Monday, November 6, 2017

5 Reasons Why Working With A Local Bank Can Be Better When Applying For A Mortgage



I work at a local bank, right in Corporate, and my office is just a couple of doors down from the VP. This has lots of advantages for my clients but I wanted highlight the top ones for you, this could help you when deciding to work with a local lender.

1. Knowledge Of Local Products
Mortgage lenders have access to many different products but there are certain products that are specific to Virginia, like the Virginia Housing Development Authority. The VHDA helps homeowners with things like downpayment assistance but there are certain things that an applicant must have in order to qualify. A lot of the time big banks don't process their loans locally, instead they send them to corporate where the staff might not be well versed on loans geared towards residents of Virginia. This means that they might not know how to properly qualify someone for something like VHDA.

2. Local Processors
We've mentioned that big banks sometimes send their loan processing elsewhere but how does that impact someone when shopping with a local lender? As an experienced loan officer in Virginia, I have direct contact with my loan processors so if there are any issues with paperwork or if I see something off about the paperwork, the situation can be rectified quickly. Access to a loan processor can not only help us push an application through quickly but also allows us to catch any errors before they become major issues.

3. One On One Time
Some people feel comfortable with email, phone and even text conversations but there are others that prefer putting a face with whoever is helping them with their mortgage. Most people might buy a home once in a lifetime, and it is comforting to know that someone is there to walk you through the process.

4. Familiarity With Business Partners
Local lenders tend to become familiar with different Realtors, Contractors, Insurance Companies, etc. This can be used as a referral network and a resource center. Need to buy new insurance? We probably have an excellent person for you! What about a home inspector? We tend to know those too.   In some instances we have clients calling us well after their purchase is complete because they are looking for a reference such a cleaning company or maybe a good painter.

5. Keeping Up To Date with Changes In The Industry
This goes back to some of the previous points we deal with local mortgage products often so we're very well aware if there is any changes in policies. This makes the process go much smoother for our clients and in some instances it saves them time and money. Knowing all the requisites, timelines and changes can make sure that we're processing a loan the most efficient way possible.

At the end of the day there are pro's and con's to working with a local bank vs. a large nationwide one. You should pick whatever is more comfortable to you but it is nice to have someone close by that you can easily get in touch with if needed, this is especially true if it's your first time buying a home.

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