Technically, yes you can use your out-of-town lender. But it is not in a buyer's best interest to utilize an out-of-state lender for the following reasons:
* Lender is very unlikely to be familiar with Florida's laws, closing rules, & local customs
* Many closings in other states are handled via attorneys or escrow companies. The vast majority of Florida closings are handled through Title Companies, who are impartial intermediaries who do nothing else but real estate closings. Thus they are not only extremely proficient and knowledgeable about closings, but their closing fees are substantially less than attorneys or escrow companies.
* Having a local appraiser who is very familiar with our market is crucial to the transaction. Many out-of-state lenders choose from a wide ranging pool of appraisers, from as far away as Tampa, Orlando or Miami. Those appraisers are not going to be familiar with our County's specific market, and often those appraisals come in with a price far below the actual market value....thus effectively killing an otherwise good deal.
* Many local lenders and title officers have done several transactions together, thus work closely and seamlessly for a relatively stress-free closing process. If an appraisal or other problem come into play the transaction can become very stressful on all parties.
* We have seen some buyers from up north use their local bank for their home purchase strictly for familiarity purposes. Besides the reasons given above, a bank will typically have one or two loan programs and interest rates. It is much more advantageous to have a mortgage broker searching for hundreds of loan programs/interest rates, and a buyer choosing the best plan & loan rate from those options.
Tom: We have a few local loan officer suggestions, one in particular who has completed numerous smooth loan closings for our clients. We are not allowed by law to be compensated for a loan officer referral, so our only incentive in referring a great loan officer is for the reasons stated above. Please contact us when you need a loan officer recommendation.