Are Smaller Community Banks Better For Your Mortgage?

The article below from CNBC thinks that is the case.  There is some truth behind this logic.  I work for a small community bank, Great Florida Bank, and you would think I would be the first person to agree with this and/or use this as a sales pitch.  Well, I am not going to do that.  I personally like smaller community banks but that’s just me. 

In this current environment with low interest rates I have been seeing most offering very similar rates.  If someone is advertising or quoting a much lower rate than everyone else you better be careful.  There are probably additional fees involved or they are just doing this to lure you in.  If it seems too good to be true it probably is. 

Although you don’t want to pay .5% higher on an interest rate than what Freddie Mac is reporting for average interest rates, it isn’t the most important thing in my opinion.  How good is the interest rate if you don’t close on time and the rate lock expires or if it doesn’t close at all.  I have said this numerous times and will continue to say it, you have to deal with an expert no matter how perfect your credit, income, down payment, etc. are. 

No matter what you are buying (a service or product) you can always find someone cheaper but in the end you WILL get what you pay for.  Just keep that in mind.  Lastly, make sure you are dealing with someone locally because the rules and guidelines are different in every state, city, etc.  That is even more true with South Florida because we were hit so hard with foreclosures.