Rental Property Investor · Alexandria, MN · Member since 2015 · 19 posts · 7 votes
Hello, I currently have three SFH, the last one I paid fully with a loan on my home. I am searching for my 4th sfh or multifamily. Initially I wanted to get a mortgage on this next property, but after doing research, I learned the costs are less with a loan on my fully paid rental. I have been reading about people using helocs also, but I am not sure with the variable rate if I would want to take that risk. I am thinking on getting a 15 or 30 yr loan which I could pay sooner but how soon would I have to pay it to avoid the rate change?
This is what I am doing: I have contacted a few lenders and filled my application. I am asking for mortgage rates and also loan rates for 15 and 30 yrs with 1 and 2 points. After I get all that, of course, I will choose the product where I can save the most.
I would like to hear your thoughts about this, I am still learning as I go, I think this is the best way to do this, but I wanted to share with bigger pockets. I have listened to podcasts or read forums where people shared something and got a much better way to do things and if not, there is always tons of good advice!!
Just make sure if your talking to 3-4 lenders they are not all pulling credit as it can effect scores. Regardless of the myths of softpull and cosing in a 45 day window, they still stay on as inquiries. The other thing is if you are paying a true "rate discount point" then its okay. Just do not pay lender or broker points if you have good to excellent credit...
Be sure to ask for more than just one quote for more than just one program. Find out what each lenders average turn time is another words can they close in under 30 days. Also make sure they are offering a 30 day rate lock quote and they do not have any overlays. Anthying required such as monthly PITI reserves if so how many months per rental.