Interest Rate Advice: Big vs Little Guys

[Len Roche]

Hello all,

I just got qualified for a Wells Fargo 30 year mortgage on a $200,000 purchase limit with 20% down for a small multifamily investment property. This is my first interaction with the conventional financing system. I haven't gotten the details, but the pre-approval letter should be sent soon. I don't have to worry about a high debt to income ratio as this will be my first purchase, I have zero debt, and my wife and I have good W2 income.

Since the interest rate on a mortgage can have a big impact on cash flow, I figured shopping around for different quotes would be prudent. I have 7 small local banks near me and can work with the big guys through the phone if necessary. I started with Wells Fargo as they are my primary bank and I have a good relationship with them.

Is there a general rule of thumb for interest rate offered by banks, big or small?

How should I cast the net with my mortgage search among the different banks I have access too? 

Assuming apples to apples comparisons, I am only considering the interest rate they offer, is this a mistake?

Any Recommendations for banks you have worked with in the past?

Thank you,

Len Roche

[William Murrell]

You not only need to consider the interest rate, but also the associated fees with the mortgage.  As the old saying goes: "what the large print giveth, the fine print taketh away."    I'd recommend you shop the rate no matter what. 

Smaller banks beat bigger banks almost every time when it comes to trying to get a partner-like relationship going.  The bigger ones don't really have as much incentive to care about you as anything more than a number.