Pre-Approval and Private Funding

3 Replies

Hey all!

I am planning on buying a single family home in northeast Ohio to rent out. I have 1 other rental that was my first house that I rent out in the same area. I get a ton of lending companies sending me me pre approval letters in the mail like SoFi, Best Egg, Discover, Paypal, American Express like many of you, I am thinking. I was thinking of just using one of those companies to lend me say 60 to 70k to buy next property and then just get a mortgage with a lower rate once it is rented. 

Well, I just spoke with a real estate agent locally and they said they would not show me properties unless I have pre approval info that I could give her for her to show my houses. Is there a way to get pre approval info from these types of lenders or do get the letter from a mortgage company or do I find another realtor? Any advice?

Thanks,

John

 

@John Lorince I'd suggest explaining that you own a few properties and what your plan is. It sounds like the agent wants to make sure you're able to close on the property without any financing hiccups or issues. Many of the better agents won't invest their time with someone who doesn't have their financing in order.

Some of the mortgage brokers may want to chime in, but why wouldn't you go conventional from the get-go? Or is there an issue with qualifying without the rental income?

@John Lorince I'd suggest explaining that you own a few properties and what your plan is. It sounds like the agent wants to make sure you're able to close on the property without any financing hiccups or issues. Many of the better agents won't invest their time with someone who doesn't have their financing in order.

Some of the mortgage brokers may want to chime in, but why wouldn't you go conventional from the get-go? Or is there an issue with qualifying without the rental income?

Originally posted by @John Lorince :

Hey all!

I am planning on buying a single family home in northeast Ohio to rent out. I have 1 other rental that was my first house that I rent out in the same area. I get a ton of lending companies sending me me pre approval letters in the mail like SoFi, Best Egg, Discover, Paypal, American Express like many of you, I am thinking. I was thinking of just using one of those companies to lend me say 60 to 70k to buy next property and then just get a mortgage with a lower rate once it is rented. 

Well, I just spoke with a real estate agent locally and they said they would not show me properties unless I have pre approval info that I could give her for her to show my houses. Is there a way to get pre approval info from these types of lenders or do get the letter from a mortgage company or do I find another realtor? Any advice?

Thanks,

John

Most Realtors are going to require a pre approval. You want to reach out to traditional lender for a pre approval as without it you're not a good bet for the agent. Requiring the pre approval is a way to ensure they are screening out people who aren't able to close a transaction. They are in the game to make money so any of them who are any good will do this as well. If you found one who didn't that's a red flag. They are either new to the biz or not good at the job and are grasping at straws trying to find clients.