Local Lending vs Big Banks: What You Need To Know!

Posted by Austin Shumaker on Jan 25, 2019 9:16:49 AM
Austin Shumaker
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Some of you may be familiar with receiving emails from your current banks such as Chase, Iberia, or HomeBank regarding your “pre-approval” for mortgage lending through them.

And while this may seem like good news for those of you currently looking for lending options, going with the big banks as opposed to a local, private lender, could pose some hidden problems that most aren’t aware of in the lending world.

These pitfalls commonly come disguised as:

  1. A lower monthly payment on your current mortgage
  2. Pre-approved lending for a new Home
  3. Or cashing out of your home’s equity at a “low” percentage rate


What most people are unaware of is that on this specific deal, you would be paying 1% of the "would-be" loan amount in "points". I.e you're paying to achieve an interest rate.

Most people don't think that's an option. It is actually more of a requirement with these big banks.

Larger banks as a whole (especially when compared to small, more personal lenders):

  • Are not local (they only know you as a number, not by name)
  • They have no clue about our regional demands because they are stuck in a large skyscraper in NYC
  • Most large banks don’t deal strictly with mortgages. This means that they are “able to” but do not specialize in them.

So, if you don’t go with one of the large banks, what are your other options?

Easy! Go local when shopping for your home loan.


Local lenders, such as Louisiana Home Lending, are brokers. That means that we shop for the best rates and terms for you. It makes no difference to us who the loan goes to as long as you, the customer gets the best rate.

We offer a simple, easy, and smart process.

That means less stress, lower rates, and more house for your money.

Would you rather be sold or educated on your next mortgage?

That’s what we thought.


Contact Us


Topics: Interest Rates

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