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Choosing the right real estate property, house or new home in a housing development or community

You’re ready to buy a home. Congratulations!

You’ve got an idea of what you want and where you want to live, but what about who you’re going to pay your mortgage to for the next 15-30 years? When thinking about a mortgage lender, you need to decide what is right for you. We’ll go through some of the amenities of a big bank vs local lender. Let’s get started!

Big Banks

Besides being around a long time, having the money and backing to invest in top-notch security to protect your personal information, and ways to get ahold of someone all hours of the day and night, big banks can offer you exclusive offers you might not get anywhere else. It could be benefits for first-time homeowners, hardship assistance, lower underwriting fees, and competitive rates. The speed of the loan might improve because larger banks usually have underwriters in their office. 

While these things sound great, there are still downsides. If you’re looking for that warm, fuzzy feeling of everyone knowing you, you will probably have to look elsewhere. Big banks are able to offer many great benefits because they do a large volume of business – which means you are one of their thousands of customers. If your profile isn’t standard (steady income and good credit score), it could be harder for you to get a loan or good rates. Big banks typically look at your data without knowing you as a person or customer. 

Local Lenders

The best part of using a local lender is you get a personal touch! They know you, your family, your goals. They also see you in the community at local events. Local lenders care about future business with you, so they will treat you like a person instead of a number. This is especially important if you don’t fit the typical profile. Local lenders might be willing to work with you over a longer period to get your credit history cleaned up. They might also help you build credit so you qualify for a loan. They will take the time to look at your entire credit history as alternate forms of verification. Local lenders also have access to all the types of loans that bigger banks do, so if you want an FHA or USDA loan, they can do that!

If you’re not already familiar with a local bank, finding the right one can be a challenge. You will need to rely on word of mouth. Also, they have less staff. So, the hours that you can communicate with them will be less than those of a big bank. If you are only able to call someone on a weekend, you might be out of luck. Ultimately, this is your choice. You need to think about what is important to you and which one fits better with your budget, schedule, and situation. Consider every angle before you decide because this will be a long-term relationship and you should have all the information before you jump in

Since you’ve read through the benefits of a big bank vs. local lender when it comes to a mortgage, what have you decided? When you’re ready to start looking for your home, call us at (970) 858-9870! Our agents can help you navigate this process to make it as easy and stress-free as possible.