Pre-approved tomorrow

14 Replies

I'm really trying to get the ball rolling on REI. I recently found an agent (thanks to BP & she's awesome) and asked where I should go to get pre-approved. She in turn referred me to a Wells Fargo lender. My question is will the dollar amount/terms of my loan change from lender to lender? Do I need to search for other lenders or can I have some faith in this lender?

Do your due diligence and shop around for a lender that will best work for you.  My experience is that true lenders work harder for you than traditional banks.  Unless you are in a special circumstance where Wells Fargo would be the only one to get a particular loan done, I would never ever refer a client to any big bank to get a a loan done. 

Absolutely shop around. My bank (or any bank) would be the last place I go for a mortgage. 

Different lenders will offer different rates and closing costs for the exact same loan at the exact same time. This is why you shop around. Make sure you compare apples to apples and get a good faith estimate regarding closing costs.

On my last loan, one lender had 1/8 point lower rate, but almost $3,000 more in closing costs. Even buying the 1/8 point, I came out ahead by quite a bit.

Perhaps your agent has had success in the past with WF, maybe she even banks there. Maybe she just pulled the name out of thin air.

You should absolutely shop around to find the best rate. Anyone can pre-approve you, and you don't necessarily need to get the mortgage with the company who does the pre-approval.

I don't have any personal experience with WF, but like all big banks, some people love them and others hate them. 

@Arissa Pedroza

What do you mean by true lenders? Like private money/ other investors?

@john yanko 

What I mean is there are traditional lenders and then lenders that are affiliated with a bank. I have found that lenders not affiliated with a bank have access to more loan programs and a variety of rates etc.  Most real estate agents can refer to at least 3 different lenders, Hope that helps!

You should definitely at least be working with 2 different lenders.  Work with wells fargo then work with another one so you have something to compare to.  There is no obligation to proceed with any of them.  Its in your best interest to do this trust me.

I have a great lender that I use for all my investment properties, no minimum loan amount and hes licensed in 48 states.  PM me if you want his contact info.  Would be more then happy to provide this to you.

@Mindy Jensen

I am completely lost with lender, broker, bank, 

Where else do I shop around if not banks?

Also I thought pre- approvals require a credit check, which could affect my credit score right?

Several credit checks from banks for the purpose of a mortgage in a short amount of time tend to get lumped together as one because you are probably shopping around for the best rate. It won't ding your credit too much.

I use a broker, and have for the last 7 times. I just can't find anyone to beat his rates. I also have exceptional credit and don't try to get a loan I can't afford. 

A broker makes the initial loan, and then sells it off so he can continue to make more loans. If you know your credit score, you can call around and get hypothetical rates just to see who you want to do a more in-depth credit search for your pre-approval letter.

@Mindy Jensen  

Good to know about credit checks getting lumped together. How do you find brokers?

Originally posted by @John Yanko :

I'm really trying to get the ball rolling on REI. I recently found an agent (thanks to BP & she's awesome) and asked where I should go to get pre-approved. She in turn referred me to a Wells Fargo lender. My question is will the dollar amount/terms of my loan change from lender to lender? Do I need to search for other lenders or can I have some faith in this lender?

 My local Wells Fargo agent seemed to be alot more knowledgeable than most of the other lenders I've talked to lately. She used to manage a local bank so she had years and years worth of experience

@Joshua Meyers

Very good to hear, I hope that is the same case with this guy I'm dealing with.

Originally posted by @John Yanko :

@Joshua Meyers

Very good to hear, I hope that is the same case with this guy I'm dealing with.

I'm very new to the REI field but a little research goes a long way. Weigh all your options when it comes to financing. I'm looking to go the FHA route right now. I like the option of using only 3.5% down and being able to use other money to put towards funding more deals

@Joshua Meyers

Depending on total cost of investment, I too plan to go FHA, but in my case that saved money would go to repairs in an effort to raise value/rent of building.

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