Transactions involving a lender outside our local area have been a nightmare! Here on the Outer Banks of North Carolina the market is mostly second homes, retirement homes and/or investment properties, especially in Southern Shores, my area of speciality. In most cases, my buyer and seller clients do not live here. Because of the logistics, sometimes a client will want to use “their bank” in their own hometown to purchase property hundreds of miles away. That is when the trouble begins.
Here are the reasons I argue for using a lender familiar with the area of the subject property.
- Appraisals have become more complicated as they are more closely regulated. An appraiser sent by a lender not familiar with the area will hold up the transaction and/or not be able to appraise so another appraiser is sent. Deals die this way!
- Lack of local market knowledge is harmful. It has been my experience that local lenders have an intimate knowledge of their own area which positively influences their decisions. Especially in coastal areas, knowledge of local geography, flood zones, etc. is critical.
- Difficulty gaining access to decision makers can be a deal breaker. We all have relationships with our local bankers. It is such a waste not to be able to call on these folks for assistance. . The lenders I suggest to my clients are the best in every way and enhance the experience for everyone.
- Our clients don’t get all the services we can provide when the lender is not part of the local team. I find my hands are tied when my clients really need my help.
- Finally, on-line lenders are just another breed altogether! I don’t even know where to start with this one.
I would love to hear about your own experiences in this area. Perhaps you have some tips for me to use when I must deal with non-local lenders! Thanks!
