In 2014, I wrote a blog called “6 Reasons Why You Should Use a Local Lender“, and we at The Cameron Team continue to stand by that business belief. Not every non-local lender is difficult or harmful to your transaction, but we continuously have better experiences overall with local lenders. To build on what was said in that original blog post, we wanted to share one more reason why you should use a local lender when buying a home – one that isn’t obvious until a natural disaster like a hurricane strikes.
We are located in Coastal North Carolina, and recently received a direct hit from Hurricane Florence. Since the storm, multiple buyers using out-of-state lenders have learned that their lender will not close out or fund loans in our area for another 6 months due to it being designated a Federal Disaster Area. That’s half a year that said buyers would have to wait to purchase their home!
As this has happened, local mortgage bankers have stepped up to help secure new loans for these buyers. How can they do this when others can’t? They know the area. They know the homes and communities that are being invested in. Out-of-state lenders do not. To them, it looks like a big hazy area of uncertainty and that’s not sound investing. But to local lenders, they know which areas are fairing well and have realistic expectations of how recovery will go.
If you are currently under contract on a home in a disaster area (as we currently are in Wilmington at the time of this post) and are using an out-of-state lender, make sure you check with them to make sure that your loan can be funded as originally scheduled. If not, contact a local lender. Your agent should be able to supply you with a few names and numbers.
We at The Cameron Team are always happy to share the names and numbers of local lenders that we’ve worked with in the past. Don’t hesitate to reach out to us. Securing financing should always be the first step in your home search.
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