Bank or Mortgage company?

Question

Looking to buy a small multi family this year. Which would one recommend for a FHA W2 job.thanks in advance

Melvin List · Answer

Always shop around but typically mortgage brokers will have less margin than the big banks.

Robin Simon · Answer

If you are looking for conventional FHA financing its not going to really matter too much since its really the same product everywhere, a good mortgage broker that can shop around for wholesale rates might be your best bet

Jim Duncan · Answer

I'd agree with a lot of the advice already given. 1. Shop and get quotes from a few people. 2. But also keep in mind that WHO you individually work with is hugely important, and put a premium on finding someone who gives you honest and timely communication. ...Lots of steps and variables to successfully getting loans closed, so you need someone you can work well with.

Mark S. · Answer

@Greg Vander Wel I have found that smaller local or regional banks have offered substantially better terms than I could find elsewhere, in the four markets I work in. I’d give them a try.

Greg Vander Wel · Answer

Broker's typically are the best option because they have so many options compared to a bank. Some people are more comfortable using a bank because they can go into a branch and speak with someone face to face.  Especially the past few years, more and more brokers are working from home and the communication is almost 100% done on the phone.  Neither option is better, just depends what you are comfortable with.

Corby Goade · Answer

It's way more important with lenders to find someone you trust that you can actually sit down and talk to if there is an issue. Develop a relationship with a specific lender and work with them. Approval and criteria for FHA will be the exact same everywhere, that's determined by the feds, not the bank.

Bud Gaffney · Answer

Chase the rates! I would check your local credit union and talk to at least 3 potential partners. Tell them your plans and see if you can develop some strong relationships! Go get em.

Michael Hutchinson · Answer

Shopping it good as others have said.   My experience is that a broker likely wins on an FHA loan in the current market.  Brokers actually can have excellent pricing on QM (Qualified mortgages) non-QM and government products right now.   Where I see banks winning more are in the Jumbo and ARM spaces.  Jumbo they are buying the business to keep the customers and ARMs I see local banks and credit unions being extremely competitive in our area.   Good luck.

Esta Ryder · Answer

I 100% agree with @Mackenzie Grate.  The WHO is very important.  You can have a broker or bank with great programs but if the loan officer is terrible, it will be an awful experience and your loan may not close anyway.   Check with your Realtor too for a good loan officer.  They know who closes their loans and who doesn't and should be able to send you to someone good.

Good luck!

Mackenzie Grate · Answer

I always use a broker so they can shop around. Keep in mind too, what people seldom mention, is WHO you work with is also important. You want someone responsive, organized and communicative. Rates matter, but also response time. They can make or break a deal depending upon how fast or slow they are.... so make sure you vet the actual person too.

Good luck! You got this!

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