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Updated about 13 hours ago on . Most recent reply

How can you tell if a lender is legit?
I’m looking for non-conventional lenders and posted on FB groups for recommendations/contacts. I received quite a few replies directly from lenders themselves. How can I tell if a lender is legit?
Also, if you have any you’ve worked with I the past, would appreciate recommendations!
TIA
Most Popular Reply

Don Konipol
#1 Tax Liens & Mortgage Notes Contributor
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Quote from @Caitlyn Frizzelle:
I’m looking for non-conventional lenders and posted on FB groups for recommendations/contacts. I received quite a few replies directly from lenders themselves. How can I tell if a lender is legit?
Also, if you have any you’ve worked with I the past, would appreciate recommendations!
TIA
Mortgage brokers play a vital role in our industry - the good ones have access to financing options that borrowers don’t, they know how to package loans for the best chance of lender approval; they know which lenders are most likely to be interested in financing and at what terms; they can provide a realistic assessment of whether or not your desired interest rate, terms, etc are realistic.
In the non institutional money field you will pay 1-4 points in broker fees. This is in addition to the origination points you’ll pay to the actual lender - another2 -4 points.
Going directly to a LENDER can save you the broker fees - or possibly cost you the opportunity for a “better” loan. Especially if you don’t have a lot of experience.
Here’s a word of warning - most states do not require licensure for COMMERCIAL mortgage brokers, or mortgage brokers who specialize in business/investment purpose loans. As a result the quality of advice, service, and competence is all over the board. Besides the competent professionals, there are brokers who’ve never completed a deal and have little knowledge or experience; brokers who do nothing but resubmit loan requests to other brokers (daisychain) and brokers who disguise themselves as “lenders”.
Best way to determine who is “real”
1- recommendation from someone you know
2- recommendation from experienced investor
3- check their website for professional presentation, etc.
4- check their references
5- Google search
6- criminal background check
- Don Konipol

Private Mortgage Financing Partners, LLC