Minneapolis, MN: Real Estate Agents are more likely to be credited as local neighborhood experts, while a mortgage Loan Officer is not, and the lender at the 1-800 phone number is OK to use.

In fact, it is almost always never in your best interest to use a lender who isn't relatively local.

Just like the Real Estate Agent, a Loan Officers knowledge and experience in the local community is extremely helpful in many ways.

Understanding challenges clients face in the local market, like if seller paid closing costs are commonly allowed or not allowed by sellers, and how to structure your loan program to deal with that. 

Setting proper initial estimates for items like taxes and insurance.  For example, a recent client was initially pre-approved, but left a big online lender who was estimating the clients home owners insurance at $800 a year.  I haven't seen $800 a year insurance in Minnesota for over at least a decade on a single family home. My estimate was $1700, more than twice the internet lenders estimate. The client wanted to know why my estimate was "so high". I asked the client to ask the internet lender why their estimate was "so low."  The internet Loan officer said "he was simply guessing" because he had no idea what it would be in the Minneapolis area. Ultimately the clients insurance was almost $1800/yr.

Many communities offer first time home buyer programs, and down payment assistance programs that internet lenders and outstate lenders simply can not offer. For example, a very popular Minnesota down payment assistance program requires the Loan Officer offering it to have taken a class on how it works to be able to offer it.  The guy in California isn't taking the class, and you may be missing out on a local program that may be very beneficial to you.

Finally, there is no interest rate or closing cost "deal" on the internet, or through some outstate lender that you can't get from the guy down the block, who lives in your neighborhood, supports your local community, goes to the same church or school, and actually knows your neighborhood without looking up on on the internet.

Stay Local.

Apply with Cambria Mortgage, St Paul, MN Office