Federated Lending Corporation

Local Lending VS. National Lenders

There are a number of decisions you have to make when you are considering purchasing a home or refinancing your existing mortgage. One of those decisions could have a serious impact on you for years to come; that is the decision about your lender. You have the options of using either national mortgage lenders or local mortgage lenders. Borrowers are nearly always happier if they deal with a local mortgage bank; remember this is someone you will be dealing with for more than 20 years. 

The Hometown Advantage 

There are numerous advantages to working with local mortgage lenders or a local mortgage bank. One of the primary advantages is having someone nearby to answer your questions. The other advantage is local mortgage lenders know the area; while a national mortgage lender may have a branch office, oftentimes they are staffed with people who live in another area. Working with a Bucks County, PA mortgage lender means you will be working with someone who knows the area, knows the people and understands the market. 

Other Benefits of a Local Mortgage Bank 

Because local mortgage lenders are focused on their community, chances are you will be able to get a lower mortgage rate, better customer service and in some cases, lower mortgage loan fees. This is because the local mortgage bank has a vested interest in the community; this is where they live, where their families live, and in many cases where they contribute their time and efforts to improving the community. 

Loan Servicing Challenges 

Another reason why you may want to work with a local mortgage bank is what happens to your loan after closing. While it is not always the case with local mortgage companies, national lenders nearly always sell the mortgage servicing at the time of closing. This means while you may take out a loan with one company, by the time your first mortgage payment is due, it will be payable to a new entity. This is less common with a local lender. 

Time Factors Matter 

Another benefit of working with a local mortgage lender is time. In nearly all cases, you can get your loan approved and closed faster with a local mortgage bank than you can with a national lender. This is a significant benefit for everyone involved in the transaction; the seller gets paid faster, and you get to move into your new home faster. 

Buck County, PA residents who are considering buying a home or refinancing their current mortgage have a lot of decisions to make and one of the most important is who to approach for financing. Work with someone who knows your neighborhood and your community, contact Federated Financing today and speak with a local loan officer about your home financing. You will not regret working with a local lender for your mortgage needs.