So, you’re ready to move and buy that dream home you’ve been looking for. If you’ve already found a great realtor, your next step is to work with a lender to get financing approval and make an offer. But with the real estate market as competitive as it is, it’s important to have a trusted Chester mortgage advisor that can guide you through the offer process, making sure your offer is most likely to be accepted.
Working with a national or online lender might be something you’re considering, but it isn’t always the best solution. In this competitive market, a local lender can give you a leg up over the big banks or corporations with their geographically-specific knowledge, relationships, and insights.
Here are some things to consider when choosing a local lender:
Relationships matter
A reputable local lender has likely spent ample time building relationships with local realtors. These relationships can help bolster your offer and provide the credibility a seller’s agent is looking for when evaluating multiple offers. If the selling agent recognizes or knows the local lender that you’re using, they can feel more comfortable knowing you’ve been qualified with your offer versus using an unknown or national banking entity that might have different loan requirements. In tight markets where inventory is tight, these relationships with a Chester mortgage advisor can be crucial to winning a bidding war.
Aside from realtor relationships, using a local lender allows you to build a lasting relationship with your mortgage company. This can benefit you if you have questions after closing, or when you buy a home the next time around. At Penn Street Mortgage, we are here to build relationships with our clients long after closing, providing them trusted advice for years to come.
Knowledge of local regulations and rules
Each locality and state has specific rules and regulations that dictate real estate and lending laws. Certain types of loans like FHA or VA loans have guidelines that can differ from state to state. A local lender will be familiar with the specifics of your particular locality and can guide you through the transaction with the appropriate loan for you, and the type of property you’re buying. Otherwise, you might submit an offer that is invalid or inappropriate for the market. National lenders who are unfamiliar with the nuances of your geographic market might not be aware of the best loan options or laws related to your state.
Additionally, having an understanding of your local market will allow your lender to advise you on home values and the economics of the local economy. This first-hand knowledge of the local market can be helpful when approving mortgages or shopping around for the best rates.
Open and direct communication
By using a local lender, you’ll have a direct and open line of communication with a trusted loan officer that can answer your questions or walk you through the process. Whether you’re a first-time homebuyer or a seasoned buyer, navigating today’s competitive market requires over-communication from you, your realtor, and your lender. If you’re in a bidding war with other clients, being able to move fast and contact your lender quickly is crucial. By having your local lender’s direct number, you’ll be able to pick up the phone and get directly in touch instead of having to go through a generic customer support number. This type of open communication can make or break a deal when time is of the essence.
Best available rates
One of the benefits of using a local lender is the ability to consider multiple lending products, allowing you to find the best available rate. Local mortgage advisors in Chester like Penn Street Mortgage are skilled at offering a variety of different loans for their clients — something that larger, national banks are not always able to do.
National banks have different underwriting procedures and tactics, limiting the flexibility they have to approve clients or offer different rates. This gives you more options to consider while getting a local’s perspective on the market. With more options, you will potentially be able to save money and ensure you’re picking the right mortgage for you, your budget, and your lifestyle.
Speed and efficiency
When the real estate market is as competitive as it is today, speed and efficiency are key to winning an offer and securing your dream home. A local lender is able to move fast and prioritize your application, ensuring additional steps like the appraisal can get done swiftly and seamlessly. Often larger national banks, take on more clients, meaning you can be one of the hundreds of applicants your loan officer is working with. Online or national lenders might not be able to navigate the local market you’re as quick as a local lender, and you might see decreased customer service because of their caseload.
In order to keep up with the technology of national lenders, most local lenders have adapted to also offer in-house tools and platforms that can help expedite a loan, making sure that every detail is accounted for. Things like online document uploads and eSignature platforms allow you to do business with your local lender virtually, just like you would with a national bank. This offers an added level of convenience that you don’t have to sacrifice by working with a local lender.
Additionally, a local lender can often offer a faster closing time since you’re dealing with a local team that is handling cases. Your offer can fall through fast if your lender is unable to close on time or if there are delays.
Ultimately, a local lender is able to provide a unique and personalized approach to buying a home, something that can be extremely valuable in this competitive market. While larger banks might still be a good option for you, in a competitive market, having a local lender can greatly benefit you in the process. Contact Penn Street Mortgage, your trusted Chester mortgage advisor, today to get pre-approved and understand what makes us different!
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