Seeking local Lenders

[Madison Sobol]

Hi, we are closing soon on our first home.. yay! We have been working with a lender that is a family friend but they are encouraging us to shop around for lenders and search for better rates.

- Any recommendations on local lenders in the greater Austin area? 

- Anything we should watch out for when talking with lenders?

Love the community here, been Bigger Pockets fans for a while and thanks so much in advance!

[Raymond J. Rodrigues]

Hi @Madison Sobol, congratulations on closing on your first home soon! It's nice to see that a family friend that's a lender mentioned shopping around for rates so that you can find the best deal possible, even if that means not working with them. That says a lot about them. 

It's always in your best interest to do so and I always encourage the same for those that I work with so that they know that I am giving them a great deal. Unless you have something to compare to, it's hard to say right?

Things to look out for--

--Ask a lender what your potential interest rate is going to be and what lender fees are associated with this rate (underwriting fees, points whether they be origination or discount). 

--What is your average closing timeframe? 21 days, 30 days, 45 days? 

--What are your hours of operation? 9-5? Can I reach you after hours if something critical comes up. Are you available on the weekend to send a pre-approval letter if I need to get an urgent offer submitted? -- You will not find this level of service with a regular bank or credit union. 

--When comparing lenders terms, try to get them all on the same day, rather than spread out over a few days. Rates can change up to 2-3 times a day, sometimes more, depending on what the market is doing. 

Depending on whether you're purchasing a property as a primary residence or investment property, the cost can vary drastically. 

If you have any other questions, always feel free to reach out! Happy to help!