The more properties you own the more
complicated it gets, so working with
someone that specializes in investment
properties and can help you goal set for
your individual situation is key.
Ask your lender what percentage of
their business comes from investment
property loans.
You want someone whose business
is at least 50% investment properties
helping you out.
Communication – This may seem
basic, but you should be working with
someone that will return your calls and
your emails. Regardless of how you
came across someone, they should be
getting back to you within 24 hours. No
matter how much experience, how long
they have been in the mortgage field,
how highly recommended they come,
you are their potential client, and you
should be treated like gold.
serviced by the same company or will it
be sold off right away? If you don’t ask
any other questions about the company,
ask this: Does your company sell
directly to Fannie Mae, Freddie Mac, or
both? Why ask this?
Because Fannie Mae and Freddie
Mac are the two largest purchasers of
mortgages and they set the guidelines
for the loans that you have to qualify
for. If your lender’s company doesn’t
sell directly to Fannie or Freddie that
means they have to sell their loans to
a correspondent lender who then sells
loans to Fannie or Freddie.
If they sell their loans to a
correspondent lender you not only
have to qualify for Fannie or Freddie
guidelines you also have to qualify for
any additional guidelines or restrictions
that the correspondent lender sets.
These extra guidelines are referred to
as overlays. If you have ever heard that
Resources – A mortgage
professional is worth their weight if
they have resources. Do you need
a referral to a strong tax preparer,
financial planner, or lawyer? Are
you starting out on your own and
need a referral on where or who to
buy an investment property from?
Your loan officer should be able to
give you names or point you in the
right direction. However, if you
were referred to them by one of their
partners, they aren’t going to bite the
hand that fed them, so don’t expect
referrals to another competitor. That is
just sound business.
Pricing – Let’s face it, pricing,
the interest rate and fees that you pay,
are important, but it should not be the
only reason you choose a lender. If
the only strong point in your lender
is that they can offer you a better rate
“Ask your lender what percentage of their business comes from
investment property loans. You want someone whose business
is at least 50% investment properties helping you out.”
Availability – Going along with
communication, are they available to talk
with you on the phone or do they only
communicate via email? If your lender is
on vacation or out of the office, do they
have an assistant or partner that you can
talk with? Ask them if they work alone
or if they have a partner or a team. Don’t
discount them if they do work alone,
but if you have an urgent question how
would they be able to handle it if they are
out of the office?
Company affiliated with -
Find out who your mortgage officer
works for or with. Do they broker
their loans, or do they work for a direct
lender? Ask them questions about their
company, how long has the company
been in business? What are their
financial strengths? Will your loan be
Realty411Guide.com
you can only have up to four financed
properties it is because of an overlay.
Local underwriting – Does
your mortgage professional know their
underwriters? How many do they work
with? Ask them if your loan will be sent
to a giant pool to stand in line or if your
loan will be underwritten by someone
they know. Why does this matter?
Aren’t guidelines, guidelines? Yes,
but the underwriters that review your
loan are human and just as your loan
officer has experience, it is important that
the underwriter also has experience in
reviewing investment property loans.
Does your lender have a good
relationship with their underwriter? Ask
your lender what their underwriting turn
times are like. Are loans underwritten in
1-2 days or 1-2 weeks?
PAGE 27 • 2014
or lower closing costs be aware that
you may run into pitfalls with your
loan along the way. Be sure to ask
them some or all of the above points.
Saving money is important, but if your
loan doesn’t close on time or at all,
how much money are you saving?
Personality – While this is
not highly important, you should be
able to get along well with the loan
officer you work with. They should
fit you and your personality and meet
your overall expectations of a loan
professional. Ultimately you need
to be comfortable with who you are
using. Make up your own questions to
help determine if they fit this factor. v
To contact Steve Bighaus, please call
206.930.1801 or email him at:
[email protected]
reWEALTHmag.com