Shopping for a loan is hard. Comparing loan terms and offers can be harder. When I recommend a lender, there is an incredible amount of conveyed trust in that recommendation.
A client asked me the other day -
“How do I know who has the best terms?”
So naturally I asked a lender I trust for his answer.
Well, there’s the following:
1.Â Â Â Â Â Â Rate & points & fees & lock in time frames
2.Â Â Â Â Â Â Meeting commitment/close dates
3.Â Â Â Â Â Â Breadth of products
4.Â Â Â Â Â Â Uniqueness of products â€“ i.e. closing prior to starting your job, gift for 100% of down payment, 100% LTV deals, etc.
We all should be .125% in rate apart on any given day, but you might see outliers.Â For example, I had a rate shopper asking for a conventional 20 year loan and I was able to quote 3.875%, and no one else was better than 4% and some were higher than that.Â There are a few exceptions to that pricing point, but in general it’s the value a loan officer brings to the picture to get to the finish line with the least amount of upset and on time.
I’d add to Matt’s last sentence with this: there is tremendous value in a lender (or any professional for that matter) who will:
– Foresee and anticipate problems
– Acknowledge problems
– Communicate problems
– If it’s their mistake, own the mistake and …
– Fix the problems
Also. I like local lenders; as a buyer’s agent, they make me immensely more comfortable. As a listing agent, I value a local lender (whom I know to be good) tremendously – and convey that to my clients.