In a world turned digital, it almost feels natural to take our next steps in life with the help of the online world. After all, we buy groceries, cars, and so much more online; why wouldn’t we seek help with buying our homes online too? Whilst you can seek the help of an online mortgage lender, there are so many more benefits to going local. Today, we’re sharing the upside of using a local mortgage lender for your home loan.

What is a mortgage lender?

A mortgage lender can be an individual, public or private group or financial institute that lends a business or individual funds. These funds are for a property and are lent with the expectation that they will be paid back. Repayment usually involves interest and is paid through monthly mortgage payments. However, some may choose to pay their home loan off in a lump sum.

What is the difference between an online mortgage lender and a local mortgage lender?

An online mortgage lender is much more about facts and statistics than customer service and client connection. As everything takes place online, using an online lender requires mainly admin, emails and credit checks. In comparison, a local lender will require in-person meetups, relationship building and frequent communication. If you apply for an online mortgage lender for your home loan, you likely won’t speak to your lender or get to know them. In comparison, you’ll get to know a local mortgage lender very well and might even know others in your area using the same lender.

The benefits of working with a local mortgage lender:

Receive faster service

Despite claims that we live in a super speedy digital world, I’m sure we’ve all experienced times when online communication has taken much longer than expected. Using an online mortgage lender means you risk being a target of the overflowing inbox (they just never seem to get round to your email!) Or you might be the one that got away (they didn’t see your email, despite the three follow-ups you sent). Using a local mortgage lender, who will have fewer clients, means you’ll have faster communication. Being able to meet up in person also reduces the need for incessant emails. One in-person meeting and you can have all your questions and queries answered.

Develop a relationship

Let’s be honest; the online world takes all the joy and wonders out of customer service. We rarely get the opportunity to build meaningful connections with the people we buy from.  Taking out a home loan is likely the largest investment you or I will ever make. It seems wrong to make such a large investment not knowing who you’re lending from, doesn’t it? Sometimes, simply associating a face with a purchase can feel more natural and reassuring.
Borrowing from a local lender allows you to build a relationship with the person or establishment you’re lending a large sum of money from. This relationship facilitates trust. Trust can help us feel secure in our decisions and help us get the best offers and services available.

Local expertise

Borrowing from a local mortgage lender guarantees the bonus of local expertise. Local mortgage lenders stay in one location due to the success and connections they’ve made in the area. One of the biggest upsides to borrowing from a local mortgage lender is the confidence that this lender is trustworthy and well-experienced. From this experience comes an understanding of the area. Borrowing from a local mortgage lender means you can receive your home loan in combination with priceless advice and recommendations on how to invest in the local property market.

Reliable and flexible service

A local mortgage lender’s number one priority is helping you find a home. Unlike an online lender, local lenders can provide reliable and flexible services. These lenders aren’t solely out for profit. The vast majority of local lenders give home loans because of an authentic passion for property and a love for the local area. These passionate lenders won’t pressure you into speeding up the process or force your schedule around theirs. It’s more than likely that they’ll be willing to accommodate your needs and put your experience above everything else.

History of success in the area

Taking out a mortgage loan isn’t one of those trial and error situations. Lending money for a mortgage is something you want to go right the first time. Borrowing from someone with a history of success in the area gives you faith that things will go according to plan. Mortgage lending groups tend to have decades worth of success in the area. Consider this success as almost a guarantee things will work out. Would you rather borrow from a nameless, faceless online account or borrow from those with proven success in the area you want to buy? We’re betting it’s the second one.

Using a local mortgage lender also means you can ask others in your neighborhood if they’ve used the same lender. Testimonials from people you know are always worth more than anonymous reviews written online.

Extra bonuses and benefits

Local lenders are usually more affordable, and they will often give their customers benefits and bonuses. These benefits encourage loyalty to your lender and show they care about your experience with them. Benefits will vary from lender to lender, but they might include discounts, free pre-approvals and home warranties. Online mortgage lenders care less about providing a personal touch and will give you the same treatment as everyone else who lands on their website.

Borrowing money for a mortgage is one of the biggest investments you’ll make during your lifetime. It’s not something you want to be unsure about. Borrowing from a local mortgage lender has several benefits that help contribute towards the confidence and reassures you need for such a big investment. When it comes to working with a local mortgage lender versus an online mortgage lender, locals come out on top every time. If you’re ready to take out a home loan, reach out to local lenders and those in the neighborhood for their advice and recommendations.