Shopping For A Mortgage? Think Locally.

The last time you bought a home (and used a Realtor of course) in Phoenix, Arizona, did your Realtor live and work in Detroit, Michigan?

Probably not.

So why do so many people use a mortgage professional that they never meet face to face?

Probably because it is possible that you can get all of the paperwork done through the phone, email and fax machine — but it doesn’t mean that it is the best way to ensure that you get the right mortgage for your needs in the most efficient way possible.

Here are 4 reasons why using a local mortgage professional makes a lot of sense rather than using a mortgage professional who lives 2,000 miles away:

Your local lender has a local reputation to protect.

When you buy a home, there can be up to five parties involved — buyer, buyer’s Realtor, seller, seller’s Realtor and Escrow Officer.  A local mortgage professional knows that by doing a great job and delivering great service he potentially has a handful of future clients judging him on service and is more inclined to take pride in making sure that you have the best loan possible.  A local mortgage professional usually makes his living from referrals from these people and as a result is highly motivated to do his best work each and every time.

Your local lender can be a great resource for local information.

Local lenders can be another resource for local information in addition to your Realtor.  Great local lenders can serve as a “back up” for anything that you might normally ask your Realtor about.  Local sports information, school information, shopping information, etc — it is always a good idea to get more than one person’s opinion on “Where is the best place to ___________?” when a neighborhood is new to you.

Your local lender has the same access to capital that “the big guys” do.

By and large, the local mortgage professional who only works in Twin Falls, Idaho, has access to the same rates and programs as the big-time national mortgage guy who says that he can lend in 50 states.

Your local lender has local connections with other professionals you can use.

When you work with a local mortgage professional, you get instant access to their network of other local professionals.  All great mortgage professionals know who the best Realtors, CPAs, lawyers, insurance professionals, financial planners are in town, and they are happy to introduce you.  These professionals make up their local ecosystem and like attracts like… good loan officers work with other good professionals on a regular basis.

One trick to finding a great local lender?  Ask.  Ask your Realtor, ask Google, ask your friends, ask the Relocation Company that you are working with — just start asking.  And as always, make sure you not only ask, but also compare to win!

September 23, 2008