PREFERRED LENDERS

The market is hot, and you're ready to buy. The first step is getting approved on your loan.

Below are five reasons why you should consider choosing a local lender when shopping for a home.

1. Reliability

Everyone involved in the process, sellers, real estate agents, and you, the buyer, want the loan to close on time. Local lenders have a better reputation for closing loans on a timely basis.

2. Reputation, reputation, reputation

Local lenders and real estate agents have an incentive to provide you with excellent service because they want you to be a source of referrals for future business.

3. Personal service

You can meet your lender face to face and ask questions in person if need be; it is more effective for getting on the same page.

4. Local expertise

Besides knowing the area and local real estate market, a local lender will appear more attractive to certain home sellers and real estate agents because of the importance of a timely closing and a smooth process. Some sellers and real estate agents may not even consider offers from national banks or online lenders because of previous bad experiences, or because of the bad reputation some of these have.

5. Buy local, borrow local, help the local community

Most people are aware of the effect which buying locally produced goods or spending money on locally owned businesses has. The money recirculates within the community creating a positive effect. The same is true with using a local lender. Very likely the money you pay to a local lender will be loaned out to other local home buyers and businesses down the line.