Not every lender is created equal. Service? Price? Technology? Partnership? Get a breakdown of what to look for in a lender partner!
While we have over 200 lenders on our site, we also realize that you don’t need all 200. However, all 200 have a purpose and might be a great fit with a broker! Below are the few things that we work with brokers on when finding the right lender partner. If you’re already a broker, you always want to keep your eye out for new or emerging lenders. You may also want to reevaluate your current lender roster a couple times a year as companies change over time (for better or worse).
Products
Arguably the most important thing a lender should have is a product or product mix that fits your business. While we always recommend having a diverse set of lenders and more than one or two in each category; it doesn’t make sense to sign up with several lenders for a loan type that you’ve never done before. For example, there is no reason to sign up for 10 lenders for NonQM bank statement loans if you have never closed a bank statement loan. Start with a few and the expand your lender partners as your business grows and adapts.
Service
Everyone always says that you can pick two of the three - price, speed, and quality. This can sometimes be true but with so much competition in the industry, we like to think you can have all three as a broker. When looking at the quality and speed of a lender’s process, there are several things to look at. You’ll want to look at the speed + accuracy of disclosures, underwriting, closing, and funding. Some brokers would choose a slower lender that is more accurate versus one that is quick and makes more mistakes (but leaves more time to pivot) - this is all personal preference. Although we do believe speed helps solve lots of problems.
Rates
This one is a bit self explanatory but if a lender doesn’t have a great ratesheet, that impacts your ratesheet when brokering the loan. You don’t always need to be the cheapest, but you do need to be competitive.
Technology
Technology goes hand in hand with service. Technology can make it easier for your borrower and you to close the loan. If a lender offers technology to make the processing and broker experience more efficient, this leaves the loan officer, processor, and team with more time to do what they do best - close and get more loans. On the flip side, technology can also impact a borrower's experience - just think of a disclosure eSign process; some lenders have an easy process vs others that have an unnecessarily cumbersome process.
A True Partnership
While you may have found a lender with the best price, state of the art tech, and great service for the loan types you’re looking for...if they aren’t committed to long term broker success, it might come back to haunt you later. To our knowledge, every lender is a for profit business so of course everyone is worrying about their own bottom line. However, some lenders are committed to the broker community and pledge to not poach past customers (especially when rates drop). While other lenders will offer a great rate as a way of client acquisition and refinance a broker's clients later. Pay attention to all of the below…
We know there are lenders on our site that meet all the above. However, we also know on very unique / niche products you sometimes have to give up one or two of the above - and that is where you come into play, being a broker! We always recommend looking at value - a lender with a low rate won’t help your client if they can’t close on time! And peace of mind is worth something too! But on the flipside of the coin, going with the easiest lenders isn't always the best value for the client.
As a broker, you have options, please use them!
