Benefits of local mortgage lenders

[Luke Terry]

Hello, I'm new to the Cleveland area and plan to reach out to local mortgage lenders.  What benefits do you see from using local lenders?  What questions should I be asking to make sure I take advantage of their potential expertise in the local market?

[Charlie MacPherson]

@Luke Terry A local bank or credit union is useful when you have a deal that won't pass muster with a standard loan.

Foe example, I recently sold a condo in a building that has 3 commercial units on the first floor, 7 residential upstairs. Neither FHA nor conventional loans would allow 30% commercial, so I went to a local lender and helped the buyer (who wasn't even my client!) to arrange a portfolio loan.

Those loans don't get sold on the secondary market and aren't subject to the same rules.  The local lender uses their knowledge of the market and value of the property to make their lending decision.