By Malvern Bank, National Association

On March 3, the Board of Governors of the Federal Reserve System cut interest rates by half a percentage point. In addition, on March 15, they cut interest rates by one percentage points.  Both of these cuts were pre-emptive moves to protect the economy from the coronavirus.

One of the results of this action is that consumers are rushing to take advantage of low interest rates by entering the housing market or refinancing their current mortgage loans.

It often seems you can get a mortgage just about anywhere: banks, mortgage banks, mortgage brokers, online mortgage sources, and more. For more than two decades, online mortgage companies – led by Quicken Loans – have been a popular option in the home loan industry.

Still, community banks remain a popular choice for many seeking a mortgage loan or to refinance an existing loan. Here are some of the advantages of doing business with a brick-and-mortar community bank:

• Face-to-face, eye-to-eye: When it comes to big financial decisions, some people just feel more at ease doing business in person with someone they know. There’s a greater comfort level when you’re able to look people in the eye when getting advice. And, if there are any problems during the application process, you can go to a community bank’s branch office to sort it out in person.
• Local knowledge: Community bankers know the local area and often have existing relationships with local Realtors. This can be most helpful especially to the first-time homebuyers or to those newer to an area anticipating relocation.
• One-stop shopping: When it comes to financial services, it’s often a major advantage to obtain several services from a single provider. And, it’s not just a matter of convenience (e.g., you can maintain your checking and savings accounts with the same bank that holds your mortgage). It also can be easier to get new or additional financial products and services from an institution that already knows you: certificates of deposit, IRAs, credit cards, automobile loans – even insurance.
• Flexibility and customization: Most online lenders have a wide selection of loan products, but often they don’t offer much flexibility in terms of whether or not you qualify for a loan. Also, they may lack the ability to customize a product to find the best fit for you.
• Local community banks don’t take a one-size-fits-all approach. Community bank lenders take into consideration your unique circumstances and find a loan program that best meets your needs. And, if you find you’re not quite ready to purchase a home, lenders at community banks can provide financial counseling to help you get ready. This is not something you’ll find at an online mortgage provider.
• Building community: When you make payments to a nearby community bank, there is a good chance it will take that money and lend it to other individuals and businesses in the area. Smaller banks also tend to support local events and charities, thus bolstering the local community.

So, if you’re looking for a mortgage to purchase a new home or to refinance an existing loan, be sure to start with your local community bank. You can’t go wrong after you consider the competitive rates, numerous options and the many benefits of “dealing local!”

Malvern Bank is headquartered in Paoli and focuses on providing quality lending, deposit, and wealth management services to the community. For more information on Malvern Bank, National Association, please call 610-644-9400 or click here.