Online lenders and discount mortgage lenders may sound like a great way to go on the surface. Many offer no obligations, no up-front costs, and advertise low rates. But once you start digging a little deeper, there are more than a few reasons you should consider working with a local lender.
Work with someone with local experience.
The market on the Mid Peninsula is very different than anywhere else in the world, and it's even quite different than other parts of the Bay Area. Offers with zero contingencies, rapid escrow periods, large down payments, and earnest money deposits are common. When there's so much at stake, it's imperative to partner with a lender that "gets it" and isn't going to let you fall on your face.
Present a stronger offer.
Working with a local lender helps put a seller (and their agent) at ease. It can definitely help if they see your preapproval letter with a name they recognize or maybe even worked with in the past. The last thing someone selling real estate wants to do is take chances. By working with a local lender you're giving them one less thing to worry about.
Feel more comfortable and confident.
If something doesn't seem right or if you have questions and want to talk, you can always meet face to face with your lender. The contract you have with your lender can be an inch thick, so it's good to have someone that can walk you through it in person and make sure it all adds up.
Deal with less unknowns.
If you work with a lender your realtor, a friend, or a family member has recommended, the odds are you'll be in good hands and are less likely to encounter problems that could prevent you from closing escrow. The last thing you want is to have an offer accepted and get excited about it only to have your lender not be able to perform, causing you to lose the house.
If you are thinking about buying a home and would like to get the ball rolling, feel free to send me an email and I'll put you in touch with one of the lenders I work with.