I found local banks generally easier to deal with, yeah. A few quick thoughts from my experience:
- Local banks had clearer communication overall. I could actually talk to someone face-to-face if things got confusing, which was a huge plus.
- Online lenders did offer slightly better rates, but the customer service was hit-or-miss. Sometimes I'd get quick responses, other times it felt like pulling teeth just to get a simple answer.
- One thing I noticed: online lenders often had stricter documentation requirements. Not necessarily a bad thing, but it meant more back-and-forth emails and uploads.
- Local banks seemed more flexible with timelines and paperwork. When we ran into a snag with our appraisal, the local bank rep stepped in quickly and smoothed things out. Not sure an online lender would've been as responsive.
Overall, I'd lean toward local banks for peace of mind and smoother communication, even if it means paying a tiny bit more in interest. But everyone's mileage varies...
Good points overall, but curious—did anyone here try negotiating with their builder's lender directly after construction wrapped up? I've heard mixed things about how flexible they can be once the build is done. Wondering if they'd budge on rates or fees to keep your business, or if they're pretty set in stone at that point...
From my own experience, it's definitely worth giving it a shot. Builder lenders usually have less flexibility once construction wraps up, but they're not totally inflexible. I've seen them budge a bit on fees—rates, not so much. They're often more willing to waive certain closing costs or fees to keep your business, especially if you have a competitive offer from another lender in hand. It helps to shop around first and then use those offers as leverage.
But honestly, don't expect miracles or big drops in interest rates. At this point, their incentives to negotiate are pretty limited. Still, every little bit counts, right? Doesn't hurt to ask and see what they can do for you. Good luck.
"They're often more willing to waive certain closing costs or fees to keep your business, especially if you have a competitive offer from another lender in hand."
This was exactly my experience. Builder's lender matched some fees when I showed them another offer, but rates didn't budge at all. Definitely worth shopping around...just don't expect huge savings.
Totally agree with your take here—fees are usually the easiest thing to negotiate. Rates are a different beast altogether, lenders rarely budge much on those unless there's a big market shift. Had a client last year who managed to save a bit by shopping around, but honestly, the real win was just feeling confident they'd done their homework. Good for you for taking the extra step...it always pays off one way or another.
