What to Look for in a Lender
Steve Bighaus Discusses
by Steve Bighaus
A
loan is a loan,
right? Wrong.
An investment
property loan comes with
a different set of guidelines
and requirements than your
typical owner-occupied
or even second home
transaction. So here are
10 key things to look for
in a lender.
Tips from the Pros
Experience – It is important to
interview your potential lender.
Whether you have found someone
on your own or were referred to a
mortgage professional by a friend,
family or colleague, ask them
questions. How long have they been
in the mortgage business? Someone
who has been in the industry 10 or more
years has truly weathered the storm.
What positions have they held?
This is more important than you may
realize, even if someone has been in the
industry for a long time what have they
done in it? If they have always been
a loan officer, what is their production
like?
Ask them questions about the “myths”
you have heard in the mortgage
industry. Do they tell you that you
can only have up to four financed
properties? If they do, it is time to
move on to a different lender.
Specialty – Rental properties are
different. Sure, any lender can offer
you a loan on them and chances are
most loan officers have done at least
one in their career, but is that their
focus? If you are looking to build your
rental portfolio you want someone
that can work with you on your time
schedule. Are you looking to buy one
property a year or buy 10 properties in
the next couple of years?
A loan officer that can help you
strategize is vital. They should be able
to help position you and your finances
at the pace that you can handle, not
necessarily what you want to handle.
Knowledge – Going hand in
hand with experience what does your
loan officer know? Ask them detailed
questions about your situation and see
how they answer. Do they have an
immediate answer for most of your
questions or do they need to research
and get back to you? Are you a first
time investor or buying your seventh
property? What do they know about the
differences between financing one to
four properties vs. five to ten?
Realty411Guide.com
PAGE 26 • 2014
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