Using a local company has many benefits when buying a home. Don’t get caught up with the idea that an internet company can give you a better deal. When using a local company you are using people who live and work in the area. They are part of the community. This means that they understand the local market better. They are also more capable of approving a loan.
Local lenders have a reputation in the community and are going to do their level best to ensure that their reputation remains positive. This means that they will work harder. It also means that they will be easier to get in touch with. Using a local lender will aid in getting your purchase to close on time with fewer hiccups.
A local lender will also know local appraisers, an internet company is not going to have a relationship with local appraisers or home inspectors. They will often times offer assistance in credit repair in order to help you get a better loan in a few months rather than an okay loan right now. Doing a job well is imperative to local lenders and underwriters. They have relationships with the agents, title companies, appraisers, home inspectors, and other essential services in the area.
There may be issues that arise during the time between contract and closing, having a team of local people who work together on a regular basis can mean the difference between closing on time and getting your loan restructured or denied three days before closing. You won’t know until you’re into it if you’re going to have a difficult time closing or not. Difficult closings can be infinitely easier with a good local mortgage company and almost impossible with an internet company. There will be lots of communication between the agents, appraisers, home inspectors, contractors, and loan companies. These communications go much smoother when you can call, text, or pop by an office to make sure things are going smoothly.
I have said many times that pre-approval is key, who does the approving is just as important. The Realtor needs to have a relationship with the loan originator to ensure a faster, smoother, and more pleasant experience getting you to the closing table.