Small Business Owner · Fallston, MD · Member since 2014 · 145 posts · 20 votes
In order to get a loan, should I go with a local bank or a major chain bank (PNC or Suntrust that I currently bank with) or should I go to an out of state lender that has excellent reviews on Zillow. The loan is not for a property that needs to be rehabbed so whether I am eligible to get a residential loan from one or another isn't the issue here. It's a livable house (needs minor interior repairs). So either way knowing my income to debt ratio, credit score and other necessary requirements I will easily get approved for a loan from either of the resources.
Is it really that important to build relationships with local banks even if the underwriter from local bank as well as a lender found from zillow will go by the documentation for the most part whether it's my first property or tenth.
Any comments are appreciated. Thank you.
This is just my personal preference... I like working with local banks more than national/out of state banks. Two reasons: One, I can have real face time with the person in charge of my loan and underwriting process. Possibly even the servicing of the loan. Two, it does build that relationship with the local bank which COULD help down the road for your 'tenth' property acquisition.
Somethings to consider however- Local banks do not always have the man power to service their loans so yours may be sold to a secondary mortgage company. (Don't get me started on some of the nightmares I have witnessed/heard about with this practice) Also, if you follow or are interested in the macroeconomics of keeping your money and its borrowing power in the state you are in, that has an impact as well.
This is just my personal preference... I like working with local banks more than national/out of state banks. Two reasons: One, I can have real face time with the person in charge of my loan and underwriting process. Possibly even the servicing of the loan. Two, it does build that relationship with the local bank which COULD help down the road for your 'tenth' property acquisition.
Somethings to consider however- Local banks do not always have the man power to service their loans so yours may be sold to a secondary mortgage company. (Don't get me started on some of the nightmares I have witnessed/heard about with this practice) Also, if you follow or are interested in the macroeconomics of keeping your money and its borrowing power in the state you are in, that has an impact as well.
If the house is in livable condition you have more options open for lending wise. There are so many lenders who offer renovation loan but there are few who are expert in this product. I understand you may have perfect loan scenario but when you need to contact with your lender you need their direct contact phone# and some time you have to meet them personally.
Thank you everyone for the input. Hoping to get some more responses though. Hello Maryland! Hello Baltimore, this should get some keyword alerts going. 😁.
It really depends on what kind of loan you're going for. What type of property? Are you trying to get a portfolio product from a local bank? Many local lenders like banks will be glad to work with you if the product you seek is vanilla for a vanilla property. Then there are other lenders that may specialize in the not so vanilla product and property and you may have to go to a broker to use them. There are others that can only go full doc and will cater to the borrower who has been in business forever with great credit etc... and then there are others that only do no income verification loans, that stretch the boundaries when it comes to seasoning of funds and only require source etc...
There are a lot of questions and a lot of factors that go into which lender should I choose and a thread on BP is just the beginning.