Philadelphia, PA · Member since 2017 · 7 posts · 3 votes
My husband and I are ready to take action, and are ready to talk to lenders for our first deal. What type of questions should I ask, and what information will I be asked?
I would appreciate any information.
Thanks! :) Newbies in the making
Before you start hunting for local banks, invest some time in the education materials here on Biggerpockets. Do some lurking on the forums and see what some of the lenders, that may be local to you are saying and the advice they're giving. I guarantee you you'll get a better education and you'll know what questions to ask just by reading and listening.
@Joseph Scorese is a lender in the Philly area and I'm sure he can help you with any questions you may have once you've done your reading.
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
9y
The questions asked will vary by the type of lender you are asking. Hard money lenders and regional banks and large banks will all have different requirements. What kind of lender are you looking for?
Be sure to ask about rates, max LTV, down payment requirements, closing costs, fees, how long it takes to underwrite a loan, DTI limits, what kind of properties do they lend on, etc.
They'll ask you what you need the loan for of course, and they'd probably want to know about how the property cash flows if it is a rental. They'll ask about your financials and credit history as most would expect as well.
Philadelphia, PA · Member since 2017 · 7 posts · 3 votes
9y
Bob Okenwa Thanks so much for your time. Knowing this will help me prepare for the conversations I will be having with the banks. Thanks again!!! You have been of great of great help.
Before you start hunting for local banks, invest some time in the education materials here on Biggerpockets. Do some lurking on the forums and see what some of the lenders, that may be local to you are saying and the advice they're giving. I guarantee you you'll get a better education and you'll know what questions to ask just by reading and listening.
@Joseph Scorese is a lender in the Philly area and I'm sure he can help you with any questions you may have once you've done your reading.
My husband and I are ready to take action, and are ready to talk to lenders for our first deal. What type of questions should I ask, and what information will I be asked?
I would appreciate any information.
Thanks! :) Newbies in the making
I had someone ask me for past client and real estate agent references... once. I thought it was really smart of them, called up some agents and past clients to get their permission, and then made up a references sheet thinking it might become a thing. Nope, just that one person.
I'm actually not sure why it isn't a thing. You're hiring someone to do a job, right?
Thanks so much for your advice, I definitely will take it and continue to educate myself with the material offered here on BP. I will also reach out to @Joseph Scorese once I am ready with questions. Thanks so much again!
Philadelphia, PA · Member since 2017 · 7 posts · 3 votes
9y
@Chris Mason I too wonder why it isn't a thing. Some times it is good to have those real estate agent references and even clients in a reference sheet just to have a starting point. Wish I was in your area so I could ask you for that reference sheet.
Rental Property Investor · Lake Forest Park, WA · Member since 2015 · 127 posts · 57 votes
9y
Karen Ortiz Do you know what type of property you are targeting? The lender you will want to use will likely depend on the loan you need. Some banks will have more competitive terms for conventional residential products while others have much better commercial products.
Some questions will depend on the loan type as well. Such as amortization period, prepayment penalties.
Also, we found that in the area we invest (Class C) that some banks will loan at very low DTI due to the inherent risk. We found that larger national banks were actually giving better terms for our scenario.
To sum it up, I would say to know what product you are looking for and start calling around to see what terms different banks offer and compare.
Best of luck!
Philadelphia, PA · Member since 2017 · 7 posts · 3 votes
9y
@James Lusk Definitely looking to start with single family properties. I will continue do my research and then start calling around to see what they offer and compare. I appreciate your time and advice.
Lender · Beavercreek, OH · Member since 2014 · 36 posts · 19 votes
9y
If you sit down with a commercial mortgage broker, they will ask you questions to see exactly what kind of investing you are looking to do, what your current financial position is, as well as your long term/short term goals are. With that information, they can either provide you with lending sources that you would have been unaware of, or they can steer you in a better direction than you intended to head down.
Your better brokers are performance based, which means that they don't get paid until you close a loan, so any effort you put into picking their brains will be well spent, and can lead to a mutually beneficial arrangement.