Lending, Why Working with a Local Lender May Help Your Offer
This environment has widened the gap of ‘winners’ and ‘losers’ when it comes to obtaining a home. It was recently asked. “How can local lenders be seen as a competitive advantage in this market?” and this is what we will attempt to answer in bullet points below!
- A seasoned local lender will anticipate the Known Issues to our areas before they arise whereas a non-local lender simple doesn’t know what they haven’t yet experienced.
- The local lenders know the appraisal time frames in our area and have preapproved panels of only the best area local appraisers. For example, local lenders will only pick the top performing out of the 20 or so available in Flagstaff.
- Local Lenders know property specific concerns that range from utility requirements (septic, water haul, wells etc) to location and access issues (road maintenance agreements, forest service road access etc) and can resolve upfront before these postpone or derail transactions.
- Local lenders have a team from start to finish that understands Northern Arizona.
- Local lenders typically have processors and underwriters that are familiar with the area or work exclusively in this area so they understand how employment aspects, property aspects and overall logistics work for real estate transactions in the market you’re purchasing. Out of state and out of area lenders often struggle to grasp certain issues and can decline financing where area-focused processing and underwriting work easily through the system.
- Local Lenders are a known commodity.
- There are over 20 different factors that a seller may consider when an offer is presented, the Highest and Best offer is not necessarily the only deciding factor. Lending is a significant factor when sellers contemplate when accepting an offer, thus taking their home off the market. Though it would be great if ‘all lenders were created equal’, it is the unfortunate experience that out of area and unknown lending entities could pose a risk to the seller as they are an unknown commodity. With strong track records of performance and a dedication to the local real estate industry’s success, local lenders are a known commodity that then offer a competitive advantage on an offer. The Local lender also understands they are expected to Close on Time, or the next Seller/Buyer will not come their way.
- Lastly, it’s detailed and personal!
- This may sound like ‘fluff’ but most local lenders are going to work to specifically understand YOU and YOUR NEEDS and not treat you like another number or transaction. This not only means that you’re likely to get the proper advice and direction upfront during home shopping (which can be extremely critical!) and a smoother transaction through the processes but it also means that when obstacles arise you have some one that is personally fighting for you as a member of your real estate team.
- The Listing Agent most likely knows the Local Loan Officer and having a positive past work experience with the Loan Officer can be critical. These listing agents remember which lenders/loan officers got the past buyers’ loans to fund on time and make the home closing process a smooth experience for them and their past clients.
- Funding Loans with no delay on closings is a positive impression the real estate agent carries forward in factoring buyers’ lenders in a competitive real estate market with multiple buyers on the same property. The personal Call the Local Loan Officer makes to the listing agent touting the strong buyer and no worries on the loan funding is a big endorsement to give our buyers an edge against the competition.