Why Should You Use A Local Lender?



Everyone involved in the home buying and selling process wants the loan to close on time.  Local lenders have a better reputation for closing loans on a timely basis.  Closing delays can cause a certain amount of stress and uncertainty for all involved.  Including scheduling conflicts with the movers for both the seller and buyer.  

If a loan is denied at the last minute after a buyer has already paid an earnest money deposit, a buyer could lose the deposit as well as miss out on buying the home of his or her dreams.

Reputation, Reputation, Reputation

Local lenders and real estate agents have an incentive to provide you with excellent service because they want you to be a source of referrals for future business.  They know that whether you have a great experience or a bad one, your friends and relatives are going to hear about it.  These people live and work in the local area, and thus, it is their reputation and livelihood that is at stake.

Personal Service

You can meet your lender face to face and ask questions in person if need be.  In an era when phone calls are considered intrusive and people generally don’t like talking on the phone, meeting people face to face can be very effective for resolving issues.  It slows down the pace of the discussion and it is more effective for getting on the same page.

Personal Service Buying Your Palm Springs Home With Realtor Kevin Stanley

Local Expertise

Besides knowing the area and local real estate market, a local lender will appear more attractive to certain home sellers and real estate agents because of the importance of a timely closing and a smooth process.  In a situation where several offers are on the table, having a local, trusted lender could be the difference between landing the house or not.

Some sellers and real estate agents may not even consider offers from national banks or online lenders because of previous bad experiences.  Some have a bad reputation for not closing on time.  National banks and lenders generally do not lend on lease land.

Buy local, borrow local, help the local community

Most people are aware of the effect which buying locally produced goods or spending money on locally owned businesses has.  The money recirculates within the community creating a positive effect.  The same is true with using a local lender.  Very likely the money you pay to a local lender will be loaned out to other local home buyers and businesses down the line.


Pre-qualified is when you (the consumer) agree to provide your credit information to a lender in order to shop for credit offers—such as a credit card or loan.

Pre-approved is when a lender independently determines that you meet their requirements for credit and sends you an offer. If you’re pre-approved, you can then decide whether you want to formally apply for and ultimately accept the offer of the loan or credit card from the lender or creditor.



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