I’m linking to a Wall Street Journal article by Leigh Kamping-Carder that outlines the benefits of shopping local – even for your mortgage.

That’s right – even in today’s day and age – the advantage of having a local lender still has its privileges!

Why?  Hasn’t technology taken over the mortgage process?

The Ability To Close the Transaction on Time

Kamping-Carder states: “Agents want to work with buyers whose lenders know the local market and have a record of getting deals done. That reassures the listing agent and the seller that a sale will close. In markets like San Francisco, Seattle and Boston, where buyers frequently go up against multiple offers and all-cash bids, confidence that a sale will happen can separate a winning bid from the rest”

“In tight housing markets where bidding wars are common, buyers who need financing can strengthen their offers by working with a locally based mortgage broker or loan officer, real-estate agents and lenders say.”

Sure, online lenders can offer convenience and even slightly lower rates in some instances. But real estate agents in markets with lower inventories (i.e. the western United States) consistently reiterate that the ability to close quickly should be considered one of the most important factors when choosing a lending partner.

Speed Is Key

Speed really is a big deal, as sellers fielding multiple offers will choose the buyer who can close quickly. Many local mortgage firms can close the deal inside of 30 days – and many times even less. The typical big bank or online lender is closer to 45-day time-frame to get a loan.

Local mortgage lenders in fast-paced markets are tuned to quicker closings – and they generally have the relationships with the real estate agents and title companies to move things along at a faster pace.

Personal Service

Most buyers and real estate agents will tell you that working with a local mortgage professional results in more personal contact, the ability to get questions answered promptly, and an overall better experience.

More often than not, the big banks and online lenders won’t be able to work odd hours to push those deals through quickly. That 1-800 telephone number won’t be answered at 9pm on Friday, but your local lender will most likely be there!