Local Lenders vs Big Banks
When you make any major purchase, there is some aspect of sales. Whether it be a car or even a new sofa, you want to make your are picking the best product for you and your budget but also not feeling like you were pushed into getting the wrong thing by a salesperson. Research is always a good idea so you are not coming to the table without any knowledge, but having an experienced lender is going to help you along the journey to buying a home.
Choosing a lender is very important because you want to make sure your home loan and mortgage rates are going to be suitable for the term of that loan as it typically is the longest term loan most people have in their lives.
This Is A Partnership
When you make the decision to work with a lender, as you possibly have with a car or personal loan, you know that their trust in you as a borrower matters just as much as your trust in them as a lender. This is a partnership and both sides matter to each other in order for it to be successful. One way you can have a successful partnership with your lender from the start is to be a reliable borrower.
Big Banks
If you’re thinking of working with a national lender, there are plenty of benefits of doing so. One of the major reasons people choose to work with large banks is due to their reputation and history.
Purchasing a home is one of the biggest decisions you make in your life so working with a company that has been in the industry for a long time will make you feel more confident in the agreement. Due to their long standing history, they may also be able to offer a better deal when it comes to interest rates or special mortgage programs.
The major drawback when it comes to big banks is that due to their scale, it can make the customers feel like just a number. It may be easy to reach someone when it comes to communicating, but that person may not be very familiar with your specific situation.
Local Lenders
When it comes to local lenders, the best thing they can offer is making you feel like more than just a number. They have a smaller operation so that means they will have a better idea of your distinct situation and work with you throughout the loan process one on one. Bigger banks may not want to spend the time answering questions or helping out with paperwork, but a smaller scale lender has the time and is willing to do so to gain you as a client.
Local lenders are great for many reasons but since they are working on a smaller scale, they may not be accessible 24/7 like a bigger bank. They also may not be as popular as a bigger bank so figuring out the best local lender to work with will depend on word of mouth or lots of research.
Get Started Today
If you’d like to learn more about choosing a lender, or working with us on your home loan, contact North Star Mortgage Network. We would be more than happy to help you on your way to your dream home.