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. Rate & points & fees & lock in time frames
2. Meeting commitment/close dates
3. Breadth of products
4. Uniqueness of products – 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. 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. 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.