Lansing, MI · Member since 2017 · 15 posts · 4 votes
Should I jus go get the loan then buy the house I want or do I have to put it under contract then go to the lender with my deal I want to be owner oc so I can get the 3.5% down on the 4plex I want
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Robert Wright if you are looking at owner occupied loans, then you cannot get the loan first. The loans are based on that specific property and will require an appraisal. The bank will not simply give you money and hope you buy something that is worth it. They will do their diligence on the property you want to buy since they are the ones with 96.5% of the risk!
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Robert Wright Most loans are secured by the property. You can't get a $1M loan on a $100K home. You can go to the bank and get prequalified which is usually a prudent action regardless.
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
9y
As mentioned above, go to your lender and get pre-approved 1st. This will entail, making application with the property address being listed as TBD, but you and the lender can have a meaningful conversation regarding all aspects of your loan request and your credit profile. This also give you and the lender the opportunity to explore all loan options, as there are many. Once you have the program nailed down based on your purchasing goals and your credit / income / down payment profile, then go shopping.
In my area, inventory is lacking, so homes are being competed for by many buyers. Realtors will not accept offers from anyone that is not pre-approved, your area may be the same?