You’re interested in buying a home, researched the process online, and still have questions. Does this sound familiar? Whether you’re new to the home buying experience or have cycled through a home or two in the past, you likely have questions or would appreciate guidance. While the convenience of an online lender might sound appealing (we get it, browsing the web in your jammies is nice), there are several reasons why working with a local financial institution is wiser.
If you're wondering how the entire process of buying a home works, read our Complete Guide to Homebuying on a Budget. This invaluable resource offers everything you need to know about buying a home, from setting your budget to move-in day.
1. Upfront, accurate information.
Online mortgage lenders’ low rates and willingness to approve applicants with questionable credit is attractive. However, a low rate could mean hidden fees later in the process, and just because you’re approved for a mortgage loan doesn’t mean you can afford one. With a local lender, you’re sitting across the desk from an actual person, so you can verify that all rates and fees are disclosed. Though local lenders are more selective about approvals, they will offer advice and tools to help you get approved quickly.
Not only does a local lender know your individual market better, they also have connections in the area that can help make things more affordable (such as realtors or inspectors).
2. Local connections.
When working with an online lender, you don’t know where they’re located. Not only does a local lender know your individual market better, they also have connections in the area that can help make things more affordable (such as realtors or inspectors). Also, local lenders are often involved in neighborhood events and local charities; it’s always nice to support an institution that gives back to your community.
Read our complete Guide to Homebuying on a Budget!
3. Personalized service.
Another benefit of working with a local lender is their ability to see your overall financial picture. Want to buy a larger house but you’re unsure of the monthly payments? A mortgage originator can look at refinancing other loans to free up more money each month or look for better, more affordable options.
4. Special offers.
Not only can a local mortgage lender offer guidance on your specific financial situation, they may even be able to give you special discounts or rates that you can’t get online. The flashy, too-good-to-be-true offers that are sometimes found online may contain complicated disclosures that are difficult to understand. Working with a local financial institution ensures that you enter into a mortgage that’s suited to your needs. Sitting face-to-face with your mortgage lender means you can ask as many questions as you like and receive immediate answers. It really doesn’t get much better than that when you’re getting ready to make one of the biggest purchases of your life.
If you’re in the market for a mortgage loan, Member One’s knowledgeable associates can help steer you down the path to a new home. Contact our team of mortgage experts today to see what options are available to you.
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Check out this list of six less common features to consider while house hunting, courtesy of Member One’s mortgage experts.
If you’re in the market to buy, there’s no reason NOT to get a realtor, but you’ll want a buyer’s agent. A buyer’s agent works for you and doesn’t cost you a thing—the seller pays them.
An escrow account is used to set aside money for annual property taxes and homeowners insurance. Your mortgage lender manages this account on your behalf.