Not all lenders are created equal

3 Replies

This is more for the newbie like myself. Purchasing my 2nd buy and hold. Got the deal i wanted and now it is time to get lending. A little more about me. high credit score, good w2 earnings, low debt to credit and assets. basically a prime borrower. Here is what I wanted:

74K loan with 20% down total purchase of 92K

Prime rate

no points

30 year

Here is how the conversations went.

lender 1 (Big Bank): gave me the interest i wanted, wanted points

Lender 2 (smaller Bank) would not lend that little amount with out increased rate

Lender 3 (Regional Bank) would not lend to out-of-state borrow without 30% down

Lender 4 (Big bank) gave me everything i wanted but would not allow seller contribution increasing my cash to close by $1840

Lender 5 (Regional) bingo got everything I wanted and learn some lessons

Point of this post. for newbies know the terms you want and stick to your guns. Don't be so willing to get the deal done that you agree to bad terms

@Bryan Otto

thanks for the sage advice.

Can you tell us how you found the regional lender or for that matter how you chose the other lenders?

i use a respected Realtor and PM so had some leads

Most people think the bank has all of the control. And they are thrilled when any bank offers to give them a loan. I let the bank know straight out what my terms are based on my business model, and I am looking for a bank that fits my model.

Gratz Bryan on getting your terms met.

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