Why Use Local Mortgage Lenders?
Real estate agents who would represent you as a buyer do care which lender you use. They’ll often suggest that you use local mortgage lenders who’s experienced with your area’s nuances, such as local taxation rules, settlement procedures and appraisal methodologies.
These areas are all part of the loan process and can delay or kill deals. A nonlocal lender may not know how enough to handle them.
Likewise, real estate agents representing sellers on homes will often prioritize purchase offers based on the quality of loan approvals. Well known local lenders give your purchase offers more credibility.
A federal law was enacted in 1974 called the Real Estate Settlement Procedures Act (RESPA). This act prohibits lenders and real estate agents from paying each other fees to refer customers to each other. So as a mortgage shopper, you’re always free to use any lender you choose.
At Vellum we work with numerous respected local real estate and financial service professionals and are happy to provide recommendations if you need any advice!