Blog Post

Millions of people every year flock to big online mortgage lenders or banks to finance their new home. Online mortgage lender’s speed, accessibility, and well-known reputation are all great bonuses that make financing through them a viable option. However, there are significant benefits to financing through the local mortgage lender that are worth some consideration and could save homebuyers a ton of money.

More Savings

High interest rates and mortgage fees can put a major dent in your budget and eats away at the earned equity that you are building with your new home. Competitive local mortgage lenders often offer lower interest rates and less fees than their bigger digital alternatives. In 2024, MembersAlliance saved members $1,133/year on 15-year mortgages, $1,024/year on 30-year mortgages, and $1,175 on closing costs compared to other area banks.¹ The chance to save over $1,000 every year on your mortgage is worth exploring.

In addition to the average savings you could see, there are options for homebuyer’s downpayment assistance now being offered at MembersAlliance to help overcome barriers to home ownership. Up to $10,000 in downpayment assistance is offered to qualifying homebuyers.²

Local Service & Servicing

Choosing a local lender does not mean compromising on an easy digital experience. Many local mortgage lenders offer online applications and pre-approvals. The extra benefit with a local lender is in addition to the easy digital mortgage application, you can stop into a branch near you and discuss your mortgage application with your mortgage officer. They will be able to offer details and go the extra mile to get the best mortgage terms for you in a way that isn’t as feasible in a digital only format. Quality service accessibility continues long after your mortgage is processed and you own your home. Having a local lender close by to address any issues or to drop a payment off at a branch near you versus the hassle of having your loan sold between a variety of national mortgage servicing companies can be a real plus.

Flexible Terms

Depending on the local mortgage lender you choose, you may find that they have many different mortgage options to meet your specific needs just as any national mortgage lender would. Local lenders like MembersAlliance allow you the flexibility to choose from 8-30 year terms to get the most savings with a workable monthly payment.

Special mortgage types such as FHA (Federal Housing Administration), ARM (Adjustable Rate), and VA (Veteran Administration) mortgages are all available as alternate options to our conventional fixed rate mortgage at your local credit union.

With such a variety of mortgage options, most home buyers will find exactly what they need at a local lender with a dedicated mortgage officer who is on their side to find the right fit.

Keeping it local

Banking local keeps your money in your community. While getting your mortgage through a larger bank or lending service may have a small percentage that goes back into the community, most of those dollars will be spread throughout that bank’s other locations nationally. Local mortgage lending reinvests directly into your community.

Find the right mortgage lender for you

The best mortgage lenders are both easy to work with and save you more on mortgage costs. If your lender is attentive to provide the right mortgage option to fit your personal needs, and charges you less in fees and interest, that is a good sign you’ve found the right place to finance your home.

If you are ready to take the next step in your homebuyer’s journey, we have a staff of local Mortgage Specialists to help you on your way to home ownership.

¹Annual Savings information taken from 2024 CUNA Economics Statistics Membership Benefits Report. ² Downpayment Plus is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Please see the Federal Home Loan Bank of Chicago’s website at www.fhlbc.com for complete requirements. “Downpayment Plus” is a registered trademark of the Federal Home Loan Bank of Chicago.