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John S Thomson
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Hello all advice on pre-approval

John S Thomson
Posted Sep 19 2022, 01:13

Hello all just getting started well actually just started thing about real estate been listening to the podcast at work since I found it in July . Question is where is the best place to try pre approval? Should I go to local bank try online stuff? Any info would be greatly appreciated Thank you 

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Sep 19 2022, 05:23
Quote from @John S Thomson:

Hello all just getting started well actually just started thing about real estate been listening to the podcast at work since I found it in July . Question is where is the best place to try pre approval? Should I go to local bank try online stuff? Any info would be greatly appreciated Thank you 


I prefer local lenders over national companies. Try interviewing several. Even if they all have the same products, you may find one that is easier to communicate with, has better personal service, or you just mesh better with.

  • Property Manager Wyoming (#12599)

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Aj Parikh
  • Rental Property Investor
  • Centreville, VA
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Aj Parikh
  • Rental Property Investor
  • Centreville, VA
Replied Sep 19 2022, 08:58

Hi John, it is a good practice to also share with the lender what you are trying to do with your investing journey. They have different loan products that might work for the investment strategy you are pursuing. One of the things that might help with mindset is think as if you are about to buy 5 properties , would you go to different lenders for each? So do all the research and talk to multiple lenders and then make sure you build a long term relationship with the lender. 

If you need help with connecting with national lenders, feel free to reach out. I will be happy to help. 

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Debbie Fales
  • Lender
  • Annapolis, MD
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Debbie Fales
  • Lender
  • Annapolis, MD
Replied Sep 19 2022, 09:31

A good private lender can provide you with a proof of funds letter for your property prior to submitting your contract. It may help you in securing the property by boosting your bid. 

Good luck! 

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John S Thomson
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John S Thomson
Replied Sep 21 2022, 17:54
Quote from @Nathan G.:
Quote from @John S Thomson:

Hello all just getting started well actually just started thing about real estate been listening to the podcast at work since I found it in July . Question is where is the best place to try pre approval? Should I go to local bank try online stuff? Any info would be greatly appreciated Thank you 


I prefer local lenders over national companies. Try interviewing several. Even if they all have the same products, you may find one that is easier to communicate with, has better personal service, or you just mesh better with.

Ok so then I should do the back where I do all my banking first? 

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John S Thomson
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John S Thomson
Replied Sep 21 2022, 17:58
Quote from @Aj Parikh:

Hi John, it is a good practice to also share with the lender what you are trying to do with your investing journey. They have different loan products that might work for the investment strategy you are pursuing. One of the things that might help with mindset is think as if you are about to buy 5 properties , would you go to different lenders for each? So do all the research and talk to multiple lenders and then make sure you build a long term relationship with the lender. 

If you need help with connecting with national lenders, feel free to reach out. I will be happy to help. 

Ok thanks I was looking into BNB first to build money up then use that money to get into ltl mf. I live in Vermont and not sure if I should try to do that here or down south since  things get real slow in winter here. I was just wondering if I wanted to do bnb in say SC and I'm in Vermont I don't know if I can use my bank I use everyday ? Im new to this and work third shift with two kids to raise so time is very thin since I'm awake while everyone else sleeps. 

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Kaitlyn Beard
  • Texas
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Replied Sep 21 2022, 18:18
Quote from @Aj Parikh:

Hi John, it is a good practice to also share with the lender what you are trying to do with your investing journey. They have different loan products that might work for the investment strategy you are pursuing. One of the things that might help with mindset is think as if you are about to buy 5 properties , would you go to different lenders for each? So do all the research and talk to multiple lenders and then make sure you build a long term relationship with the lender. 

If you need help with connecting with national lenders, feel free to reach out. I will be happy to help. 


 Would you say that getting loans with multiple different local lenders or all with the same lender is a better idea? I wasn't sure which way you were leaning in the way you commented. I am just curious because I am unsure what to do for my next property. Thank you!

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David M.
  • Morris County, NJ
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David M.
  • Morris County, NJ
Replied Sep 21 2022, 18:57

@John S Thomson When you are getting conforming loans, all the rates are really the same when it comes time to lock your rate since they are all being resold to the same secondary market.  The loan officers are still in a sales job, so at first they will try to sell you on their rate, generally.  I prefer to find a good, exceptionally competent loan officer.  To me its about service, not the rate they are trying to sell me on.  direct message for a referral if you want (forum rules don't allow posting referrals).

@Kaitlyn Beard I would recommend trying to form a relationship with a good lender.  As you get more properties, it gets more "involved" so you want a loan officer who knows you situation and will work to find a way to qualify you.  My lender will even help with some "financial planning" to see how you can do the next deal...

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Cayden Standlee
  • Real Estate Agent
  • Milwaukee
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Cayden Standlee
  • Real Estate Agent
  • Milwaukee
Replied Sep 21 2022, 19:28

@John S Thomson welcome to the world of REI!

When is comes to getting preapproved, I usually recommend going with a broker. I say this due to their extra effort in trying to get you a better deal. Brokers get paid based on the loan and pre approval that they set up for you. In other words, they are going to work harder to get you a better deal compared to a bank where they are usually getting paid by the hour, meaning whether you get the pre approval or not they go home with money. 

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Tom S.
  • Real Estate Investor
  • Burlington, VT
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Tom S.
  • Real Estate Investor
  • Burlington, VT
Replied Sep 22 2022, 13:39

@John S Thomson  If you're looking to buy in SC but live in VT, I would go with a national mortgage broker.  One credit pull and they can shop around rates.  Many of the local banks in VT only lend in VT or New England.  Some of the smallest only loan in certain counties in VT.  That said, I found for lending in VT the local banks were fairly easy to work with.  Many times the loan officer knew the property in question.

Good luck!

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John S Thomson
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John S Thomson
Replied Sep 22 2022, 16:49
Quote from @Tom S.:

@John S Thomson  If you're looking to buy in SC but live in VT, I would go with a national mortgage broker.  One credit pull and they can shop around rates.  Many of the local banks in VT only lend in VT or New England.  Some of the smallest only loan in certain counties in VT.  That said, I found for lending in VT the local banks were fairly easy to work with.  Many times the loan officer knew the property in question.

Good luck!

Ok thanks have you done any bnb or anything else I'm near rutland do I could probably do something here since Killington and the lakes around most the multi family here in my town where built in the 1800's and they are asking a lot of money for them. I got land but needs a totally new house on it maybe I should start there. But that would only be a single family not sure if I could bnb it I'll check with town. Oh well thank you 

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Tom S.
  • Real Estate Investor
  • Burlington, VT
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Tom S.
  • Real Estate Investor
  • Burlington, VT
Replied Sep 23 2022, 12:46

@John S Thomson I mainly do the BBBR method: buying fixers, rehabbing, keeping them as rentals, and then refinancing and pulling out cash for more investments.  I primarily work in the Washington county area these days, the greater Montpelier area which seems to have a good job market and very low vacancy rates.

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John S Thomson
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John S Thomson
Replied Sep 25 2022, 22:19
Quote from @Tom S.:

@John S Thomson I mainly do the BBBR method: buying fixers, rehabbing, keeping them as rentals, and then refinancing and pulling out cash for more investments.  I primarily work in the Washington county area these days, the greater Montpelier area which seems to have a good job market and very low vacancy rates.

Right I don't have allot of money was looking for something to make cash so I could scale I don't really have years and years.