Do you choose lenders based on rate or reliability?

Question

I've seen deals where the lowest quote wasn't actually the best option, Sometimes certainty of closing ends up being worth more than a slightly lower rate, How do you evaluate lenders when you're comparing options?

Mills Thumser · Answer

More investors should definitely consider that lowest rate may not equate to the best option. Reliability is the long game strategy to build relationships with lenders and eventually get to the best pricing available with that repeat lender.

Nyron Isaac · Answer

Balancing rate and reliability is critical. While a low rate protects long-term cash flow, execution certainty protects the immediate deal. Most investors prioritize lenders with a transparent underwriting process and a strong track record of closing on time, as a missed deadline is often far more expensive than a fraction of a percent on the interest rate.

Jose Cuevas · Answer

I ask myself that question too. I recently had a borrower who was denied everywhere else and was ready to give up. He actually didn't even want to speak with me since he was fed up with the process.

It took me some time to find the right lender, but we got it done, and he was very happy. I had to give him a higher rate, but we have a strategy to lower the rate later down the road.

I guess it's just dependent on what the client needs at that time.

Jules Aton · Answer

When I was doing more deals I had 2 loan officers who I used regularly and trusted their advice about the rate. My last three financed deals I just used lowest rate I googled on the internet because the equity was solid, my downpayment hefty and credit excellent. Fortunately I didn't have any issues closing.