Funny you mention that—I've had clients call me in a panic after hitting a wall with online lenders. Rates look great on paper, but when things get tricky, having someone local to hash it out with really does make a difference. Sometimes you just need a real person to walk you through the mess.
I’ve noticed that too—clients often get lured in by those ultra-low teaser rates online, but the moment there’s a hiccup (like a weird appraisal or a self-employment income question), things can stall out fast. It’s not just about the rate; it’s the process and how issues get resolved when the unexpected pops up. I’ve seen situations where a local lender was able to get creative with documentation or even pick up the phone with an underwriter, while the online guys just sent another generic email.
Curious if anyone’s actually compared the total cost of working with an online lender versus a local one, factoring in things like closing delays or extra fees? Sometimes the “cheaper” option on paper ends up costing more in headaches or lost deals. Or maybe I’m just old school and overthinking it...
Sometimes the “cheaper” option on paper ends up costing more in headaches or lost deals.
Had a client last year who went with a big online lender for the rate, but their closing got pushed back twice over minor paperwork issues. The seller almost walked. Local lenders aren’t always cheaper, but they’re usually quicker to fix things when it matters.
I’ve seen this play out more than once. On paper, the big online lenders look great—lower rates, flashy apps, all that. But when you’re up against a tight closing window, those little delays can be brutal. I’ve had deals nearly fall apart because someone at a call center missed a document or didn’t respond fast enough. Local lenders aren’t perfect, but nine times out of ten, I can get someone on the phone and sort things out in real time. Sometimes paying a bit more upfront saves a lot of hassle down the line.
I get where you’re coming from, but I’m curious—how often do those delays actually happen with online lenders, compared to local ones? I’ve seen local banks drop the ball too, especially if you’re not working with their “favorite” agent. Is it really about location, or more about how organized the lender’s process is? Sometimes I wonder if we focus on the wrong variables when shopping for a loan. Lower rates can be a big deal over 30 years... but yeah, getting stuck at closing is a nightmare.
