Profile picture for UhhCanJenGo

Closing with an online/non-local lender?

First-time home buyer here, so you'll have to excuse my naivety.  The title pretty much sums it up: if i decide to go with an online lender or one that isn't local--say, National Bank of Kansas City who seems to be pretty well regarded--how does closing work exactly?  Meaning, in my head, I imagine the closing process at some point involves actually interacting with a living human being, no?
  • April 13 2014 - Columbus
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Answers (6)

The closing works the same regardless if the lender is based locally or on the other side of the nation. Technology has made it where the only person you need to physically come in contact with is the notary or attorney doing the closing. Everything else can be handled by phone, email, fax and mail. I'm based in Southern California and have closed hundred of transactions, without any delays, out of the area/nationally throughout my career.

  • October 09 2014
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Most lenders will send a notary right to your kitchen table for closing on your loan. The guidelines on lending have become so harsh that you are well protected when it comes to non local lenders.
  • October 08 2014
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The closing process does not change with a local lender or an online lender.  Your escrow/title company will handle the paperwork and you will meet with them to do your signings.  What does change is most local lenders are very familiar with customary proceedings of your local market where online lenders are trying to use the same process regardless of whether you are in NJ, CA or OH.  This often causes problems and delays.  Sometimes it goes smoothly, sometimes not.

As others have mentioned, I have experienced most of my closing on time problems when dealing with lenders who do not have local processors and underwriters.  They simply treat every file the same regardless of local customs or laws. They do not read the purchase contract, they only look at the closing date.  Get ready to ask for extension.
  • April 13 2014
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Profile picture for John Steeby
Over the last 18 years, the experience my clients have had with online lenders has not been good.  Too often the terms get changed and you're not dealing with someone who is explaining the process one on one. You're getting reams of text.

READ your Truth-In-Lending Statement  (Check out the APR - Annual Percentage Rate...it's the true cost of your loan)

READ your Good Faith Estimate

My feeling about a local lender is if my client needs to yell at someone, they are local and convenient.

Best of luck.

  • April 13 2014
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Since it's your first time buying make sure you are comparing APR and not just interest rate. Also get a good expectations of closing. If underwriting is not easily accessible to the lender if could slow down the process. Like mentioned the closing will be conducted by title so you shouldn't have an issue there. Good luck and if you have any questions let us know.
  • April 13 2014
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Hi!  What normally happens is the seller chooses the title company.  It has nothing to do with your lender.  Your lender sends all of the closing documents to the seller's title company and the closing takes place at the title company.  You should speak to your real estate agent...they will explain everything to you.  Sorry they haven't already :(
  • April 13 2014
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