I've spent a little time now talking with lenders and it seems like online mortgage lending companies like rocket mortgage and Better.com have the best rates. I rarely hear people in the discussions talk about these online mortgage lenders. Is there a problem with online lenders that I'm not seeing? I would assume if they have the best rates then everyone would be using them. What am I missing?
For investors who intend to buy more than one property, a relationship is preferred. You will find that larger banks and online lenders tend to have a fairly high turnover making it difficult to form long-term relationships. It can also be the case that lenders offer better rates when their closing timeframe extends to 45 days rather than the standard 30. Hope this helps.
@Mark Lopez the online lenders tend to offer teaser rates without collecting information from you that can seriously change the strength of the loan and deal. Having someone that will talk with you about the best rates and options especially on investments to me is helpful.
With that said I have lost some refinance deals to Better because they are throwing out very low rates to pump up their volume as they look to gain market share for when they go public. If your deal fits in a conventional box they might be a good option.
If you need something more non-QM like a bank statement loan or interested in an investor cash flow, where neither is looking at your tax returns then you might want to keep researching. I do both and happy to answer any questions.