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Tips from the Pros
Steve Bighaus
Discusses What to Look for in a Lender
A
By Steve Bighaus
loan is a
loan, right?
Wrong. An
investment
property
loan comes
with a
different set of guidelines
and requirements than your
typical owneroccupied or
even second home
transaction. So here are 10
key things to look for in a
lender.
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?
financed properties? If they do, it is
time to move on to a different lender.
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?
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
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.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.
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