National vs. local mortgage lenders: Which is best for you?
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When looking to get a mortgage, homebuyers will have to choose between a national and local mortgage lender. Both national and local mortgage lenders have situations when they are beneficial.
If a local lender sounds like the right choice for you, research options in your area.
If you think a national lender is the right choice for you, start a mortgage application online.
Benefits of working with a national lender
There are many benefits borrowers who choose to work with a national lender could take advantage of. Some of the benefits these borrowers will see right away are convenient online applications and fast pre-approval times.
Convenient online application
Many national lenders offer fully online applications, making starting and completing your application quick and convenient. Some national lenders are completely online, specializing in only applications.
Fast pre-approval times
National lenders may be able to offer faster mortgage pre-approval times, thanks to their automated underwriting system and digital submissions removing the manual underwriting process. Borrowers who choose a national lender could be pre-approved in one to three business days.
More loan options
Borrowers could see a larger number of mortgage products at a national lender. With more home loan options available through a national lender, borrowers have a better chance of finding a mortgage that best fits their needs and situation.
Benefits of working with a local lender
Working with a local lender can come with its own benefits. Some benefits that borrowers who choose a local lender could see are a personalized experience, local market knowledge and face-to-face support.
Personalized guidance through the lending process
With a local lender, borrowers could see more personalized guidance through the lending process. Local lenders can take the time to understand your specific financial situation and walk you through the mortgage process, showing you the mortgage option that could work for you.
Local market knowledge and community expertise
One of the major benefits of choosing a local lender is their knowledge of the housing market in their region. Their knowledge can include property values, taxes and regulations specific to the area you are looking to purchase a home in.
Face-to-face support
Some borrowers may prefer face-to-face interactions with their lender over an online experience. If this is what you’d prefer, a local lender might be the best option for you.
Are interest rates the same between national and local lenders?
Mortgage interest rates between national and local lenders can vary but tend to be in the same range.
Local lenders will look at the market in their specific area to help set their rates, while national lenders will look at the market across the country when setting their rates.
Due to their size, national lenders have the ability to manage fluctuations in the base interest rate, which they may pass on to their borrowers through a lower rate. However, depending on the housing market in your area, a local lender may come in with a lower rate.
If you are looking for the lowest interest rate, compare local lenders in your area to national lenders.
When a national lender may be a better fit
A national lender may be a better fit for you if you’d prefer to get approved for your application quicker or have access to a larger number of loan products.
When a local lender may be a better fit
If you are looking for a more hands-on approach from someone who understands the market where you are shopping, a local lender may be a better fit for you.
How to find a local lender
If you are looking for a local lender, you can research banks, credit unions or mortgage brokers in your area. For those working with a real estate agent to purchase your home, your agent may know of a local lender who could help you.
Some national lenders, like Rate, have Loan Officers across the country. These Loan Officers will have a knowledge of the market in your area, offering you the benefits of a national lender while taking advantage of some of the benefits local lenders offer.
Find a professional local Loan Officer in your area today!
Rate cannot guarantee that an applicant will be approved or that a closing can occur within a specific timeframe. All dates are estimates and will vary based on all involved parties level of participation at any stage of the loan process. Contact Rate for more information.
