to their unique circumstances.
If you think about it, why wouldn’t most providers in the purchase process be local resources? Choosing a closing attorney outside the buyer’s market creates challenges. Plus, local insurance agents understand the risks and opportunities for insuring a property properly. Local home inspectors and appraisers are key as well. Your local lender knows the local providers and has experience working with them to ensure the highest level of performance.
Don’t take my word for it — read this real life scenario from a realtor about why she believes in using local lenders https://www.carimcgee.com/use-local-lender/1041/
As a future home buyer, you’re on your way to being better prepared for getting a mortgage and buying your first or next home. Don’t take chances. Do your research and ask lots of questions. When you work with a LOCAL HOME BUYING REAM of agents, lender, insurance agent, home inspector with solid understanding of real estate & mortgage processes, your chance of success is greater. Feel free to contact me for any recommendations or for a free consultation. My goal is to provide you with information that will help you in your decision making process.
Danielle Desousa, Mortgage Loan Originator
Homebridge Financial Services, Inc.
50 Leanni Way Unit E3
Palm Coast, FL 32137
THE HOMEBRIDGE VISION:
To make the dream of homeownership a reality for every customer, every day.
No Cash When Applying for a Mortgage: https://ddesousa.com/no-cash-when-applying-for-a-mortgage/
Closing Costs: https://ddesousa.com/closing-costs-what-are-they/
Credit & Buying a Home: https://ddesousa.com/credit-and-buying-a-home/
First Time Home Buyers: How to Purchase Part 1: https://ddesousa.com/part-1-first-time-home-buyers-florida/
Pet Friendly Lender / Free Pet Adoptions: https://ddesousa.com/why-pet-friendly-lender/