Buying a house comes with challenges. Finding a reputable lender who will be in business throughout the life of your loan is among those challenges. To find a reputable lender, it’s important to pay attention to your gut. It’s also important to get to know financial institutions before you enter into a contract that could be binding for up to 30 years. Ease of account access, trust, secure payment methods and open communication are key features that a reliable lender brings to the table.
Your most trusting financial relationship might be right under your nose
Trust may be one of the biggest factors that determines whether a lender and you enter into a mortgage agreement. If you currently have a bank account, you may have already developed the level of trust that you need with a solvent lender. But,whether that trust will yield a mortgage that saves you big while profiting your lender at the same time depends on several factors.
Banks are direct lenders, potentially saving you third parties fees. Take out a mortgage through your local bank and you won’t have to get familiar with a third party financial institution to finalize your mortgage or submit monthly payments.Additional benefits that are associated with a home loan through your local bank include:
- Established relationships – If employee turnover at your local bank is low, you might have been transacting and communicating with bank managers who will review your mortgage application for several years.
- Ability to combine debts and accounts – You could save on fees simply because the bank bundles your mortgage with an auto loan and a student loan or a small business loan that you took out before you bought your new house.
- Lower interest rates – This isn’t a given. Ask about interest rate deals that the bank is offering on first or second mortgages. Because you already frequent the bank, there’s a good chance that you’re already aware of existing and upcoming mortgage deals that the lender is running.
- Nearby locations – Since you currently do business with the bank, you know where branches are. You won’t have to hunt fora branch that’s close to where you live or work.
- Bank operation knowledge – No one has to teach you how to make online or in-person deposits, withdrawals or payments. You also know how long it generally takes for checks to clear at the bank.
- Single point of contact – Take out a mortgage with your local bank and you won’t have to open and manage another account to make your mortgage payments.
Get a mortgage through your local bank and you could reap the same benefits that lenders seek from their customers. That benefit is a loyal relationship with someone who you trust. To gain the most from the relationship, enter a mortgage agreement with your local bank when the bank is running a mortgage interest discount special. And take advantage of customer loyalty deals.