Which Lender Option Should I Choose?

[Matthew Spiers]

I've posted a couple of times about a 4-unit that I'm building. I initially got my HML in December of 2021 but after some increases in costs and wanting to extend my loan deadline I'm in the process of a refi (I know it'll cost me and at higher interest but I'm doing the refi for peace of mind).

However, after trying to pit two lenders against each other a bit I've gotten two deals that I can't decide between and would appreciate some experience investors' or lenders' feedback.

Lender A) $840,000 loan total, 11% interest, 1.5% origination, $12,000-15,000 in closing costs (possibly out of pocket, still confirming if it's cash to close), appraisal not done (waiting 3-4 days).

Lender B) $833,000 loan total, 11.5% interest, 1.5% origination, $30,000 in closing costs rolled into the loan with $0 cash to close, appraisal done, ready to close tomorrow as soon as insurance docs are updated.

Additionally, Lender A is my current lender and offered me way lower, $735,000 initially, only upping it when I told them I was shopping the loan. And I found Lender B from my current lender's recommendation (another department recommended them), so I'm a bit surprised my current lender referred me to an outside lender instead of their in-house refi team.

Please save any comments about interest rates; it's a HML for a construction project with plenty of equity. I've been leaning toward the "get it closed and over with" mentality all day but I keep wrestling back and forth with keeping the loan in-house with my current lender. Them upping their offering last minute has also left me surprised and with a bit of a bad taste in my mouth.

Any other guidance is greatly appreciated. Thank you!

[Esta Ryder]

Go with the lender that you can trust and that you know will do a good job.  I've seen too many lenders promise too many things and not perform (like promising a quick close).  If you go with someone you trust, you know they will get it done.  So with that in mind, I would have said lender one as you have used him before and it has been a good experience.  But I agree that is quite odd that they would up their offering in the last minute so I would definitely keep that in mind when making your decision.  Good luck!