I got pre-approved for an owner occupant loan!

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I got pre-approved for an owner occupant loan!

Misael Carlos Vera
Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes

As the title says, I was pre-approved for an owner occupant loan in Chambersburg, PA! I plan to house hack so I am now looking for four unit multifamily properties. I'm really excited and just wanted to say thank you to the BP community.

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Bradley Padula
Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
5y

Congrats! Don't get hung up looking for a 4 unit. If you're in the 3 to 4 unit range, and your proposed loan type is FHA (assuming it is?) versus a duplex, make sure it'll pass the FHA self-sufficiency test. Also, FHA inspections are different (more stringent) than conventional mortgage inspections. Research FHA inspections and the main things that would potentially cause an issue (can range from missing handrail, to peeling paint, etc). Once under contract, a handrail is an easy fix for example versus correcting peeling paint) Some multifamilies listed for sale specifically note "No FHA buyers" because they know it won't pass the inspection and/or the seller doesn't want to remedy the issue that an FHA inspector would list on the report, vs a conventional appraiser would would not.

In the meantime, be careful taking on debt, opening up new credit cards, bank accounts, buying a new car etc as this could impact your credit score & debt to income ratio come time for the loan, and in turn could affect your interest rate / how much you can borrow. Best of luck!!

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  • Sam Albury
    Member since 2020 · 45 posts · 24 votes
    5y

    @Misael Carlos Vera Thanks

    1Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Sam Albury Of course! She's absolutely incredible. She introduced me to a lawyer, tax accountant, and insurance broker.

    Talking to her has made me into more of a real estate investor than any book or podcast.

    0Reply
  • Dave PoeppelmeierBusiness Member
    Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
    5y

    Regarding the Student Housing issue, I just rented my only open rental already for next summer and next school year. Students are looking for houses for next year already (typically the start of our student housing season is February), and are saying they want no part of the dorms or apartments due to Covid-19. I'm by a large University, so I feel absolutely fine regarding our demand, but the smaller colleges may feel more of a pinch, but I'm not an expert on that. 

    Podcast Guest on Show #380
    Keller Williams Citywide | Dave Poeppelmeier534 Reviews
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    0Reply
  • Tim S.
    Investor · California, CA · Member since 2016 · 367 posts · 375 votes
    5y

    Not to be a buzzkill, but be aware there are a lot of hurdles between pre-approved, and final approved.  

    0Reply
  • George Allen
    Rental Property Investor · Kihei, Maui · Member since 2019 · 12 posts · 5 votes
    5y

    @Misael Carlos Vera congratulations man! I hope to do the same in the next 6 months. Stay pumped bro!

    1Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Dave Poeppelmeier unfortunately, Ship (the University in question) is facing stagnant student population growth for the past 5 years and the overall student population is 8k. Since freshman can't live off campus we can only really target 6k students.

    0Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @George Allen thank you! Good luck with everything!

    1Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Tim S. Totally not a buzz kill! Ever since I've met this lender, I've been meeting new people to join my team so I'm feeling more and more confident!

    0Reply
  • Patrick Britton
    Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
    5y

    @Misael Carlos Vera ok so looks like everyone is giving you high fives for getting pre-approved.  with all due respect and this is NOTHING against you, but pre-approvals are WORTHLESS.  idiot lenders and morons real estate agents think they are important (they never say why) but presumably it's because they BELIEVE it carries weight.  it does not.  Have a close look at your pre-approval letter and i guarantee it'll say something along the lines of, "this letter is conditional...final approval from an underwriter."  

    Trust me, i WAS a lender and pre-approval letters mean nothing.  so please, for your own sake, don't start the parade yet.  you're on step 2 of 50 and a million things can go wrong, and even when they go right, that doesnt mean it's time to retire.  

    0Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Patrick Britton I absolutely understand! This is only the beginning to closing. I'm just incredibly glad that I am finally in the game! For the past 4 months I've been learning as much as I can but lenders, lawyers, tax accountants, and real estate agents didn't take me seriously until I got pre-approved.

    I know I don't own any properties yet, but I'm finally feeling the first bit of momentum ever since I've decided to become a real estate investor!

    I appreciate the realism and I thank you!

    0Reply
  • Ryan King
    Accountant · Phoenix, AZ · Member since 2020 · 3 posts · 1 vote
    5y

    @Misael Carlos Vera congrats! That’s a big move in the right direction. Best of luck!

    1Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Ryan King thank you very much

    0Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    5y
    Congratulations! You're off to a great start!
    [email protected]
    1Reply
  • Luke Kimball
    Rental Property Investor · Member since 2020 · 6 posts · 1 vote
    5y

    @Misael Carlos Vera im currently actively working for the same thing! Congrats and best of luck

    1Reply
  • Mauricio Valverde
    Rental Property Investor · Harrisburg, PA · Member since 2020 · 11 posts · 0 votes
    5y

    Hello my lender said if I do

    “The mortgage insurance stays on the loan for the life of the loan…it never drops off…”

    So is it a bad idea to get an FHA loan?

    Also is it really possible to get a 3-4 unit with an FHA loan ?? Can someone verify

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    5y
    Originally posted by @Misael Carlos Vera:

    @Andrew Syrios thank you! I love a good read. Ever since I've learned about real estate this August, I've read 22 books!

     That is quite the run of books there! Perhaps a record. Good luck!

    Podcast Guest on Show #121
    1Reply
  • Jaquetta T Ragland
    Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    5y

    @Misael Carlos Vera congrats. Keep us posted on what your journey.

    0Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Jaquetta Turner I will!

    0Reply
  • Gerald M Stroter
    Member since 2019 · 1 post · 1 vote
    5y

    Congratulations!

    1Reply
  • Misael Carlos Vera
    OP
    Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
    5y

    @Gerald M Stroter thank you!

    0Reply
  • Desha Charles
    Investor · MA · Member since 2020 · 19 posts · 8 votes
    5y

    @Misael Carlos Vera Big Congrats!! I'm also new to RE investing, looking to house hack my 1st investment in 2021. I look forward to hearing more of your progress!

    1Reply
  • Shana Jackson
    Investor · Member since 2020 · 2 posts · 1 vote
    5y

    Congratulations!

    1Reply
  • Brenna Williams
    Rental Property Investor · Spokane, WA · Member since 2020 · 3 posts · 1 vote
    5y

    @Misael Carlos Vera Congratulations!

    1Reply
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