September 27, 2022

Why You Should Use a Local Lender

by Jessica Russo

Perhaps you’ve heard about a real estate deal being held up or delayed when a buyer is using a lender that isn’t local to the sale. It doesn’t happen often, because as highly specialized Nest agents in your area, we are almost always able to recommend or help connect you with the top local lenders in the area, but it does come up.

There are so many localized complexities to financing, we’ve found over the years that a lender with local knowledge is almost always the way to go. Yes, industry knowledge applies nationally, but there are levels of expertise specific to a region, city, even neighborhoods and developments, that you can only get with a vetted local lender.

Local Market Knowledge

First and foremost, says American Pacific Mortgage, real estate is a localized market: “You wouldn’t ask a Midtown Manhattan real estate agent whether you should buy a four-bedroom, three-bath home with a detached garage in Cleveland, right? Just as you wouldn’t ask a Los Angeles mechanic to winterize your Pennsylvania car, or your Dallas-based colleague what she thinks about the public school system in Seattle.”

In addition to their added local knowledge about area and the market, local lenders are often more attractive to sellers when reviewing multiple offers. The seller’s agent will advise them that a local lender is more capable of completing a timely and smooth closing—and in fact, according to Big Valley Mortgage, some sellers and agents might not even consider offers including national banks or online lenders, because they have seen these deals go south.

Local Programs

Whether you are a veteran, looking to install solar, or tapping into any number of special lending programs, working with a local lender gives you many advantages. Sure there are national programs and tax credits, but states and cities also have many programs that your local lender should be knowledgeable about. Why leave money on the table?

Of course, spending your money locally also benefits your local economy, and helps sustain your neighbors, friends, and local businesses that will be there alongside you for your new homeowner journey for years to come.

Mature indian man shaking hands with financial advisor at home. Happy smiling couple greeting broker with handshake at home. Multiethnic mid adult man and hispanic woman sealing a contract

Local Rules/Regulation Knowledge

Don’t get into a situation where you are jeopardizing the home of your dreams due to an administrative error or red tape, even jeopardizing your earnest money in some cases. A local lender will know what type of loan is right for you. They will also be aware of potentially confusing circumstances like tribal-owned land leases and other covenants and restrictions that could affect your ability to borrow money, and affect your monthly payment, as well as your overall qualification. These types of potential SNAFUs are not worth risking on your own.

Reliability

It is in everyone’s best interest—the sellers, agents, buyers—to keep things on track, including the loan closing on time. Local lenders tend to have the reputation for making this happen. They are vested in making the process go smoothly and on time, because they are working with local agents all the time, and want referrals just like every body else. Working locally, lenders have more power and flexibility, and longer hours, to move things around, expedite, and hit tight deadlines to make the deal go through. You can also take advantage of quick document and check hand offs and in-person meetings when necessary.

Don’t hesitate to reach out to your Nest agent for local lender recommendations!


What Buyers Need To Know About the Inventory of Homes Available for Sale

What Buyers Need To Know About the Inventory of Homes Available for Sale

If you’re thinking about buying a home, you’re likely trying to juggle your needs, current mortgage rates, home prices, your schedule, and more to try to decide if you want to jump into the market. If this sounds like you, here’s one key factor that could help you with your decision: there are more homes for sale today […]

Millennials Are Still a Driving Force of Today’s Buyer Demand

Millennials Are Still a Driving Force of Today’s Buyer Demand

If you’re thinking about selling your house but wondering if buyers are still out there, know that there are still people who are searching for a home to buy today. And your house may be exactly what they’re looking for. While the millennial generation has been dubbed the renter generation, that namesake may not be appropriate anymore. Millennials, the […]

Perspective Matters When Selling Your House Today

Perspective Matters When Selling Your House Today

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain the shift that’s happening today and why it’s still a sellers’ market even during the cooldown. Fewer Homes for Sale than Pre-Pandemic While […]

Tips for Remodeling and Decorating Kids Rooms in Your Home

Tips for Remodeling and Decorating Kids Rooms in Your Home

As Nest agents, we’ve seen more than our fair share of kid’s bedrooms—from our own children and those of our clients. Let us share a few of the top tricks and tips we’ve seen and learned over the years for remodeling or decorating kids rooms in your home! DESIGN CONSIDERATIONS // establish a color palette […]

How to Reduce Your Carbon Footprint as a Homeowner

How to Reduce Your Carbon Footprint as a Homeowner

The real estate industry plays an important role in the realm of carbon emissions. The construction of homes requires a large input of resources—starting in the planning stages and extending through the entire lifespan of the home. At the same time, the real estate industry creates many positive impacts as well. It creates jobs across […]

Which is Best for your Deck: Wood or Composite?

Which is Best for your Deck: Wood or Composite?

READY TO COMMIT TO YOUR OUTDOOR DECK PROJECT…YOU’VE GOT CHOICES TO MAKE. When one of our Nesters was embarking on a recent project to expand a back deck off of their new home, one of the first questions that came up was, wood deck boards, or composite? Summer may be winding down, but some home […]

Top Considerations When Moving Out of State

Top Considerations When Moving Out of State

MOVING IS COMPLICATED ENOUGH. MOVING ACROSS STATE LINES ADDS EVEN MORE COMPLEXITY. Here are some of our agent’s top considerations for clients who are moving out of state. Timing is everything. And in this case, it truly is; from packing and scheduling movers, to inspection deadlines (on both ends), closings, and everything in between, moving […]

The U.S. Homeownership Rate Is Growing

The U.S. Homeownership Rate Is Growing

The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year: That data shows more than half of the U.S. population live in a home they own, and the percentage […]

Charlottesville 2022 Mid-Year Report

Charlottesville 2022 Mid-Year Report

WELCOME TO THE CHARLOTTESVILLE 2022 MID-YEAR MARKET REPORT. So far, 2022 has been another remarkable year in Central Virginia real estate. We’ve all read stories about low inventory in the market, the speed with which homes are going under contract, and overall competition for buyers throughout the state and the country. In the Charlottesville MSA, […]

A Real Estate Professional Helps You Separate Fact from Fiction

A Real Estate Professional Helps You Separate Fact from Fiction

If you’re following the news, chances are you’ve seen or heard some headlines about the housing market that don’t give the full picture. The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where a trusted real estate professional comes in. They can help debunk […]