Online vs a Local Lender: Devil is in the Details
The initial convenience of online mortgage lenders & call centers over using a local lender is very attractive. However, what seems easier and cheaper on the surface can cause a great deal of aggravation later. Not to mention it may cost borrowers a lot more money in the long run.
The lender you choose can make or break your lake house purchase in Wayne & Pike County PA.
Online mortgage lenders often rush the pre-approval. Many also charge a non-refundable application fee. Most national lenders pre-approve borrowers instantly, but without fully verifying income, employment and credit issues.
Later, deep into the process, underwriters may deny the mortgage if something negative turns up that was missed in a hasty pre-approval. Now, not only does the borrower lose the money for the application fee, but the borrower could lose other transaction fees as well. The home inspection fee, appraisal, and credit report are paid early in the process. Together, they could cost as much as $1,000 or more.
Even if the mortgage is not denied, there be could be other fees that increase your total loan cost considerably above the cost from a local lender or bank. This is sometimes the case with national lenders offering veteran (VA loans) and other government loans.
Tip: Use a Local Lender in Pike & Wayne County
My clients are always advised to use a local, trusted mortgage lender or bank. The local lender will spend more time with you during the pre-approval process to ensure your approval is reliable. They meet with you face to face if you like. They answer the phone, return calls, and respond to emails quickly. Their reputation in Wayne and Pike County depends on their service to you.
If you prefer an online experience, the local banks and mortgage brokers have online portals for you to use. They offer everything the national lenders on TV offer, and often more! When you use a local lender, you avoid wasting time. You also lower your risk of a broken heart due to a mortgage denial!
Finally, because they are members of the community, our local lenders know and understand the unique aspects of the Lake Wallenpaupack region of Pike and Wayne County (and beyond). They patronize our Hawley, Honesdale, and Milford businesses, contribute to our charities and fundraisers, and support our schools. Many have deep community roots and have raised their families here in Northeastern PA.
You are not just a number to a local lender, you are a neighbor.
Over the course of the next few weeks, I will be sharing mortgage tips and helpful information for home buyers in a series of articles featuring several local lenders, including mortgage brokers and banks in the greater Lake Wallenpaupack region of Northeastern PA.