It has been my experience that when the purchase of a property does not go through, most often the deal breaks on the buyers ability to gain financing.  It is relatively easy for buyers to gain a pre-approval letter to purchase a home.  Yet, after the process gets started, financial institutions ask for more and more information.  Especially after the housing crisis in 2008 lenders demand near granular details and past history from home buyers. If there is one consistent complaint from home buyers, it is that lenders often ask for the same information two and three times during their process called “underwriting.”  Underwriting is where the buyers ability to pay back the mortgage is scrutinized as well as the condition of the home that the bank is helping the buyer purchase.

Local Vs. Online

As the millennial generation steps into home buying, it is noted that they preference is toward online banking. Other generations as well often like the convenience of interaction with systems on the internet. When it comes to purchasing a home, I highly recommend that buyers choose a local mortgage provider though. Although online may feel less personal and more safe, a local underwriting process helps buyers navigate vs dealing with an impersonal national company.

The underwriting process is personal.  As such, it is important to have an advocate alongside you that you can meet with face to face.  The local professionals are more accountable to buyers. An automated underwriting system has chewed up and spit out more than one unsuspecting buyer hoping to get the home of their dreams.  When the relationship is good, I can tell you that is really rare to see a deal bust on the buyer’s ability to get financing.  Appropriate questions are asked and obstacles are more easily overcome with local lenders who do their underwriting locally.

In addition, the relationship between a local lender and the real estate broker is much more effective.  They share the same goal, to make sure the closing happens on time and efficiently.  By the way, I only accept compensation set forth in the real estate contract.  We do not accept compensation from any local or national lender. The best thing for all parties in a real estate transaction is clean, high quality relationships who are committed to integrity.