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This past spring, we held free "First-Time Home Buyer Happy Hour" events in each of our 4 local communities. We invited potential first-time home buyers, curious residents, realtors, brokers, and other local professionals in the home-buying field.

During the Q&A section at the end of one of the events, a title company employee asked our presenter if they could discuss the difference between using an online mortgage company versus a local financial institution.

Our presenter started by discussing the industry average for closing a mortgage loan, which is about 44 days. While online mortgages companies claim they can close faster, they are held to the same regulations as we are, and thus, may not close as fast as they claim.

Is it possible? Yes. In some instances, no matter who you are working with, a mortgage loan may close much faster than 30 days.

At FCCU, we've got our closing rate to about 32 days (as of 2018). 12 days less than the industry average isn't too shabby.

The title company employee chimed in and asked if she could add her thoughts.

She explained that she had seen many online mortgage customers extremely frustrated with the process of completing a mortgage entirely online. They were often confused with the process, which exacerbates frustration when the customer can't easily get a hold of the person responsible for their mortgage.

The title company employee suggested that the audience consider completing a mortgage with a local financial institution. Side note: We did not plant her in the audience. We swear. It was a very awesome coincidence!

The employee also suggested double-checking the fees that the online mortgage company would charge for origination and closing costs. Online "convenience" often comes at a cost, and in this case, it manifests itself in higher fees than the average local credit union or bank.

Online mortgage companies may also not be familiar with local grant programs for first-time home buyers that could potentially save you thousands of dollars.

Bottom line: Do your homework.

Ask questions of the company with which you are working BEFORE they begin to take your application: What do they charge for closing costs? What are their origination fees? Will they be charging you points? You should utilize word-of-mouth and ask your family and friends for references.

Buying a home is a complex transaction and it's important that you are comfortable with who you are working with.