Shopping for loans in Ohio. First time buyer.

21 Replies

Hey everyone,

I've looked through some of the other posts on this topic but didn't notice anything for my state.

I'm brand new to REI and I'm looking to house hack MF; probably a duplex. I've talked a little bit to two different lenders but I'm worried about what I don't know, which is probably a lot.

I've never had a mortgage before and I'd like to find something with a 3-5% down payment if possible.

My questions are:

What things should I be looking for from a good lender? What questions should I ask them?

Does anyone have any recommendations for lenders in the Central Ohio market? I have received one from a BP member already.

Am I correct in my understanding that shopping around and filling out several applications will only be reflected as one hit on my credit score?

Thank you all in advance for your time and input.

Typically, its 45 days that you can shop around for different lenders with only getting one hit on your credit. Don't be afraid to ask lenders, they all want your business. They know people shop around.  If you find you like a lender better, ask them if they can match rates that you find at other banks. Some will do so. Be careful though, if they have lower interest rates, they may charge you points. Ask your lender to explain to you about such things. Definitely look for a lender that is very informative with your options on types of loans. Also, ask others for reputable lenders that they have used or the realtor that you are working with. It can be very frustrating if they can't get you to the closing table and on time.

What to look for: Responsiveness.  You want someone who will answer your questions and be willing to move quickly when you find something you're interested in.  Generally speaking, I don't think you will find a lender that is considerably cheaper than another so I look for responsiveness and willingness to explain things so I'm comfortable with each step and I can prepare for what's coming.  

Recommendations: I wasn't happy with my last lender so if you find someone you like please let me know, too!  I'd suggest whenever they give you a rate always ask if that includes points. 

Credit Rating: Here is a good article.  You generally have a 14-45 day window to shop around.  I think I was told 2 weeks.

https://www.equifax.com/person...

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@Stuart Hoffman I have great references of lenders I have worked with in the past here in the Dayton area. If you want I could send you their info and you can chat with all of them if you want some variety!

I would reach out to Mike Dissett at Union Bank Co. (different than union bank). A couple weeks ago I was able to lock in a 3.5% interest rate while paying 0 points for a 30 year fixed rate on a non owner occupant turnkey duplex investment property in Columbus Ohio. I looked at around 10 other lenders, and nobody else came close, although Wells Fargo and chase were able to match but had slightly higher closing costs.

@Stuart Hoffman investment properties requires min 20% down + closing. If you are looking to pay 3-5% on a duplex, then buy as a primary residence. Live on 1 side and rent other side out

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Originally posted by @Isaac Hayes:

I would reach out to Mike Dissett at Union Bank Co. (different than union bank). A couple weeks ago I was able to lock in a 3.5% interest rate while paying 0 points for a 30 year fixed rate on a non owner occupant turnkey duplex investment property in Columbus Ohio. I looked at around 10 other lenders, and nobody else came close, although Wells Fargo and chase were able to match but had slightly higher closing costs.

 Where are you looking to purchase in Columbus, Ohio

@Remington Lyman so far I’ve narrowed it down to A and B zip codes (defined in a document from Zeke at Reafco), and in the near future I’d like to narrow that down from around 20 zips to 5. Right now I have a deal locked up on the outskirts of campus. What areas in Columbus do you target, and why?

Originally posted by @Isaac Hayes:

@Remington Lyman so far I’ve narrowed it down to A and B zip codes (defined in a document from Zeke at Reafco), and in the near future I’d like to narrow that down from around 20 zips to 5. Right now I have a deal locked up on the outskirts of campus. What areas in Columbus do you target, and why?

North Linden, South of Main, Vassor Village, Woodland Park, MT Vernon, Milo-Grogan, Franklinton, Merrion Village, Hungarian Village, Southern Orchards, Driving Park, Olde Towne East, Franklin Park, King Lincoln, Old Oaks, Livingston Park are all but not limited to some areas in Columbus, Ohio I think will gentrify quickly and make for great long term buy and holds.

Originally posted by @Stuart Hoffman:

Hey everyone,

I've looked through some of the other posts on this topic but didn't notice anything for my state.

I'm brand new to REI and I'm looking to house hack MF; probably a duplex. I've talked a little bit to two different lenders but I'm worried about what I don't know, which is probably a lot.

I've never had a mortgage before and I'd like to find something with a 3-5% down payment if possible.

My questions are:

What things should I be looking for from a good lender? What questions should I ask them?

Does anyone have any recommendations for lenders in the Central Ohio market? I have received one from a BP member already.

Am I correct in my understanding that shopping around and filling out several applications will only be reflected as one hit on my credit score?

Thank you all in advance for your time and input.

1. Ask them their interest rates, points, seasoning periods, required documents needed, and closing time.

2. Theres many lenders I would recommend in Columbus for varying purchases.

3. If you apply to multiple at the same time it shouldn't hurt your credit as much. I'm not sure if they get bundled into 1 pull technically though. 

@Stuart Hoffman I've found that many lenders selling to the secondary market offer pretty similar programs. Since it's all coming from the same tree. Once you get into portfolio loans is when you'll start see some key differences. The major things I see for secondary market lenders is there ability to close the loan. Whether that's strategizing debt to income or other things. Personally I've maxed out VA loans in Columbus and got denied by many lenders.. but then finally found that one that got me through the cracks. Again it's about who can service at the end of the day!

I would shop around as well. As @Marc Rice said it shouldn't affect your credit much and ultimately gives you more leverage. 

@Stuart Hoffman

3-5% is only going to be possible on an FHA loan.

The lender/broker you choose should be familiar with house hacking and what it is you are trying to do.  If they are not familiar you will get a lot of dumb questions and obstacles in the way that only slows things down.

FCRA (Reg. V) states that mortgage inquiries within 30 days of each other will count as one inquiry in terms of your credit report. Those documents submitted, such as a credit report to the lender, may expire within 60-90 days, depending on the lenders guidelines. Mortgage inquiries also hit lighter than say automotive shopping inquiries, normally only a 2-7 points max.

Cheers!