Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
6y
@Elliott Wolf are you specifically looking for a bank or a mortgage broker? try connecting with @andrew postell - he's a great mortgage broker here in DFW who works with Investors.
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
6y
@Elliott Wolf are you specifically looking for a bank or a mortgage broker? try connecting with @andrew postell - he's a great mortgage broker here in DFW who works with Investors.
New to Real Estate · Dallas, TX · Member since 2019 · 22 posts · 8 votes
6y
@Lucia Rushton That's the part I am still confused on. I've narrowed down my choice to FHA loan... would I have to through a traditional bank or would a mortgage broker work in this situation?
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
6y
Mortgage brokers can assist you. Plus there are conventional loans with a 3% deposit. But I will allow the professionals to discuss this with you further.
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
6y
@Elliott Wolf Absolutely agreed on getting pre-Q, it makes a huge help in the process especially if it's a competitive market/property. The difference is having choices and sometimes if you are a FTHB there are programs and grants that not every bank can/do offer. Don't get me wrong, I am not against banks, if you do go that route, having a local/portfolio style bank can be helpful to create a long-term relationship.
I have a bank contact as well if you'd like to DM and I will provide his contact info.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
6y
@Elliott Wolf thanks for posting here. Always great to hear from fellow Texans. I can provide some assistance here but I'll probably just speak on concepts and if you have any questions on them feel free to keep asking. Also, Bigger Pockets even has a great Texas forum if you ever want to post in there it's got some pretty friendly contributors.
FHA loans are terrific loans. They allow low downpayments (3.5%) and they are more flexible than other loan types when it comes to income and credit requirements. You can even purchase a 2-4 unit property with that same low downpayment. Now, they do have some drawbacks, like the PMI is a LOOONG time on their loans currently (if you know what PMI is) and they do have higher closing costs. So when we do find a lender, let's make sure to ask them what the "pros" and "cons" are to them just so we know all the details. Also, just in case, FHA loans are ONLY for primary homes. Meaning, you have to live in them. I am saying this since this is mostly an investment property website and sometimes there is some confusion even here on this. But as long as you are inhabiting the property, you can certainly try to get prequalified for their loan.
Now, to address your original question - who do I use? And I firmly agree that you looking for a referral is a preferred method. Getting a referral is ALWAYS preferable to going to call around to different lenders. And that's another reason why the "Texas" forum might be a good place.
But also, when you go and shop for a home, you don't pay for your realtor. The seller does. This means using a realtor as a BUYER is always in your best interest. They negotiate on your behalf, can help you find properties quicker, and usually have a good lender that they work with. So you and I, maybe we buy a property every 7 years or so as a primary home. While a realtor might use a lender 7 times PER MONTH. So he/she can really see who is good or bad because they work with lenders so frequently. So if you would like to use a realtor in your search, and I would highly recommend this, then lean on him/her on who they suggest.
Now, once you DO have a lender identified, I would like for you to ask some questions to the lender. Remember, you are interviewing THEM. Not the other way around. They should accommodate you and vibe with you. They should also be knowledgeable enough to answer these types of questions. Here's the list:
Is an FHA loan the best loan type for me?
What are my "out of pocket" costs going to be to purchase a home?
How long does it take for you to close an FHA loan?
How can you make my prequalification letter look better than other prequalification letters from other offers that I might be competing against?
What goes into getting prequalified?
Do you sell your loans to other lenders?
Can I qualify for a downpayment assistance program?
What is the downside to using a downpayment program?
Will having an FHA loan restrict me from other loan in the future?
What does the condition of the property need to be in for me to use an FHA loan on it?
*WHEW* I hope this wasn't too much. When I made my first offer on a home...I didn't even know WHAT to ask. So I hope this helps you feel more comfortable with it. Anyways, feel free to reach out if you need anything else. Thanks!