Why Working with a Local Lender Matters (and Why Your Realtor’s Referral is Worth Considering)

Why Working with a Local Lender Matters (and Why Your Realtor’s Referral is Worth Considering)

When you’re buying a home—especially your first—it’s easy to focus on the property itself: the neighborhood, the finishes, the yard. But just as important as the home you choose is the team you have helping you get to the closing table. And one of the key players on that team? Your lender.

Why Choose a Local Lender?

There’s a big difference between a local lender and a large, out-of-state or online-only lending company. Local lenders are more in tune with the housing market in your area, understand the local underwriting guidelines, and often have personal working relationships with title companies, appraisers, and even your agent. That familiarity makes the process smoother—and in real estate, smooth matters.

When you’re in a competitive market, response time and reliability from your lender can mean the difference between landing your dream home and losing out to another buyer.

A Local Lender Can Help You Compete

Here’s the reality: when multiple offers are on the table, sellers and listing agents often favor offers backed by lenders they know and trust to perform. A local lender with a strong reputation can give your offer a competitive edge. Why? Because they’re known for clear communication, accurate pre-approvals, and on-time closings.

Unfortunately, not all lenders offer that kind of service. Some buyers have had deals fall apart at the eleventh hour due to delays, miscommunication, or unmet conditions—often with national or online lenders who don’t have a local presence. That’s a stressful (and costly) situation that everyone wants to avoid.

Your Realtor’s Preferred Lender: Not About Kickbacks—It’s About Confidence

You may hear your Realtor suggest a lender or two they’ve worked with before—and here’s the important thing to know: it’s not because they’re getting paid to do it (in fact, that would be a RESPA violation). It’s because they’ve seen firsthand how those lenders perform.

When your agent recommends a local lender, it’s because they’ve built a relationship based on trust, experience, and successful closings. They’ve seen them pick up the phone on a Sunday, problem-solve a tricky file, and communicate clearly when timelines are tight. That kind of partnership helps you, the buyer, have a smoother experience and get to the closing table with fewer surprises.

The Wrong Lender Can Derail a Deal

Here’s what can go wrong with the wrong lender:

• Slow response times during a multiple-offer situation

• Incorrect pre-approval letters based on outdated or incomplete information

• Last-minute underwriting issues due to miscommunication or oversight

• Missed deadlines, which can result in canceled contracts or lost earnest money

All of these issues create stress and can even cost you the home.

Final Thoughts

At the end of the day, the choice of lender is yours—and it’s an important one. But don’t underestimate the value of a local lender who understands the market, communicates proactively, and has a reputation for getting deals done. And when your Realtor offers a trusted referral, it’s not about what’s in it for them—it’s about setting you up for success.

Need a referral to a local lender who’s known for getting it done right the first time? I’ve got a few trusted professionals I’d be happy to introduce you to. Let’s make sure your home buying journey is smooth, secure, and successful from day one.

Anna Thocher is committed to Fair Housing. We do not discriminate based on race, color, religion, national origin, sex, disability, familial status, or any other protected class under federal, state, or local law. All buyers are encouraged to choose the lender that best suits their individual needs.