Interesting perspective—I haven't refinanced yet, but as a first-time buyer currently weighing my options, this is exactly the kind of scenario I'm trying to anticipate. I've heard smaller lenders can be more accommodating initially, but your point about refinancing hurdles makes me pause. Did you find the refinancing difficulties were mainly due to stricter documentation requirements, or was it more about limited product offerings from the smaller lender? Curious about the specifics here...
From what I've seen, refinancing issues with smaller lenders aren't always about limited products or strict docs—sometimes it's just their internal processes being slower or less streamlined. Had a client recently who went with a smaller lender initially because they were flexible, but when refinancing came around, the delays and back-and-forth were a headache. Not saying smaller lenders aren't worth it, but it's good to factor in potential inefficiencies down the line... just my two cents.
"Had a client recently who went with a smaller lender initially because they were flexible, but when refinancing came around, the delays and back-and-forth were a headache."
Had a similar experience myself recently:
- Went with a smaller lender initially because they were willing to look beyond the standard checklist (self-employed income, rental properties, etc.).
- Everything was smooth at first, but when it came time to refinance, it felt like pulling teeth. Docs got lost, communication was spotty, and timelines kept shifting.
- I get that smaller lenders might not have the same resources as the big guys, but it made me wonder if flexibility upfront is worth the hassle later on...
- Curious if anyone's had the opposite experience—maybe a smaller lender that actually streamlined things better than expected?
I've actually had the opposite happen—went with a smaller lender expecting headaches, but they were surprisingly efficient. Maybe it's less about size and more about their internal processes or even the specific loan officer you get...
I've had mixed experiences with smaller lenders, honestly. While internal processes and individual loan officers definitely play a role, sometimes smaller outfits just don't have the resources to handle more complex or unconventional loans smoothly. Had one deal almost fall through because they weren't prepared for a unique property scenario. Bigger lenders might be less personal, but they usually have more standardized procedures for handling unusual cases. Guess it depends on the specifics of your situation.
