So you’ve buying a home…congratulations! It’s a great investment.
Now that you have begun your joourney, the first thing you want to do is to get pre-approved for a mortgage. Why? Beucase when you find the home you want, you are ready to make an offer. Having the pre-approval shows the sellers that you are a qualified buyer and if there are other offers on the table, yours will stand out because you are qualfified for a mortgage. One of the biggest challeneges buyers face is getting approved for a mortgage. So start with a pre-approval. It shows the sellers you have done your hoework anbd you are ready!
The next step is to decide if you are going to use a local or non-local lender. It may be enticing to use a non-local lender if they are promising you lower rates, but consider the value in using a local lender.
At Charles Rutenberg Realty, we belive in the power of local! Using a local lender has it’s advantages. Buying a home a big deal and getting the fincing for your purchase is even more importgant. Think about it…without a morgage, you can’t buy a home.
So if you are in the process of choosing a mortgage copany, think local. Here’s why you want to use a lcoal lender:
- Smooth Transaction: Real estate agents want your transaction to go as smooth as possible. The chances of that happening increase with a local lender who has a good track record, who is familiar with the closing customs, and underwriters are familiar with the market.
- Financial & Down Payment Assistance: Certain down payment assistance & first time homebuyer programs are only offered through lenders who are located within the state, county, so using an out-of-state lender may limit those options.
- Face-to-Face is Always Better. Local lenders know the area, are familiar with the local issues, are convenient so you can do business face-to-face, and they work hard to build a great relationship with buyers & agents.
- Reliablity. Local lenders are very reliable and when there are concerns, it seems that the local banks can usually work things out. Local banks have saved several deals because they were more flexible and still rely on local appraisers.
Sometimes their rates may seem attractive, but it’s better to shop rates locally, and not have the added stress or delays. Ask your real estate professional to recommend 2-3 lenders that you can interview to get your pre-approval process started.
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