do you ever pit lenders against each other?

[Jason Mak]

Just curious if anyone has any thoughts on pitting lenders against each other. I have a lender who keeps on asking me to give them the other lender's term sheet so they can "beat it". And I keep on telling him that he should have put his best foot forward in the very beginning.

While, I may be able to save a little bit of money by letting this lender undercut the other lender, it seems like a "jerkmove" and I don't want to extend the loan shopping process any longer.

Anyone have any thoughts?

[Jerry W.]

Actually I am from a small town and have used this tactic several times. I normally ask for rates from each of the 3 banks in town. when I get them I go to the next from lowest and say I have this rate quote can you beat it. Sometimes they say no, sometimes yes. I have loans with each of the 3 banks in town so they know I am not bluffing. I go with he lowest rate, but I never say which bank I have the quote from. In one situation the banker said I cannot beat it but I will waive the loan origination fees, and closing costs and match it. I now have begun negotiating the loan origination fees as well. Recently I went to buy a part owner of a joint venture out and had to get a pretty large loan. they have been so good to work with that my last 3 loans have all been with them and no shopping around. If their rates get too high though I will go back to shopping.