Last year, almost three-quarters 74% of homebuyers financed their home purchase. In other words, they worked with a mortgage professional to take out a home loan as opposed to buying outright with cash.
And when looking at just first-time homebuyers? That figure shoots up to a whopping 91%.
A home is probably one of the biggest purchases you’ll ever make. So, if you’re financing, you want to ensure you have the right team on your side. That includes finding a great mortgage pro who may be closer than you think…
As it turns out, shopping local for your mortgage comes with a whole host of benefits, including:
Let’s start by clarifying what it means to shop local and then take a closer look at each of these unique advantages.
You’ve probably heard the term “shop local” before, whether in the context of holiday gifts or your neighborhood farmer’s market.
Shop local: An encouragement for consumers to support the small businesses in their town or city whenever possible. Shopping local can stimulate economies by keeping cashflow in the immediate area, create local job opportunities, and stimulate growth and innovation.
Maybe you already shop locally for artisanal honey at your nearest farmer’s market, or rely on the experts at the neighborhood hardware store to help you with your home projects. In the same way, you can turn to your local community when looking for a mortgage.
In the context of mortgage lending, “shop local” translates to exploring working with the mortgage professional down the street (or even across town) as opposed to a big, national, or online provider.
Don’t worry — shopping local isn’t only about benefiting the businesses. There are some real advantages for consumers just like you, too:
The mortgage professionals in your area will have real-world, boots-on-the-ground knowledge.
Instead of checking charts and stats to get a feel for your area, they’re living in your same neighborhoods, dropping their kids off at the same schools, and navigating your same tax landscape.
This could mean a stronger homebuying strategy, more personalized service, or maybe even future savings.
Have you ever tried to set up a Zoom call with five different people in five different time zones? It is no small feat.
When your mortgage pro lives and works nearby, your hours will probably be much more similar. This means questions may get answered and documents could get processed that much faster.
Not to mention, face-to-face meetings are a possibility for those who prefer working in person.
When you work with a local, they have a stake in your community. In other words, a vested interest in building or maintaining a good reputation.
On the other hand, when you work with a bigger provider outside your community? All that’s really at stake for them might be one negative review — a drop in the bucket.
Opting for a local biz might increase the odds that you receive honesty, transparency, and personalized, longer-term support.
The smaller entrepreneurs in your market probably have nowhere near the marketing power (or budget) that big, national providers enjoy.
This can make shopping local a little harder, but still worthwhile! There are a few key steps you can take to increase your odds of finding a stellar local partner:
Start your list of potential mortgage pros with your own research. Consider:
Once you’ve done some initial legwork, it’s time to turn to the people you trust.
Check in with your friends, colleagues, family members, and anyone you might know in the real estate industry. Has anyone had an especially impressive experience with one mortgage pro or another? Add any new names to your list.
Now, it’s time to narrow things down.
Start by comparing each professional. How are their online reviews and testimonials? Do they have experience with homebuyers like you? How about in your neighborhood of choice? See if you can rule out any options this way.
Then, set up interviews with whoever’s left. Meet each mortgage professional in person, if possible. Review their credentials and ask any pressing questions. Write down or otherwise record the answers, and don’t be afraid to ask for some time to think before committing to anyone.
It’s a good idea to compare at least three different professionals, to get a feel for who you best click with.
Once you’ve decided, let your mortgage pro of choice know.
Friendly tip: It’s also kind to give the others that didn’t ultimately earn your business a heads up, so they don’t spin their wheels trying to reach you.
Then, it’s time to start the homebuying process with this new local advocate on your team!
If you choose to shop local for your home loan, you might just enjoy more personalized service, greater understanding of your needs within the community, and an overall improved experience.
And, hey, it may not be artisanal honey, but that’s still a pretty sweet proposition.
Happy shopping!