It is important to do an ample amount of research and shop for a mortgage loan before deciding who to work with. While big banks have a strong presence they are typically very slow and lack mortgage options for most consumers. Smaller lenders usually offer better deals and much more personal attention.
Below are five reasons why choosing a local lender may be your best option:
- Lower Rates and Fees
Boutique mortgage lenders, such as Bluefire Mortgage Group, offer the same variety of products as big banks, but typically at much lower cost. Mortgage rates and closing costs vary from lender to lender but small lenders are usually more competitive by offering more attractive interest rates. A lower interest rate can save thousands over the life of a 30 year mortgage, and lower fees result in fewer upfront costs.
- Faster Response Time
With a small lender, the borrower is closer to the decision makers with the authority to approve their mortgage. Big banks tend to have a large mortgage department which receives dozens of applications weekly. Small lenders house a small team that can handle inquiries quickly and efficiently and offer the borrower more personal attention.
Because decisions are made locally, borrowers can often get a mortgage approved faster through a local bank or credit union than through a big box lender.
On average for a pre-approved buyer, we can get a loan into closing within 14 calendar days. This gives our buyers a sense of security and trust when it comes to taking financial advice and making other financial decisions down the road.
Big lenders need to efficiently process large numbers of loan applications. In order to accomplish that, they need to have fairly rigid guidelines. Small lending institutions, on the other hand, can often approve mortgages larger banks are unable to because their guidelines are much more simpler.
Often, it’s a matter of time and effort it takes to qualify a borrower. Large lenders tend to pass over the loans outside of the mold because it takes too much effort to properly qualify such borrowers. But for a small lender, these might be exactly the sort of niches they have expertise in.
Boutique mortgage lenders offer flexibility and can also save you money. Credit unions in particular can sometimes structure loans in ways that allow you to make a smaller down payment or make a small down payment without paying for mortgage insurance, for example.
- Local Market Familiarity
Besides knowing the area and local real estate market well, 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 seller’s market 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 the bad reputation some of these have, or their high volume of clients which takes away from their promptness.
- Specialized Finance Options
Boutique mortgage lenders also work with the type of specialized loans the big box lenders do not want to deal with because they may not be as cost-effective for the lender.
Also big box lenders often lack specialized products. At Bluefire Mortgage Group, we strive to create smooth experiences for every borrower.
If you are interested in working with us and want to know how to get started, please feel free to reach out to Bluefire Mortgage at (760) 930-0569 to discuss your financial options.