I typically recommend local lenders because I find that they are more accountable. Even if a buyer is using a national bank, I find it is better to have a local representative on the file. Nothing is more frustrating than working with some 1-800 number lender who becomes conveniently absent when a deal starts heating up, or timelines get tight on a transaction.
In the past couple of weeks, I have had two clients shop for mortgages online after securing a contract on a home. Both came back with inaccurate information. My advice to both was to use a local lender. It is natural and good practice to want to shop around. Online shopping is very convenient because you can do it at your convenience. But, I highly advise my clients to shop their loan with local lenders for several reasons inspired by experience: