Lending Insights

Johnny Kellogg with Artisan Home Loans

the benefits of working with a local lender + the risks of working with a non-local lender

Benefits of a Local Lender:

// comprehensive + updated knowledge of the market behaviors in the neighborhood of your search to determine their strategies + programs

// deep understanding of the local contracts (vary greatly state to state)

// accessibility during key negotiation phases, timezone & work day line up can make a significant difference

// reputation risk - a local lender builds their business based on the relationships created and nurtured through their transactions, ensuring clients + agents alike are going to spread their name in a positive light is a huge motivator to perform at the highest level

Disadvantages of working with a non-local or national lender:

// may have specific requirements for loan underwriting that aren’t common practice where you are buying, which could create an unexpected hurdle when trying to get to the closing table

// while they may be able to offer a slightly lower interest rate than a local lender, the added fees + conditions may not make it any more affordable a financing option

// lack of understanding of the nuances of a transaction, industry standards, etc. of each local market

// lack of accessibility during key negotiation phases

// less concern for the impact of each transaction on their reputation as their business is not dependent on referrals