Now is the time to talk with your local mortgage lender if you are thinking of buying your first home, moving into a bigger home or looking to downsize. It is still a seller’s market with fewer homes for sale. However, the craziness seems to be cooling down a bit!
Here are seven reasons to use a local community bank lender in today’s market.
1. Local Housing Market Expertise
Community bank lenders are just that…they provide mortgage loan expertise in your community. As mortgage rate increases begin to stabilize – and may even drop a bit from the abrupt increase from the lowest mortgage rates in history – they understand your individual needs. In addition, home prices are also starting to stabilize. There are still fewer homes for sale; however, the bidding wars have calmed down making it a wise time to consider a new home. If anyone knows the pulse of the local housing market, it’s your local community bank lenders.
2. Local Economy Assessed Daily
One of the ways your community bank lenders are able to compete with the big institutions is through their familiarity with local market conditions. Your local community bank lenders are assessing the financial risks and opportunities in your area daily because this is where they work and live. Unlike big banks, their understanding of the local economy is used when approving home mortgages.
3. Greater Flexibility to Loan
Community bank lenders can often approve mortgages that big banks are unable to approve because of their cookie-cutter guidelines. Many community banks have lending guidelines that are different and more comprehensive. Big bank lenders need to efficiently process large numbers of loan applications; therefore, they need to have rigid guidelines that enable them to identify qualified borrowers with a minimum of fuss. Anything that falls outside conventional guidelines can be denied. Community bank lenders can often think outside the box offering greater flexibility when making local loan decisions.
4. Local Decisions = Quick Decisions
When your community bank lenders live and work in your community, you’re that much closer to the decision makers with the authority to approve your mortgage. Rather than dealing with bigger banks that are most likely outside of Michigan – with multiple departments and inquiries – your local community bank lenders can make decisions on your mortgage quickly and efficiently.
5. Relationships Matter Greatly
Buying a home is always a significant investment in your future. Working with someone you trust is the first step to building a lasting relationship. Again, because your community bank lender lives and works in your community, relationships matter greatly. Your personal relationships will continue to matter in your everyday banking as well as when you look for additional financial advice in your future.
6. Unique Loan Products, Personalized Services
Many community banks offer unique loan products to best fit your needs, lifestyle and budget. Again, community bank lenders understand the local market, economy and community. They can offer unique loan products community banks are willing to consider. Also, personalized service is what community banks have been known for throughout history. Whether it is with your personal banking needs, loan requirements or just needing help with the latest technology, your community banker stands ready to serve you.
7. Local Mortgage Closings
Because you’re much closer to the decision makers with the authority to approve your mortgage, your closings can be timelier, too, to fit your needs and schedule. You are dealing with a local mortgage team who can handle your inquiries quickly and efficiently, and at a closing that will happen on time with locally based agents.
One other reason to work with your local community bank lender — Kalamazoo County State Bank (KCSB) is the local community bank serving your neighborhoods for 115 years. As KCSB celebrates its 115th Anniversary in 2023, feel free to stop in for some financial advice on any of your financial needs.
Call us at 269.679.5291 or visit us online at https://kcsbank.com/mortgages/.
Kalamazoo County State Bank is an Equal Housing Lender.
Related
FAQs
Local lenders have a much better understanding of the local market, are able to make decisions locally, offer personalized service, and typically have access to a variety of loan options. Learn more about DCCU mortgage options here.
Why use a local lender for a mortgage? ›
Local lenders have a much better understanding of the local market, are able to make decisions locally, offer personalized service, and typically have access to a variety of loan options. Learn more about DCCU mortgage options here.
Is it better to go with a local mortgage broker? ›
Because, at the end of the day, a local Mortgage Broker can help you make intelligent decisions with information you may not be able to obtain elsewhere. Understanding local trends is particularly important for investment property loans, where the investment loan application process is just the beginning.
Does a mortgage broker need to be local? ›
Some insist that a broker must be licensed in the province where they arrange financing, while others are more flexible. However, this flexibility can have implications, as some lenders explicitly reject applications from brokers outside their provincial jurisdiction.
Why do you need a mortgage lender? ›
They Make The Home-Buying Process Less Time-Consuming
Working with a mortgage lender doesn't require many steps. Typically, you apply and they will get to work! In comparison to submitting forms for individual lenders, mortgage lenders will help identify the options available to you and compare them to each other.
What are the advantages of local borrowing? ›
Public buildings, roads, and bridges are used for decades but entail large upfront costs; borrowing enables the state to spread out those costs. As a result, taxpayers who will use the infrastructure in the future help pay for it, which promotes intergenerational equity.
Does my mortgage lender need to be local? ›
While it's true both have their pros and cons, working with a local mortgage lender could be your best move. Going local offers advantages that can make your home-buying journey a lot smoother and more personalized than tapping the market heavyweight.
Is it better to get a mortgage from a local bank? ›
If you prefer a more personal touch and insight into the local market, a local lender could be the right choice for you. However, if you value a wide range of loan options and broad accessibility, a national lender might be more suitable.
Do mortgage brokers offer better rates than banks? ›
The Bottom Line. While a mortgage broker is a one-stop shop for multiple options, their fees come from the lender, so it may be possible for well-qualified buyers to get better rates and fees by cutting out the middleman.
Why is it better to go through a broker? ›
Brokers make it easy for you because they know banks, bankers, loan products and loan terms. They can sift out what's going to work for you, and what isn't. They know where to go, and what you need to provide, to get you the finance you're looking for. Brokers make it easier for the lenders to say yes.
If you're looking to buy a home, working with a local lender is a great option. Local lenders have a better understanding of the market in your area and can provide more personalized service to your specific needs.
Does my mortgage broker need to be local? ›
So, no the mortgage broker doesn't need to be anywhere near your properties, they just need to be able to raise the finance. You want a whole of market mortgage broker and hopefully a mortgage broker who is an investor in their own right so they understand what you're trying to do.
Do I really need a mortgage broker? ›
Whatever your circ*mstances, getting professional help immediately will save you time and effort in the long run. A good broker will understand the mortgage process, explain everything you need to know, and help you with your application. Choosing the right broker should also save you money on your mortgage.
Do mortgage brokers get you a better rate? ›
Many individuals prefer to work with a broker regardless of their situation because it gets them access to lenders they wouldn't think to look for. Mortgage brokers may also be able to help loan seekers qualify for a lower interest rate than most of the commercial loans offer.
What are the 5 Cs of credit worthiness? ›
The five C's, or characteristics, of credit — character, capacity, capital, conditions and collateral — are a framework used by many lenders to evaluate potential small-business borrowers.
Is it better to go through a lender or bank? ›
A full service bank ensures your loan will stay with the same company for the entire term. Do be sure to make sure that the bank does service their own loans. On the other hand, a mortgage company can offer fast closings, product availability, and loan originator expertise.
Is it better to get a mortgage with a local bank? ›
Local lenders often provide more personalized attention and better customer service. You can probably meet your loan officer face-to-face if you'd like, but either way you'll be able to take advantage of their expertise to help guide you through the mortgage process while addressing your specific needs.
Is it better to get a mortgage from a bank or a private lender? ›
The best option for you depends on your specific circ*mstances. If you lack credit history or have poor credit it may be easier to get a loan from a private lender. If you have a good credit score or an established relationship with a bank, you will likely qualify for better lending terms.
Why do builders want you to use their lender? ›
Many builders offer incentives, such as cash to cover closing costs or nicer home features, if you choose their preferred lender. You may have a higher chance of approval. It benefits builders to partner with mortgage lenders that are more likely to approve buyers with different credit profiles.
Should I use a private lender? ›
Private individual lenders are generally more willing to work with people with a lower credit score or more difficult lending situation. They do this in exchange for a higher interest rate and they have a higher rate of acceptance on the loan as well.
