Shopping Lenders and Preapprovals: HMLs and Refinancing

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Shopping Lenders and Preapprovals: HMLs and Refinancing

Jewel B.Pro Member
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes

Happy Tuesday everyone,

It is time for me to reach out to HMLs, as well as potential lenders for the refinancing portion of BRRRR, in order to find the best fit and get preapproved. I'd like to know the best method of doing so - phone call? Online contact form? E-mail?

Should I have some time of e-mail drafted that I can blast out to several different potential lenders to see if they can help me at a glance, without having to fill out a ton of applications right off the bat? If so, what should I say and what kind of information should I include?

Thanks!

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David Bilandzija
Lender · Venice, CA · Member since 2021 · 189 posts · 132 votes
3y

@Jewel B. Congratulations on reaching the refinance stage with your BRRRR. You can certainly take a stab at approaching lenders on your own just know that using a mortgage broker can shorten up the process and potentially save you capital in the long run.

Programs are always changing and what works today may not be around tomorrow.  A qualified mortgage broker can hone in on your profile and offer funding solutions that best suit your specific scenario. Then there are the intangibles as well, it frees you up to focus on your projects, work or even finding that next deal.  Best of luck!

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  • David Bilandzija
    Lender · Venice, CA · Member since 2021 · 189 posts · 132 votes
    3y

    @Jewel B. Congratulations on reaching the refinance stage with your BRRRR. You can certainly take a stab at approaching lenders on your own just know that using a mortgage broker can shorten up the process and potentially save you capital in the long run.

    Programs are always changing and what works today may not be around tomorrow.  A qualified mortgage broker can hone in on your profile and offer funding solutions that best suit your specific scenario. Then there are the intangibles as well, it frees you up to focus on your projects, work or even finding that next deal.  Best of luck!

    5Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @David Bilandzija:

    @Jewel B. Congratulations on reaching the refinance stage with your BRRRR. You can certainly take a stab at approaching lenders on your own just know that using a mortgage broker can shorten up the process and potentially save you capital in the long run.

    Programs are always changing and what works today may not be around tomorrow.  A qualified mortgage broker can hone in on your profile and offer funding solutions that best suit your specific scenario. Then there are the intangibles as well, it frees you up to focus on your projects, work or even finding that next deal.  Best of luck!

    Thanks! To add clarity though, I'm actually still on the B stage, but I've seen and heard a lot of recommendations to talk with a refi lender from the getgo.
    0Reply
  • Jacob SloopBusiness Member
    Rental Property Investor · Virginia Beach, VA · Member since 2020 · 274 posts · 111 votes
    3y

    Yes , its smart to have the refi figured out ahead of time, although that's not to say terms and rates aren't going to change so be aware.

    Id recommend finding a mortgage broker, they can do the shopping for you.

    Also, there was a guy on the podcast from Lehigh Valley,  I would try to find him,  I remember it being a particularly good episode

    [email protected]757-235-0369
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    1Reply
  • Adam Bartling
    Lender · Rosenberg, TX · Member since 2022 · 286 posts · 130 votes
    3y

    @Jewel B. I am speaking to 3 people right now who got HML for a flip but the flip is not sold and the must Refi, bad thing is their credits are sub 650. Yes we can do HML also but I warn people about this scenario, there are not many private lending institutions that will lend to under 660FICO, and typically they have a higher min. $200K.

    One way to mitigate this is to get a partner that owns 25% + of the LLC and has a 700+ FICO. We can use their FICO as the qualifier.

    And you are correct, as a Broker I do all the shopping for you. We are 100% commission.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Jewel B.:

    Happy Tuesday everyone,

    It is time for me to reach out to HMLs, as well as potential lenders for the refinancing portion of BRRRR, in order to find the best fit and get preapproved. I'd like to know the best method of doing so - phone call? Online contact form? E-mail?

    Should I have some time of e-mail drafted that I can blast out to several different potential lenders to see if they can help me at a glance, without having to fill out a ton of applications right off the bat? If so, what should I say and what kind of information should I include?

    Thanks!


     Hello Jewel, 

    The best thing you can do is talk to a mortgage broker. Many new clients come to me from failed closings or terms changing. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Brandon BeardtPro Member
    Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
    3y
    Quote from @Jewel B.:

    Happy Tuesday everyone,

    It is time for me to reach out to HMLs, as well as potential lenders for the refinancing portion of BRRRR, in order to find the best fit and get preapproved. I'd like to know the best method of doing so - phone call? Online contact form? E-mail?

    Should I have some time of e-mail drafted that I can blast out to several different potential lenders to see if they can help me at a glance, without having to fill out a ton of applications right off the bat? If so, what should I say and what kind of information should I include?

    Thanks!


     Hi Jewel,

    I'd recommend working with a mortgage broker as they have access to many different types of lenders with various loan programs that could be best suited for you. They'll save you time as they do the work of searching for the best lender for your situation. Also, do the research and read reviews on them before spending your time & energy contacting & explaining your goals with them. Your time is valuable and better off spent finding deals, so work with reputable people who will make your life easier. Most lenders ask for the same basic initial information; what your goals are, what market you're looking in, budget, FICO, liquidity, etc, so having some these readily available will help. Best of luck to you!

    [email protected]818-726-2418
    1Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @Jewel B.:

    Happy Tuesday everyone,

    It is time for me to reach out to HMLs, as well as potential lenders for the refinancing portion of BRRRR, in order to find the best fit and get preapproved. I'd like to know the best method of doing so - phone call? Online contact form? E-mail?

    Should I have some time of e-mail drafted that I can blast out to several different potential lenders to see if they can help me at a glance, without having to fill out a ton of applications right off the bat? If so, what should I say and what kind of information should I include?

    Thanks!


     The best time to plant a tree is 20 years ago.  The second best time to plant a tree is now.  You're on the second best time to talk to a mortgage broker.  It would have been best to have the exit strategy more concrete before purchasing the property.  I would post the particulars of your loan in the Classified section of BP and just let the process begin.  You'll get contacted by every mortgage broker and their Mom.  Pick a couple and ask what their process is like; ask where they are with rates and fees and turn times.

    All the best

    Stephanie

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Adam Bartling:

    @Jewel B. I am speaking to 3 people right now who got HML for a flip but the flip is not sold and the must Refi, bad thing is their credits are sub 650. Yes we can do HML also but I warn people about this scenario, there are not many private lending institutions that will lend to under 660FICO, and typically they have a higher min. $200K.

    One way to mitigate this is to get a partner that owns 25% + of the LLC and has a 700+ FICO. We can use their FICO as the qualifier.

    And you are correct, as a Broker I do all the shopping for you. We are 100% commission.


     My credit score is just under 800, so that's no concern of mine :)

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Stephanie P.:
    Quote from @Jewel B.:

    Happy Tuesday everyone,

    It is time for me to reach out to HMLs, as well as potential lenders for the refinancing portion of BRRRR, in order to find the best fit and get preapproved. I'd like to know the best method of doing so - phone call? Online contact form? E-mail?

    Should I have some time of e-mail drafted that I can blast out to several different potential lenders to see if they can help me at a glance, without having to fill out a ton of applications right off the bat? If so, what should I say and what kind of information should I include?

    Thanks!


     The best time to plant a tree is 20 years ago.  The second best time to plant a tree is now.  You're on the second best time to talk to a mortgage broker.  It would have been best to have the exit strategy more concrete before purchasing the property.  I would post the particulars of your loan in the Classified section of BP and just let the process begin.  You'll get contacted by every mortgage broker and their Mom.  Pick a couple and ask what their process is like; ask where they are with rates and fees and turn times.

    All the best

    Stephanie


     Hello Stephanie. I have not yet purchased a property. Lining up the exit strategy before purchasing a property is exactly what I'm currently trying to do :)

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @Jewel B.:
    Quote from @Stephanie P.:
    Quote from @Jewel B.:

    Happy Tuesday everyone,

    It is time for me to reach out to HMLs, as well as potential lenders for the refinancing portion of BRRRR, in order to find the best fit and get preapproved. I'd like to know the best method of doing so - phone call? Online contact form? E-mail?

    Should I have some time of e-mail drafted that I can blast out to several different potential lenders to see if they can help me at a glance, without having to fill out a ton of applications right off the bat? If so, what should I say and what kind of information should I include?

    Thanks!


     The best time to plant a tree is 20 years ago.  The second best time to plant a tree is now.  You're on the second best time to talk to a mortgage broker.  It would have been best to have the exit strategy more concrete before purchasing the property.  I would post the particulars of your loan in the Classified section of BP and just let the process begin.  You'll get contacted by every mortgage broker and their Mom.  Pick a couple and ask what their process is like; ask where they are with rates and fees and turn times.

    All the best

    Stephanie


     Hello Stephanie. I have not yet purchased a property. Lining up the exit strategy before purchasing a property is exactly what I'm currently trying to do :)


     You're on the right track then.  Well done.

    0Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    3y

    Most HMLs aren't a great fit for the refi portion.  HMLs are usually for the purchase and reno and then you would seek long term financing with a local bank/credit union.

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Most are not going to give you any terms before you apply, best they can do is estimate what your loan terms are going to look like. 

    0Reply
  • Dami F.
    Investor · Aston, PA · Member since 2020 · 38 posts · 16 votes
    3y
    Quote from @Ian Walsh:

    Most HMLs aren't a great fit for the refi portion.  HMLs are usually for the purchase and reno and then you would seek long term financing with a local bank/credit union.


     I kept reading the thread hoping someone would tell him the truth and not just look to get business. Funny I see that you're in Philadelphia. I have a F&F in Media, PA. DM me let's talk.

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Ian Walsh:

    Most HMLs aren't a great fit for the refi portion.  HMLs are usually for the purchase and reno and then you would seek long term financing with a local bank/credit union.


    HML is for the purchase, yes. It is commonly recommended to line up both at the same time for BRRRR.

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Dami F.:
    Quote from @Ian Walsh:

    Most HMLs aren't a great fit for the refi portion.  HMLs are usually for the purchase and reno and then you would seek long term financing with a local bank/credit union.


     I kept reading the thread hoping someone would tell him the truth and not just look to get business. Funny I see that you're in Philadelphia. I have a F&F in Media, PA. DM me let's talk.

    I'm looking for HML for purchase and a separate lender for refi. Not sure where everybody is getting that I already purchased a property and want to refi with a HML from lmao Furthermore, no one here has actually answered my question even. I have a number of lenders recommended to me or in mind. I simply wanted to know the best method of contact.

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y

    Guys, I already have lenders in mind. I was simply asking the best method of contact...

    0Reply
  • Ash Hegde
    Lender · Fort Lauderdale, FL (Lending in FL CT GA MI PA) · Member since 2022 · 470 posts · 349 votes
    3y

    A phone call is probably best. It's an investment of time on your part up front but you'll get to see if they actually pick up the phone or how long it takes them to call you back, how knowledgeable they are in the conversation, and build a rapport/relationship. 

    There are many brokers who have lender contacts for hard money as well as conventional/DSCR for the refi portion. The lender for each step might be different but you may be able to have the same point of contact for both.

    0Reply
  • Marty JohnstonPro Member
    Lender · Wauwatosa, WI · Member since 2016 · 571 posts · 203 votes
    3y

    @Jewel B. others stated similar things, but any good lender or broker should be able to provide you with plenty of information over the phone, and those brokers with established relationships should be able to even price out your deal with multiple lenders over the phone in about 10-15 minutes for your projects as they have access to their lender's pricing / calculators. Find a good broker. If you do, they'll save you your invaluable time, and even though you pay a broker fee, they can pay you back 3-10x in savings by finding the beat loan program for you by understanding whats most important to you (highest leverage most important to you? Lowest costs/fees? Balanced option/somewhere in between?) I promise you wont be disappointed! 

    [email protected]414-600-0123
    0Reply
  • Marty JohnstonPro Member
    Lender · Wauwatosa, WI · Member since 2016 · 571 posts · 203 votes
    3y
    Quote from @Jewel B.:

    Guys, I already have lenders in mind. I was simply asking the best method of contact...

    To this point, lol. I always love calls from clients. Most efficient, you eliminate the back and forth questions and get to an answer and terms asap. In my experience speed, efficiency, and accuracy make everyones world go round. Phone calls hit all three of these. Even emails that include EVERYTHING can make eyes glaze over. So if debating between the two - start with a call. Followup with emails with any requested details thereafter IMO 👍
    [email protected]414-600-0123
    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y

    Thanks everyone, especially Ash and Marty haha

    1Reply
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