"Doesn't hurt to ask, but don't expect miracles if their margins are already tight..."
Yeah, that's been my experience too. When I refinanced my VA loan last year, I shopped around quite a bit and noticed exactly this. Some lenders were open to giving credits to close the deal, while others just flat-out said their hands were tied. Ended up going with a smaller lender who had a bit more flexibility built into their pricing. Saved me a decent chunk in closing costs, but definitely wasn't a miracle deal or anything... just enough to make it worth the hassle.
Some lenders were open to giving credits to close the deal, while others just flat-out said their hands were tied.
Interesting, I've been thinking about refinancing too, but I'm curious—did you find the smaller lender's rates competitive overall, or was it mostly the closing cost credits that tipped the scales? I've heard mixed things about smaller lenders sometimes having slightly higher rates. Also, how much hassle was involved exactly...are we talking endless paperwork and phone tag, or just a couple extra emails? Trying to gauge if it's worth diving into myself, haha.
I refinanced my own VA loan about six months ago and honestly, the smaller lender route was pretty decent. Rates were competitive enough—I mean, maybe not rock-bottom, but definitely in the ballpark with the big guys. For me, it was the closing cost credits that sealed the deal. They were way more flexible about throwing in some credits to sweeten things up, whereas some of the bigger lenders basically shrugged and said "take it or leave it."
Paperwork-wise, it wasn't too bad actually. I was bracing myself for a nightmare scenario—visions of lost emails and endless phone tag danced in my head—but it ended up being pretty straightforward. I mean, yeah, there was paperwork (there always is), but most of it was electronic and clearly laid out. I think I had maybe two or three phone calls total, mostly just to verify info or clarify something minor. It wasn't exactly fun, but it wasn't root-canal-level painful either.
I will say this though: smaller lenders can be hit-or-miss when it comes to responsiveness. Mine was awesome—quick replies, clear communication—but I've heard stories from clients who had the opposite experience. So maybe do a little digging on reviews or ask around locally before jumping in.
Overall, if you can snag some decent closing cost credits and the rate difference isn't huge, I'd say it's worth a shot. Just keep your expectations realistic—it's refinancing, after all, not ordering pizza. There's always gonna be at least a little hassle involved...
I get the appeal of smaller lenders, but honestly, my refinance through a bigger bank was surprisingly smooth. Got a better rate than expected, and their online portal made everything super easy... Guess it depends on luck sometimes with who you deal with.
I see your point about bigger banks offering convenience, but from my experience, smaller lenders often have more flexibility in negotiating fees and closing costs. When I refinanced last year, a local lender was able to waive certain fees that the larger banks wouldn't budge on. The online portals are nice, sure, but sometimes saving a few hundred dollars upfront matters more—especially if you're budget-conscious like me. Guess it really depends on your priorities...
