WHY ENGAGE WITH A LOCAL LENDER?

NOT ONLY ARE OUR LOCAL LENDERS KNOWLEDGEABLE ABOUT THE AREA, THEY ARE experts on THE INTRiCACIES OF PURCHASING A PROPERTY IN A RESORT MARKET LIKE OURS.

VACATION RENTAL ADDENDUM

If you’re thinking of purchasing a home that’s currently enrolled in a vacation rental program, your purchase contract will contain a Vacation Rental Addendum (also known as a “VRA”), which will indicate to your mortgage underwriter whether you’re able to occupy the home at any point during the year. The VRA is key to the transaction as it helps differentiate between an investment property and a second home, and the financing ramifications that go along with it. Our local lenders are familiar with the provisions of this addendum and can help you obtain the best financing options for your situation.

BILL OF SALE

Unlike many primary residential markets, homes on the Outer Banks typically convey with furnishings, and as such, a Contract and Bill of Sale will be attached to the purchase contract. Typically, in our market, the personal property items convey at no cost or $1.00 at the convenience of the the seller. Lenders who are unfamiliar with our market may require their appraiser to assign a value to the furnishings to be deducted from the purchase price—leading to higher down payments and lower appraised values. Local lenders understand this addendum and work with appraisers who understand it, too. Speaking of appraisers…

APPRAISALS

Because the Outer Banks covers a vast area, but supports a small year-round population, there are a limited number of local appraisers who service our area. With that said, our pool of local appraisers tend to prefer working with local lenders because of a mutual understanding of the area and the intricacies that go along with it. Simply put, out-of-town lenders may either experience delays in ordering appraisals, or be forced to use an appraiser who isn’t fully familiar with our market, which could potentially result in lost time, money, or loss of the contract itself.

LOAN UNDERWRITING

Many Outer Banks lenders also provide local processing and underwriting, meaning that your lender is more likely to have intimate knowledge of the Outer Banks market. If you’re in town and would like to meet with your local lender, you can make arrangements to do so. Local lenders will work with you to build a relationship that you just can’t achieve with an internet-based representative.