We cannot stress enough the importance of using a local lender when you mortgage the purchase of your new home. Using a local lender for your mortgage will make your closing much smoother. The closing period (the time between when your offer is accepted and the actual closing taking place) can be very stressful. You need to complete a home inspection, sign a purchase and sale agreement, and perhaps complete a “Title 5” septic inspection among other activities. All this must be completed successfully in a short time to be sure your closing is to take place as scheduled.
Even if you are “pre-approved,” once your offer is accepted, you need to make a formal application for your mortgage loan. In most cases you will not be able to make formal mortgage application unless you have a signed accepted offer in hand. After your application is complete the lender needs the have the property appraised and gather other confirming documents before you get a commitment letter that your mortgage has been officially approved.
If you use a local lender you will have personal first-hand access the people underwriting your loan. You will be able not only talk to them on the phone but meet with them in person and deliver the required documents personally if necessary. This all works to keep your loan on track to approval. Local lenders use local appraisers and local appraisers work quickly and know best how to estimate the value of local real estate.
Your closing attorney will also recommend you use a local lender. A mountain of paperwork must pass from your lender through your attorney and back again to have a successful closing. Ask your attorney if they would much rather work with a local lender.
We have provided links to some local mortgage lenders that work in the greater Northampton area. The lenders are listed alphabetically. You should contact several mortgage lenders and compare what they have to offer. Many lenders offer special programs that run for a limited time or are for first time homebuyers. Call as many as you feel necessary to find the right mortgage loan for you.