October 23, 2023
Some believe it’s better to buy local, even when shopping around for services like a lender for an FHA mortgage. This also applies in some cases to those who feel a real estate agent is necessary. Do you always have to use a realtor or local lender?
In some cases, the need for a local bank or a real estate agent is clear. But what about the house hunters who aren’t sure whether they need to use a realtor or the neighborhood bank?
When looking for an FHA mortgage, there are several choices to consider. And these issues go above and beyond some of the basics, such as the size and configuration of your new home.
Borrowers house hunting in the same area where they currently live may not feel the same serious need for a real estate agent as they would if they were moving to another state.
Should you use a local lender, online lender, or broker? The answer may depend on whether you already have a lender for other purposes and whether your local bank can make a competitive offer compared to an online one.
On Using A Real Estate Agent
Borrowers who feel comfortable dealing with sellers, negotiations, and other aspects of the loan may find a realtor more optional than those who have never tried buying a house.
But not all borrowers feel up to the challenge. If that describes you, consider using a real estate agent . Look for one with a local reputation who does well in local online reviews?
Avoid online reviews that do nothing but complain or heap praise on a service provider of any kind. Devote more attention to the reviews that mention specifics, and even more so if those more detailed reviews are within the last six months to a year old.
Beware a real estate agent who isn’t detail-oriented, misses essential issues, or who doesn’t seem to care as much as you do about certain aspects of the transaction.
Real estate agents who are detail-oriented and care about your house-hunting journey are the typically best agents.
Using A Local Lender Versus An Online Lender
The advice here is more situational. Borrowers typically want to work with the lender with the best home loan interest rates and terms. That might not be local lender.
You don’t have to use a local lender to buy your home. It may be more convenient in some circumstances to do so, but it is not required.
Some believe it makes a difference to “buy local,” but it may be time to explore your online options if you aren’t getting competitive rates from your local lender.
In some cases, a local lender is a smart choice if you want to use a local down payment assistance program. Why? Some of these rely on a local network of participating financial institutions to provide assistance local borrowers need.
House hunters may have better luck with a local lender in such cases. But your experience may vary depending on the circumstances.
But there are many variables, and it’s wise to explore and compare all your options accordingly.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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