Hi Hopeful Homebuyer,
It sounds like you might be of the generation that does everything online--thats great. Technology is a wonderful thing. As a Broker, where the money comes from is not an issue. Buyers, sellers and realtors aim for a smooth and timely contract to closing process. There is no way to definitively say an online or dot com lender is going to process the application slower than a local lender. However, if the borrower doesn't have perfect credit or has some other blemishes, the appraisal comes in low, the home has a lien, or any other of a myriad of problems that tend to crop up during the purchase/sale process, it is easier for the realtors to work things out with a local lender. Given the pace of consolidation in the banking industry and the increase in qualification standards for morgages, it is becoming increasingly difficult to get a mortgage. When or if problems do arise, it is simpler and quicker for the realtors to contact the local lender and work out the issues.
If you are one of the buyers with great credit, no negatives items in your history, at least a 20% downpayment, your purchase has no problems, and the purchase price is near the appraisal price, a dot.com lender may work for you. Once you have identified the home you want to buy, I would suggest getting a quote from the dot.com lender and also getting a quote from a local mortgage broker. Chances are the rates and terms will be pretty similar. If the broker and the dot.com offer similar terms, why not use your local mortgage broker and help stimulate yor local economy.
Good luck with your purchase in Nanuet.
Maureen McEnroe, eCertified
Licensed Real Estate Broker
Prudential Joyce Realty