Where should I get pre-approved?

Question

I want to get started with my real estate journey and get pre-approved for a loan. Should I use a mortgage broker locally or do it online? How did you find yours? How do I get the best rates?

I only have 1 year of tax returns so far. What materials do I need to get pre-approved? Is having 1 year of salary enough? I have my own LLC and made 80k after-taxes.

Jennifer Voegele · Answer

I would definitely suggest calling several different lenders, both local and national.  I just went through the pre-approval process with a couple lenders and they required 2 years of tax returns and income documentation.  The requirements could vary a lot depending on the type of property you are considering and the loan product you want.  Call around and find out what kind of loans they can offer and what their requirements are. Once you have identified the right loan program and who can offer it - then you can compare rates.

Share Ross · Answer

Hey @Jimmy Lieu as a realtor, I can tell you a local mortgage lender (to the area you are investing in) will get you to the closing table WAAAAAY faster than any bank. In fact, I have sellers who won't take an offer if it's with a bank mortgage as they tend to go sour fast and it's underwriting mortgages is not a bank specialty. If you are looking to invest in southeast Florida ... let me know and I can suggest a couple of award-winning lenders who will take very good care of you.

Congrats on beginning your journey!

Basit Siddiqi · Answer

@Jimmy LieuDo you know what area you want to invest in?Banks/Credit Unions normally invest in area's that they have a branch/location in.I.E. A bank in NY with no location in Florida will normally not make mortgages in Florida.Regarding using a broker vs talking to an agent directly.I would first talk to some lenders directly. There is no harm in calling a bank to see if you qualify for a mortgage based on the information that you provide to them.If a bank says they will not finance you, call atleast 10 more banks before giving up.Good luck!

Theresa Harris · Answer

@Jimmy Lieu  Go to a local bank or credit union.  When you call to make an appointment, they should tell you what you need to bring.

Jon Reed · Answer

I prefer local banks vs. online banks. So, go to 3-4 local banks in your area and talk to them... ask them these questions. They will be happy to help you out.