Keeping it Local


I sure keep getting great ideas when blog readers send in questions! I got another great one the other day from Debbie who wanted to know the importance of using a local lender for a purchase. She had been told, erroneously, that it wasn’t OK to use a San Jose lender for her purchase because that lender was out of the area. Here’s my opinion…I think it very well could be a mistake to use an out-of-area lender for a purchase around here. I also think that San Jose is local!

This is a very tech friendly environment we live in around here and it’s not an uncommon notion for many folks who are employed by technology firms to want to use an online lender for their purchase. Unfortunately, I’ve had more than one escrow disaster when a buyer has insisted on using an online lender…who often is located outside of California. They’ve proven to me to be slow to respond and unfamiliar with local customs. I really think it’s important to have a representative in this area that can handle the inevitable bumps that occur along the path to closing. I remember one poor buyer who found a lender in up state New York online and paid them the loan points up front to get him a loan. Ten days prior to closing they couldn’t find his file when his agent called! He was forced to abandon his already paid fee so that he wouldn’t lose his deposit as he approached a closing that no one was sure was going to happen. He had to change lenders to BofA locally…who closed it a few days late.

I also had a recent request from a buyer to use an online title company to complete our transaction. I actually had never heard of such a thing…but we talked his agent into using a local firm for that. I can’t imagine wanting to send a $30,000 deposit to a Title company that’s not even in the Bay Area.

I think most agents have folks they trust who they know can get the job done. As buyers you sure have plenty of choices but keeping things local is, most likely, going to save you enormous headaches in the long run.


  1. definitely! local is the way to go.

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