Federated Lending Corporation

Local Mortgage Lenders VS Online Lenders

Many residents are content to continue renting a home; but, when someone is ready to consider buying a mortgage online may appear to be very tempting. Anytime you are dealing with financial matters online, there is a concern about the privacy of your personal information. However, there are other concerns that you should consider before applying for an online mortgage.

Local Lender Benefits

While an online mortgage may seem to be as good as any other option, there are some reasons why working with local lenders can be more beneficial to a buyer, particularly if you are a first-time buyer. Some of the advantages include:

Application process – the mortgage loan application, a Form 1003 is a confusing document. Should you make mistakes on these forms, your application could be denied. Leaving information off could also impact your approval. Being able to work with a mortgage officer face-to-face allows you to get your questions answered and ensure the forms are filled out properly.

Less underwriting flexibility – the process lenders use to approve loans is called underwriting. This process may be automated if you apply for an online mortgage. However, if you can meet with a loan officer, you can explain any reasons why a manual underwriting process should be used. Anyone with credit blemishes, recent job changes or other information that could impact your approval may be best handled by the manual underwriting process.

Knowledge of the area – local mortgage lenders have more knowledge about the area where you are buying your home. This means they understand the housing trends, know what types of mortgages are most popular in the area and likely live in the area. This can be very helpful, particularly if you are purchasing any type of unusual property.

Why Consider Local Before Buying a Mortgage Online

Online mortgage sites lure buyers in with promises of lower interest rates and more programs. Oftentimes, the buyer quickly learns they are not eligible for one of these low rate programs for a variety of reasons. After they are notified of this, the process may be several weeks into the application process and feel they have no choice but to stay with the lender.

Federated Lending is located in Bucks County, PA and provides a variety of loan options for those who are purchasing a home or refinancing their current mortgage. We are committed to helping residents of the area find the mortgage program that works best for their specific needs. We have helped first-time buyers and more seasoned buyers, including investors. Contact us before you start shopping for a home and let us help you get preapproved before you start shopping. Then you can shop with confidence, knowing exactly what mortgage program you are eligible for and how much you can afford to pay for a home.