Should You Use A Big National Bank or Small Local Bank for A Mortgage

Today we are going to talk about obtaining a mortgage from a big bank or getting that same mortgage from a local lender. And the benefits and drawbacks from each. When you're ready to buy your house, and you know you're going to need a mortgage, you have a ton of options. Just like there's lots of options for agents who can help sell your home or help you buy a home. There are almost more options for where to get a lender. We all saw the super bowl ad from Quicken Loans, and if you're in the industry, everyone makes fun of Quicken Loans because usually, a lot of times they're delayed. Their interest rates aren't actually what they advertise. Honestly, I prefer a local lender almost all the time. And a big reason why is most lenders offer exactly the same package as far as interest rates and the actual product.

It's not like Chase has a big, you know, section of different types of mortgage where a local lender won't have those same options. So, they have basically the same product. But where you really find the differences is in customer service. I always use this example. Early in my career, I was writing an offer at 10:15 at night. It was, I think it was a Saturday night and I said to my wife, “You know what? I'm working with a local lender who I admire and have worked with for years. I guarantee I'm going to have this preapproval letter before 10:30.” And sure enough, at 10:23, that letter hit my inbox. That's not going to happen. When you have a big bank, most big banks work bankers hours, and they don't care about your loan. You're just another number to them in their huge machine.

A local lender gets paid when your loan closes. The difference is you're supporting somebody locally versus supporting somebody out in Arizona or anywhere across the United States. Here's supporting a local business person with your mortgage dollars. The big reason a lot of people are enticed by national lenders is they usually advertise lower interest rates than a local lender will advertise. But when you really pull back the numbers and take a closer look, you'll see that usually, the local lender’s numbers are very much in line with those big bank numbers. So, for me personally, I'm always going to choose the local lender. The customer service is going to be outstanding compared to a big bank, and you're going to get basically the same product. If you have any other questions, click the link in the description and I'll talk to you there. Thanks.