Getting a loan -Local Bank/Out of state Lender

[Lakshay G.]

In order to get a loan, should I go with a local bank or a major chain bank (PNC or Suntrust that I currently bank with) or should I go to an out of state lender that has excellent reviews on Zillow. The loan is not for a property that needs to be rehabbed so whether I am eligible to get a residential loan from one or another isn't the issue here. It's a livable house (needs minor interior repairs). So either way knowing my income to debt ratio, credit score and other necessary requirements I will easily get approved for a loan from either of the resources. Is it really that important to build relationships with local banks even if the underwriter from local bank as well as a lender found from zillow will go by the documentation for the most part whether it's my first property or tenth. Any comments are appreciated. Thank you.

[Jennifer Hicks]

This is just my personal preference... I like working with local banks more than national/out of state banks. Two reasons: One, I can have real face time with the person in charge of my loan and underwriting process. Possibly even the servicing of the loan. Two, it does build that relationship with the local bank which COULD help down the road for your 'tenth' property acquisition. 

Somethings to consider however- Local banks do not always have the man power to service their loans so yours may be sold to a secondary mortgage company. (Don't get me started on some of the nightmares I have witnessed/heard about with this practice) Also, if you follow or are interested in the macroeconomics of keeping your money and its borrowing power in the state you are in, that has an impact as well.