Should you use an local mortgage lender or out of state or online lender when buying a home in Arizona?
As more and more people are relocating to Phoenix, I always get to ask by out of state home buyer, can I use my lender in my current town? In other word, buyers from California is asking whether they can used their lender in California or an online lender? Well, there is no law that prohibit from using lender in California or online lender, but as a Realtor, I always recommended to use a lender in Phoenix. Here are the reason why you should consider using local lender when getting a mortgage.
Local purchase contract
There are many aspects of our real estate contracts that non-local lenders may not be aware of and that may cause a snag in your deal. For example, Arizona residential purchase contracts declare time is of the essence, so your deadlines are exactly as written in the agreement – there are no automatic extensions as there are in many states. If your lender misses your mortgage commitment date because he doesn’t realize this, the seller could terminate your deal and you could lose your dream house.
Local form
There are some local forms need to be completed by lender such as Arizona Pre-Qualification form and Arizona Loan Status Update form. These form are only available to local lender that join the board. The lender is require to provide update on the process from time to time by filling the Loan Status Update form.
Local closing process
The real estate closing process is different in every state. Some states close the deal and exchange money at the closing table. In Arizona, the contract states where everything is signed and deposited into escrow and the transaction officially closes when the deed gets recorded. A lender who doesn’t regularly do business in Arizona is likely to make mistakes which will cause delays in closing.
Local expertise
Besides knowing the area and local real estate market, a local lender will appear more attractive to certain home sellers and real estate agents because of the importance of a timely closing and a smooth process. In a situation where several offers are on the table, having a local, trusted lender could be the difference between landing the house or not. Some sellers and real estate agents may not even consider offers from national banks or online lenders because of previous bad experiences, or because of the bad reputations some of these lenders have.
Reputation
Local lenders and real estate agents have an incentive to provide you with excellent service because they want you to be a source of referrals for future business. They know that whether you have a great experience or a bad one, your friends and relatives are going to hear about it. These people live and work in the local area, and thus, it is their reputation and livelihood that is at stake.
Conclusion
Not all lender are the same. Be sure to interview the lender when applying for mortgage. You want to have a lender on your side and work hard to ensure the transaction can be completed. The last thing you want is the lender that unable to perform and you may lose your dream home and earnest money.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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