FAQ — Why Use FIG's Preferred Lender?Jun 08, 2021
We spend a lot of time talking about the preferred lender for FIG (Lane Aldrich, with First Colony Mortgage). People ask us all the time, "Why should I use FIG's preferred lender? What if I still want to use my own lender?"
First off, it's a little trickier than you might think. It's not as simple as just calling up any mortgage broker and getting a loan. Why is that?
When you're looking for a construction loan on a multifamily project, you instantly narrow down the list of lenders who is willing to do that. Meanwhile, the FIG team has spent a long time, in many cases, years, cultivating relationships and getting them familiar with our process.
It's usually small local banks and credit unions within the market where the fourplexes are located, that are willing to do these construction loans. There's a very specific draw process/approval process. Any old lender off the street would be starting from square one.
So if we're telling you that this property is ready to start construction immediately, you can see how we wouldn't be able to start from square one with a new lender. The established relationship isn't there. Plus, these local lenders are oftentimes approving your loans because you are already pre-approved for your long-term financing with FIG's preferred lender.
The builder also wants to incentivize you to use FIG's preferred lender for the long-term financing. Why? The preferred lender is 'in the know' on when the units will be done, when it would be best to lock rates, how to work through the appraisal process, etc. There's a lot of things that need to happen, and in the right order, for your refinance to be done in a timely manner--so that you can have that locked in.
Once again, a lender that hasn't been through this before, they'll be starting over. They're going to have a lot of questions for you that you may not know the answer to. And they're going to have a lot of questions for the FIG team, that frankly, we've already answered and dealt with while working with our preferred lender.
In order to make it a little bit easier to choose, the builder gives you a preferred lender incentive. They'll give you free refrigerators in all of your units by sticking with Lane at First Colony Mortgage. If you find some deal of the century, with a long-term lender that you want to use instead, in theory, could you do that? Yes, just make sure it's better than free refrigerators and a lot of convenience in your final refinance process.