Which Convntl Lender to Use for our 1st property? Under Contract!

[Deanna S.]

Hello.  We are under contract for our first property (a triplex) since last Friday.  We have a 30 day escrow.  Home inspection was yesterday.  Now we need to secure our financing.  We are preapproved with Wells Fargo and their terms are 5.125 and processing fee of $470.  We plan to do a 30 year fixed loan. The property is rent ready needing less than $1k, we agreed on a good price but it is till 25% cash down for our family + closing costs.  Cash on hand is a BIG deal to us right now.

Another lender that is a division of First Bank Tennessee is offering us 4.875 with no processing fee. Below is the 2nd lenders quoted closing costs for all fees (minus the inspection that we paid for already).  We anticipated Wells Fargo will be $470 more and a higher rate but we know they will get the loan processed quickly.  They have a team that works with investors only and have been super responsive.  Which lender would you go with and why? 

As far as the closing costs, we also could negotiate the seller give us a credit as there are some inspection issues but nothing major (except the hot water heaters are leaking and one is 9 years old and the other is 17 years old).  The 17 year old one has an active leak. Our realtor stated the following last night to us so we aren't sure how much negotiating we can do on that.  

"The inspection report looks good overall.  Part of the reason the seller accepted your first offer was to account for minor issues that usually come up during inspection to avoid as much back-and-forth on repairs/price concessions as possible.  You are free to request any repairs/price concessions you'd like, but here is what I recommend:  (then he lists a couple small things and does not ask include replacing the 17 year old hot water heater).  

We are trying to keep our costs as low as possible out of necessity and business relationships are important to us.  We also met the owner of the triplex yesterday after the inspection and he was super nice and would like to be available to us for any questions we might have on the property.  He owned it 30 years, self managed it, did most of the repairs himself.  Really nice retired man who lives nearby.  We are out of state investors so all these relationships are important to us and we see this as our first property, not our one and only.  

Thank you, BP.

Loan Option 1:
Estimate Closing Costs:
=================================
Total Closing Costs:	$2557