How to figure out which lender to use

Question

Hi Everyone!

Every day I've been taking steps in purchasing my first property for my portfolio. I've interviewed a few agents and feel like I've landed on a team that I'm comfortable and excited to move forward with. The time has come to get pre-approved before moving forward on a property.

The agency I went with sent me a 'vendor partner list' that indicates 5 different lenders, 2 insurance brokers, 2 closing attorneys and 3 home inspectors they typically work with.

My question today is, how should I go about deciding which lender (in this case), or other professional to go with? Are there questions I should ask on the phone that would help me determine which vendor is best? Am I overthinking this process and should just get pre-approved by the first name on the list?

Any feedback is welcome! Hoping to move forward on this today or tomorrow.

Cheers,

Garrett

Garrett Crosby · Answer

@Nicole Galchutt great advice! I seem to be making great progress with the lender I'm working with in Memphis now. I appreciate all the feedback!

Aigo Pyles · Answer

Ask around.

Compare rates, terms, dp requirement, closing cost and other fees.

Nicole Galchutt · Answer

I can speak to the lender side. I would probably skip using banks or Quicken loan type lenders for this market as you may want someone you can call on a Saturday night to write you up a new pre-approval letter. You might also want a lender that can close quickly- ask who has their own in-house underwriter. Lastly the best way to get a good feel is to go ahead and fill out applications with each lender to get quotes anyway and see who is best at communicating with you. Fyi, I'm with Geneva Financial and we are in 44 states and we have many great loan officers!!

Garrett Crosby · Answer

This is great information. Thanks for the tips!

Andrew Syrios · Answer

I would definitely reach out to them and inteview them, so to speak. Ask for references for any vendor and try to start them on a small job. And never pay it all up front. With lenders, you will want to see 1) are they interested in the types of loans yo're doing and then 2) compare terms.

Abby Weinstock · Answer

With any vendor that is recommended, you will want to do your own due diligence in terms of establishing a comfort level with their reputation. You should check their Google reviews and make sure that they are rock solid. If they have an accreditation from the Better Business Bureau, you should check to see what their rating is. You should find out how long they have been in business, and also ask for references. You should also ask what their typical turn time is.