Confirm the applicable program
Property use, affordability, condition, ownership and sponsor qualifications can affect the available financing. Ask the lender to identify the program and requirements used in its proposal.
Compare more than the interest rate
Review proceeds, amortization, interest-only periods, reserves, prepayment, fees and rate-lock terms. Use the same property financials and anticipated closing date when comparing proposals.
Document the remaining conditions
Confirm required reports, repairs, approvals and closing conditions. A preliminary indication can change after underwriting; track unresolved items before committing to the transaction.
Use one set of property assumptions
Send the same rent roll, operating history, planned improvements and closing assumptions to the lenders being compared. Ask each to explain adjustments to income, expenses and value. Otherwise, apparent differences between programs may reflect different underwriting inputs.
Separate the quoted coupon from the cost and flexibility of the complete loan. Interest-only periods, amortization, repair escrows and replacement reserves affect cash flow. Rate-lock arrangements and prepayment terms affect the timing and cost of decisions before and after closing.
Keep an open-items list
Identify what the lender has reviewed and what remains subject to approval. Property condition, repairs, borrower structure or third-party reports can affect a preliminary proposal. Assign responsibility for each outstanding item and confirm whether resolving it could change the terms.
A useful comparison ends with a reasoned choice for the specific property: proceeds, recurring obligations, flexibility and execution requirements. It does not depend on declaring one agency universally better or cheaper.
Discuss your property financing or explore sponsor consulting.