Securing financing is one of the most vital pieces of the home buying process, and you will find numerous mortgage lenders offering competitive rates in today’s market. But, if you want personalized support and service that caters to your individual needs, selecting a local lender may be your best bet.
From convenience to personalized advice, here are four reasons why you should work with a local lender:
You’ll get more personalized service.
When you work with a large bank or online lender, you’re just another number. But when you work with a local lender, they’ll get to know you and your needs. They’ll be invested in helping you find the right home and getting you the best loan possible.
In addition, having a face-to-face relationship with the lender provides the comfort of dealing with someone you know and trust to guide you through the home buying journey.
They have in-depth knowledge of the local market.
Local lenders know the ins and outs of the market in your area. Having an understanding of local trends like housing prices, the costs of living in your area, and the general economy makes a huge difference when making such an important decision.
Local lenders and underwriters will likely be more familiar with your state or city's home buying process and real estate laws.
You may qualify for special discount programs.
Local lenders often have access to programs that can make it easier for first-time buyers or those with less-than-perfect credit to qualify for a loan. These programs vary from state to state, so working with a local lender is the best way to find out what might be available to you.
To view current programs available to you, visit our home loans page or connect with a local lender to learn more.
Buy local, borrow local, and support the community.
Buying local and borrowing from a local lender is an excellent way to help the community. Not only does it stimulate economic growth by keeping money circulating within your city, but it also helps support small businesses and charitable initiatives in the area. When it comes time to purchase a home, consider buying local and borrowing local from a lender who has been serving your area for years.
If you're looking to buy a home, working with a local lender is a great option. Local lenders have a better understanding of the market in your area and can provide more personalized service to your specific needs. Our lenders and underwriters have been serving this community for years, and are ready to assist you in getting into your dream home. To meet or schedule an appointment with one of Texas Tech Credit Union's mortgage lenders, visit our home loans page.
FAQs
Local lenders have a much better understanding of the local market, are able to make decisions locally, offer personalized service, and typically have access to a variety of loan options. Learn more about DCCU mortgage options here.
What is a local lender? ›
Local mortgage lenders finance properties in a specific geographic location and often provide more personalized service, but may have limited loan options. When choosing a lender, consider factors such as customer service, the type of loan you need and interest rates.
Why is it important for lenders to have a firm grasp of a borrower's financial qualifications? ›
Most real estate is purchased with borrowed money, though the methods of finance vary. Making real estate loans carries a certain amount of risk for lenders; for this reason, lenders must have a firm grasp of a borrower's financial qualifications.
Should you get a local mortgage broker? ›
Because, at the end of the day, a local Mortgage Broker can help you make intelligent decisions with information you may not be able to obtain elsewhere. Understanding local trends is particularly important for investment property loans, where the investment loan application process is just the beginning.
How to answer the question why do you want to work in a bank? ›
Sample Answer:
The banking industry is lucrative and plays an important role in our economy. It offers challenging roles and opportunities to develop skills and knowledge. The dynamic nature of the industry and its relevance in the economic scenario is why I want to pursue a career in the banking sector.
Why do lenders look at where you work? ›
Lenders may ask for an applicant's job title to verify employment and confirm a stated salary. It's also used to verify identity and, in some cases, is used as a factor to predict default risk. If a lender asks for your job title, it likely won't sway their decision as much as your credit history and credit score.
What are the 4 C's of lending? ›
Standards may differ from lender to lender, but there are four core components — the four C's — that lenders will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.
What are the five C's of credit? ›
Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.
What is the best reason to say when applying for a loan? ›
What is the best reason to give when applying for a personal loan? The best reason is exactly what you plan on using the loan for. Lying to your lender could lead to legal trouble.
Do local lenders have better mortgage rates? ›
The benefits of selecting a local lender are many. After you apply, the loan underwriting tends to be a lot quicker. That is because they have a deep understanding of the markets they serve and use this information to help you. Plus, local lenders tend to offer better rates as well as other types of financial services.
A mortgage broker is offered loans on a wholesale basis from lenders, and therefore can offer the best rates available in the market, typically making the total loan cost lower for the client. A reputable mortgage broker will disclose how they are paid for their services, as well as detail the total costs for the loan.
Does a mortgage broker need to be local? ›
Some insist that a broker must be licensed in the province where they arrange financing, while others are more flexible. However, this flexibility can have implications, as some lenders explicitly reject applications from brokers outside their provincial jurisdiction.
Why is it important to have a good lender? ›
Reputable lenders are more likely to offer competitive interest rates, flexible loan terms, and excellent customer service.
What is the benefit of a lender? ›
The benefits of being a lender include earning interest on the loaned amount, while the risks include the possibility of default by the borrower. The benefits of being a lender include generating income, while the risks include credit risk, which is the most significant risk for credit institutions.
Why do builders want you to use their lender? ›
Many builders offer incentives, such as cash to cover closing costs or nicer home features, in exchange for you choosing their preferred lender. You'll have a higher chance of approval. It benefits builders to partner with mortgage lenders that are likely to approve buyers who have all types of credit profiles.
Why is banking locally important? ›
Banking Benefits
Local banks often come with lower fees for establishing accounts and faster processing for bigger purchases. Larger banks will often charge more and take longer. Perhaps most importantly, working with a local bank and, accordingly, local residents, means having easier access to financial education.
