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Low Rates: Always the Most Important Feature? Part 2

June 10, 2015

Going for the lowest rate could be a good practice generally.  But, as we covered in the previous blog, there are quite a few lenders who quote a rate too low to hook you into working with them. Later on when you are well into the loan process, they give you a higher rate than originally quoted. They may tell you that rates have gone up, but the problem is they changed the rate artificially to try to get your business.

This most recent past article also covered what you can do to help prevent this from happening.

This week we are going to continue looking at some other reasons not to jump at the chance of choosing a lender who gives you a lower rate.

If you choose a lender who gives you a very low rate and let’s say that he gave you too low of a rate to hook you, the next thing you need to keep in mind is that if he lied in one area, he is quite likely to lie in other areas in working with you. Honesty is like pregnancy. You are either pregnant or not.

When you spot someone who is OK about being dishonest in one area, he is very likely to be OK about being dishonest in other areas. This is because behind lying is excuses. And the excuses connect to lies frequently become a cascading event – one lie follows another and it can become a deep ingrained habit.

I believe excuses can be habit forming – addictive. Lies I believe can also be habit forming and addictive.

But, let’s get back to this article about possible problems of getting the lowest rate. There could be another reason a lender gives you an artificially low rate for your commercial loan. And that is you have selected an inexperienced lender who hasn’t had enough training to properly quote you.

Working with an inexperienced lender could be very costly. One of the worse things that can happen in working with an inexperienced lender is that he tells you he can do your loan, and late in the process it turns out that he cannot do your loan. The lender he chose rejected the loan. His inexperience caused a number of mistakes.

You have now wasted 6 weeks in the loan process – and you lose the opportunity to purchase the property you have under contract. This is because the closing date is expiring before you can get another lender to do your loan.

Choose honest lenders who quote fairly and choose only experienced lenders. Take your time to do deep due diligence which includes talking to customers of theirs, checking their record through the Better Business Bureau, and online searches, etc.

We have an A+ Better Business Rating at and Business Loan Store. This is because we quote fairly, are experienced, and have other good habits of honest business practice.

Contact us to see if you qualify for our best multifamily, commercial, or bridge loan rates and terms. Keep in mind that one of our specialties is commercial bridge lending. Also, contact us if you would like to discuss your particular commercial lending needs, or if you have questions. Call 214-695-7310 or send an email to

To discover more about our loan products as well as rates and terms, see our loan programs page.

Bruce Painter, Director of Marketing, Business Loan Store


Getting the right loan and the lowest rate requires wisdom and finesse. If you’re ready to partner with a team of professionals who’ve built a foundation on straight talk and true strategy, we are the loan store for you.


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HUD Loans are one of the best options with the current level of interest rates. For a complete guide to HUD Multifamily Loans please go here:

HUD Multifamily Loans - The Complete Guide