Shopping for a loan can be intimidating but so long as you are informed and prepared, you’ll be in a stronger position to leverage all three options into a better rate and/or service. Firstly, reach out to the 3 different types of lenders to get an idea of loan products, emphasizing rate, term and closing costs (origination charges, fees, etc).
Remember that big banks carry the household name and borrowers often pay the premium for that. Issues with larger banks is that while their initial customer service from the loan originator might be good, the subsequent handling of your loan after passing it off to their loan processor or coordinator may be less seamless. We’ve had many clients express their discontent about the bigger banks through the underwriting process. More likely that not, they’ll be selling your loan on the secondary market as soon as possible.
Remember, negotiate everything down: fees, loan origination charges, appraisal, everything.
Now, when deciding between you options remember not to commit to any particular until you’ve done your home work and make them earn YOUR business not the other way around. Ask them what options they have and what they can do for you.
Let us know how much out of your closing costs you were able to negotiate out. We’d love to hear.