Top Reasons to Get a Mortgage Locally

You’ve spent years saving up for a down payment, toured more houses than you can count, and have finally found the home of your dreams. So: Where will you get your mortgage?

This is likely the biggest purchase of your life. Shouldn’t you put as much care into choosing your mortgage partner as you did in finding your home? Going with the biggest brand-name lender you can think of may be easy, but it’s not necessarily going to get you the best result. Think closer to home: Going with a local lender often delivers big benefits that will pay off now and in the future.

Competitive Rates

Bigger lenders don’t always mean better savings. National institutions have shareholders to reward with profits and multi-million-dollar marketing budgets to support. (Which, come to think of it, are one reason why you may already know their name.) Local lenders have lower overhead and often offer rates competitive with larger institutions.

You could also consider a credit union. These nonprofits answer to members, not shareholders, and return earnings through lower loan rates and fees.

Support the Local Economy

When you bank with a local institution, you’re keeping money in your community. The money you’ll borrow comes from other local depositors—and the money you pay back to the bank will ultimately get loaned to another local family or business. That creates jobs and strengthens the local economy.

Flexible, Personalized Loan Decisions

Big banks have systems and protocols that are often set in stone. If your finances don’t meet their rigid ratios, or if you’re self-employed or have another non-traditional source of income, you may not qualify for a loan. Smaller institutions, though, are often more flexible and willing to be more creative in finding ways to say “yes” (rather than automatically saying “no.”)

Faster Approvals

Larger institutions often rely on external underwriters to consider your mortgage application. Local lenders typically do this work in-house, which often results in a faster decision.

Personal, Face-to-Face Service

If you have a question about your mortgage with a national lender, you’ll likely be working with a customer service agent (or, increasingly, an AI bot) in some far-away place. When you work with a local lender, though, you’ll be able to meet in person with somebody who can talk to you about your account—or work through your options if you encounter repayment difficulties.

Work with a Local Expert

Closing on a real estate purchase can be stressful, even when everything goes smoothly. Hometown institutions typically have relationships with local appraisers, title agencies and other key players in the homebuying process. And because they’re familiar with the real estate market in your community, they’re also able to provide valuable insight as you work your way to closing.

Build a Lasting Relationship

You’re putting down roots. Someday, you might need a car loan or a home equity line of credit, or want to refinance your mortgage. If you already have a relationship with a lender who knows your situation and payment history, that can help. But that relationship is a two-way street: While many larger institutions will sell your mortgage to a different servicing company within a year, your account—and your continued patronage—are considered valuable assets that local institutions want to hold onto.

Should I Get a Mortgage Locally?

Choosing a lender near you can save you money, but just as importantly, it can help you build a partnership that will last for years. A hometown lender like Adirondack Regional FCU understands your situation and your community in ways an out-of-area institution just can’t.