The Best Lender for Your Deal is Rarely the Cheapest

LOS ANGELES—With so many new lenders in the market, borrowers have more choices than in recent memory, but most borrowers are not taking full advantage of this opportunity. Most simply shop for the cheapest lender instead of shopping for the best lender for their transaction. This shopping pattern is fascinating because, on average, it does not match the rest of these borrower’s lives.  Most borrowers seek to buy the best car, go to the best restaurants, shop for the best clothing or go on the best vacations.  Yet, when it comes to borrowing, they focus on price, instead of value.

Many borrowers think money, is money, a loan is a loan and quite frankly, that is correct most of the time.  But most of the time is not all the time.  When everything in the economy is going well, there is rarely a problem.  Loans get funded, terms seem fair (and usually get more liberal as the economy expands), and lending staffs are accommodating.  However, when the economy shifts, and becomes more challenging how will that easy-going source of cheap money behave?