Hey, I’ve heard so many people list out the benefits of working with mom and pop banks/lenders/etc instead of bigger lenders. Does anyone have any experience with this, and what are the benefits. I’ve heard they are more willing to work with you, and have better customer service. Is it worth it if they can’t get as good of a rate? Anyways if anyone has and recommendations or stories experience I would live to hear them!
It all really depends on your specific deal. Generally speaking, smaller banks and CU's are easier to deal with and have better customer service, but these smaller lenders tend to have their own "sweet spot" in lending, i.e. some love 1-4 family properties, some hate them, etc. I would not paint with broad strokes that smaller is better than larger lenders - it really depends on your location and the project. Some big lenders regularly run "specials" for certain types of properties. The best thing I could recommend is to take the time to call alot of lenders, remember, you are getting into a long contractual arrangement with them, and possibly, a repeat situation if you go back to them for additional loans (getting a relationship built with a lender can be a huge bonus). In doing so you will get a good idea of what lenders are aggressive (and ones that are not) on your particular deal. If the best one is a big lender, then so be it; if its a local one, that is fine too ----- as long as their money is green!