Is it better to go with a local institution for financing?

[ArmyStrong]

I've compared as best I can, two "estimates" from USAA and SunTrust. The two do not seem that far off and I'm wondering if going with the local bank would make the process simpler, all else being nearly equal. Things such as getting the appraisal and such things done with local contacts, I'm told would make the process quicker. I thought USAA would be MUCH better, but doesn't really seem to be.

[DallasLoanGuy]

local is overrated.

i sometimes do not see my clients until closing(and never for out of town deals). we fax and email everything. pita to drive across town to pick up documents.

 i have never had a case where location affected a deal.

the two lenders you posted are good. dont let a realtor steer you.

[Anonymous]

If your lender is out of state, how is the closing handled?  Do you get a representative local to the deal to stand in? 

[ArmyStrong]

Thanks Dallas. My agent isn't steering one way or the other, although sometimes I wish she would :-) It's the local of course, touting the benefits of being local, like having local contacts making the process move quicker etc.

[BrianB_The_Loan_Professor]

I agree with Tom

even when local we are usually doing loans via fax and email and rarely see a client

probably 90% of my business is out of state and the process is the same

to answer the second question about how it is handled

you will be dealing with a local title company or attorney on a purchase

in some cases with a refi it will be a national title company but they will usually involve a local company to handle the signing

With technology the way it is everything is a click of a button

[Watchmann]

When I shopped for a loan the locals told me that 'things are different now' in that they don't hold the mortgages and everything is done via fax or internet.  The local banks were more than I what I found elsewhere.  On closing day they just told me which Title Company to go to and I signed the papers and got the keys the same day.  Go for the best financials, the rest will take care of itself.

[Imhotrodcrazy]

Personally, I have always financed locally.  I want to sit and talk face to face with the person I am doing business with, especially if there is a problem down the line.  This may seem old fashion to some, but that is how I have always done  business and it has worked very well for me.  In addition, I like to be able to deliver my payment in person if I so choose.  Also, IMO, local banks seem to have a better handle on values in their area from my experience.  I have seen  many times where an out of area bank will send their approved  "out of area" appraiser which does not know the local market as well.  I say this after having been an appraiser for over 20 yrs.  Which ever way you decide to go, I wish you good luck.

[fishbjc]

My cousin has a 30 day late on her file within the past year, she spoke to a small local bank with just a couple of branches, she cleared automated underwriting.  So far, so good.  If something else happens, she does have full cash to buy condo, but sometimes small banks can be a blessing.

I didn't find this to be true in my case, however!

YMMV I suppose.