Local Lender Vs Big Bank Which Is Better

Dated: 09/24/2013

Views: 692

When someone is interested in buying a home, and we begin to discuss their financing options, we always review and discuss the "big bank" vs local lender scenario.

More times than not, people tend to think that since they make their weekly deposits at a local branch, that they must be masters at their craft, and can process a home loan as well.  This is not the case anymore, and we have seen first hand, twice in September, that "big banks" will leave a buyer high and dry at the closing table, out thousands of dollars, with no keys!
Here is what usually happens when you go to a "big bank" for a home loan.  After initially completing all of the applications and paperwork, your "file" is passed along to a processor, sometimes not even in your time zone.  Once they receive your information, it may be shared with other employees who are working on similar files.  If you have a question, you are always welcome to contact someone between the very few hours they answer calls.  If it's after 4PM on a Friday, you will most likely receive a call back first thing Tuesday morning. 
Their is a significant lack of personal attention in regards to the biggest purchase you will ever make.  They will pay very little attention to the fact that you are first time home buyer, and have a lot of general questions about the loan process.  All of this leads up to paying for origination fees, inspections and appraisals, only to find out last minute that they neglected to verify your last tax return or home owners insurance. 
On the other hand, if you prefer to work with someone who has a reputation of closing on time, is available to meet with you face to face, answer your emails and phone calls after 5pm and on weekends, you will have a more successful buying experience.  If your loan is being processed with someone that your realtor recommends for example, that realtor knows the closing ratio for this particular lender, thus the reason they rely on them.
It is 100% up to the buyer who they decide to have process their loan, but do remember, when you are not able to purchase a home because the lender neglected to do their due diligence, there are other people who are negatively effected, including the sellers.  And in some cases, the sellers have already moved out of their home, and have made other arrangements under the assumption that your loan will be ready by a specific date.
This scenario happens all to often, and we only hope that each time someone is not able to buy or sell a home because of this, that they are able to use this a learning experience, and go into the next transaction only a little bit more educated.
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Steven Horner

If you are interested in buying or selling a home in the Central Florida area, let's talk! Steven is an Orlando based Realtor specializing in many of the desirable communities within the Central Fl....

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