Interviewing Residential-Commercial Lenders
I have recently secured a private lender and I've just received the funds in my account to purchase a small (2-6 unit) multi family property. I would like to speak with 5 or more lenders before I purchase a property, what are different terms and conditions I should ask for when speaking with multiple residential and commercial lenders? Should I contact local lenders at banks and credit unions in my area or should I also speak with lenders outside of my city/state?
Lending broadly tends to be driven by risk reward where lenders with higher LTV will tend to have higher rates or lenders with pre payment penalties can have lower rates. I am not sure if you need to speak with 5 or more specifically, its more important that you find one that you feel comfortable with. For me, that took walking into 2 offices. The things I would want to know are:
When and how the arms adjust, what pre payment penalties exist, if it is a balloon when does it come due, longest amortization rates they feel comfortable with, highest DTI's they feel comfortable with, etc.
What you are trying to find is a bank that expresses flexibility and a strong desire to close to loan. I look for banks that are small enough that each loan is reviewed by a few people in a meeting once or twice a week, where my primary contact is one of the people at the table.
Hi Micheal- I would love to connect and discuss this with you.