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Pro Tip: Choosing a Lender

The market is hot, and you’re ready to buy. The first step is getting approved on your loan. But which lender should you use? The promise of quick approval through internet based providers is tempting, so why use a local lender?

Whether buying your first home or your forever home, finding the right lender is the only thing that may just be more important than finding the best house.  Whichever loan provider you choose, here are five reasons to consider using someone from your local area.

1. Reliability

Everyone involved in the process, sellers, real estate agents, and you, the buyer, want the loan to close on time. Local lenders have a better reputation for closing loans on a timely basis. If the closing of a loan has to be extended by a week, and then extended again after that week is up, this could cause a certain amount of stress and uncertainty. In the worst case scenario, if a loan is denied at the last minute after a buyer has already paid an earnest money deposit, this could cause the buyer to lose his deposit as well as miss out on buying the home of his or her dreams.

2. Local expertise

Besides knowing the area and local real estate market, a local lender will appear more attractive to certain home sellers and real estate agents because of the importance of a timely closing and a smooth process. In a situation where several offers are on the table, having a local, trusted lender could be the difference between landing the house or not. Some sellers and real estate agents may not even consider offers from national banks or online lenders because of previous bad experiences, or because of the bad reputation some of these have.

3. Personal service

You can meet your lender face to face and ask questions in person if need be. In an era when phone calls are considered intrusive, and people generally don’t like talking on the phone, I find that meeting people face to face can be very effective for resolving issues. I think it slows down the pace of the discussion, and it is more effective for getting on the same page.  There is also more incentive to provide quality service when you could run into that person at the grocery store this evening.

 4. Reputation, reputation, reputation

Local lenders and real estate agents have an incentive to provide you with excellent service, because we want you to be a source of referrals for future business. We know that, whether you have a great experience or a bad one, you will tell your friends and family.  These people live, work and worship in the same local community, and thus, it is our reputation and livelihood that is at stake.

5. Buy local, borrow local, help the local community

Most people are aware of the effect that buying locally produced goods or spending money on locally owned businesses has. The money recirculates within the community and creates jobs and wealth in our local economy.  The same is true with using a local lender.  The money you pay to a local lender will be loaned out to other local home buyers and businesses down the line.  More importantly, your local loan officer’s salary will be spent right here in the CSRA, and that is a win, win for everyone.  Call or text me at 706-726-2981 when you are one to three months from purchasing, and I will happily connect you with one of our many excellent Augusta Area local lenders.

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