We often have buyers ask us if there's any type of problem with them using a lender from LendingTree.com or other lenders which aren't local. The answer is complicated, but then again, that's why you're here reading this FAQ, right? So let's delve into the issues:

The first thing to know is that at the end of the day, many, many lenders will be able to provide you a loan. Your job is to pick the one that's best for you, and it's our job to give you the knowledge and advice to make the best decision.

It really doesn't matter if a lender is local or remote, as long as they can live up to their word. The "living up to their word" is were problems oftentimes crop up. We (and most Realtors) much prefer using local lenders because when there are problems, we can easily fix them.

So, what kinds of problems could crop up, anyway? Here's an example, and as we see others we'll keep adding more examples to the bottom of this page. In this example, the buyers decided to go with a lender that our agent didn' t know because they were getting a slightly better rate. Four days before closing, the lender dropped this bombshell:

From: Jane Doe Lender Sent: 27 July 2007 17:09

To: Jack and Jane

Subject: RE: Some documents for my loan

Jack and Jane,

i may be on holiday but very connected here so we are pushing as hard as we can---underwriting takes time so Monday may be the day to get done--and trust me it WILL be done and closed --One glitch is that original second trust lender cannot handle the pounds for salary so we had to switch to CITI BANK where the rate is a bit higher at 9.5% but the good news you will have CITI for both first and second trust and once you get closed and have made a month's payment--you can go in and re-negotiate it--so this is a temporary situation and I will help you with it after we get closed...but this is the best solution to get to the closing table on time. Thanks for understanding. Always available by cell-- Jane Doe is working hard to pull things together and I am talking to her all day. We are indeed global.

In the email above, the lender is saying that she would not be able to honor the orignal second trust rate and the rate would be higher!

Another reason to choose a local lender is because when you're making an offer, having an approval letter from a local lender helps the seller feel more comfortable with your contract.