Mortgage Broker or Loan Officer ? Local or online and possibly out-of-State

 

Mortgages 101: Selecting a Lender (cont.)

The loan officer for a bank or credit union originates loans that are offered through their lending institution. If using a bank or credit union, I strongly recommend local banks and credit unions rather than online or out of state lenders. The local lenders value their local reputation and usually reinvest in their local communities. It is a nice option to be able to physically go into a building and talk to a real person as questions arise. Local banks and credit unions are more likely to participate in state-sponsored special financing, such as first-time homebuyer programs (discussed a little later). Be sure to ask if these local lenders participate in federally subsidized loan products, such as Veteran’s Administration (VA), Federal Housing Administration (FHA), and Fannie Mae loans.

Knowing a few reputable mortgage brokers is also vital. A local bank or credit union works well for most uncomplicated situations. Sometimes buyers have special circumstances and need extra help in finding a mortgage loan that fits their situation. A good mortgage broker can shop around at many lenders to match your buyers with loans that work for them. Perhaps your buyers had a foreclosure or bankruptcy in their past. They may be self-employed or in a new field of work. They may want to buy a home that needs a total rehab. There are all sorts of situations where a good mortgage broker can quickly and easily secure a loan. Get to know a few mortgage brokers so you can identify the best ones in your area. Here again, I recommend going with someone local.

Local loan originators know the local customs and the local types of homes. I strongly recommend local banks, credit unions, and mortgage brokers over those who are out of state or in an unknown location.