FINDING THE RIGHT MORTGAGE LENDER | ONLINE LENDER VS. LOCAL
Finding the right lender to work with can be difficult just like finding the right Realtor. There are so many to choose from! But how do you select the right one? Let’s dive in!
RECOMMENDATIONS FROM YOUR REALTOR
Start by asking your real estate agent who they recommend. Your agent is in the trenches every day and knows the ins and outs of the business. They should have a preferred lender that they work with, because they know that particular lender is good at what they do.
Since your agent probably works with their preferred lender frequently, the lender typically works more diligently to get their clients approved without any major hiccups along the way.
Chances are, your agent has seen the worst in the business and knows who to stay away from. Just like Realtors, not all lenders are created equal.
LOCAL LENDERS VS. ONLINE LENDERS
Each have their pros and cons. If you want a more personable approach, work with a local lender. If you don’t care about communication and don’t expect to meet with your lender, take the online approach.
Sometimes online lenders may give you better deals because they don’t have much overhead expense, but they lack properly qualifying borrowers. This can lead to you getting denied after you go under contract. Which then leads to you losing out on your house and potentially losing money that you have already put into the house such as your earnest money, option period fee, inspection fee and more.
A local lender will properly vet their borrowers from the very beginning before giving them a pre-approval letter and sending them out house shopping. They can be more expensive to use, but not always. If you can provide them what another lender is offering you, it’s possible they can match it or come close. Local lenders tend to have a better reputation in the real estate world for various reasons.
Shop and compare rates if you want to. Use a lender that will take the time to give you a proper pre-approval, not just handing them out like candy. Find a lender that has excellent communication skills and is passionate about what they do. If you like a more personable approach, someone you can call and they will actually answer the phone, or someone you can rely on because you know you both share a common goal, go with a local lender.
If you are thinking of buying a house in the Houston area, head over to our home page and click on get pre-approved. We have preferred lenders that we work with that are excellent at what they do.