Do you shop lenders every deal or stick with one?

Question

I decided to shop rates and terms this last deal. I found that there were indeed cheaper lenders with better terms than the lender I had been using but I might lose this deal due to the extra time created from shopping, needing to meet different requirements, inefficiencies with working with a new lender, etc. It just got me curious.

Do you guys just stick with one lender for all your deals or do you bid out every loan? Also is the process different for different “types” of lenders? It seemed like I needed waaaaaay more LOE’s and documents with this new lender. Thanks!

Russell Brazil · Answer

I use the same lender every time. Many of my clients who shop lenders instead of using the ones I recommend end up with sub par ones that can get them into trouble later on. I have a transaction right now that has multiple problems created by a bad lender. Appraisa problem, we missed the closing deadline. Buyer had to come up with extra money because of the appraisal issue and now their EMD is at risk because we missed the closing deadline.

Do you shop lenders every deal or stick with one?

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