Difference between banks and brokers? Need Mortgage 101 help!
There has got to be a wealth of information on BP about this subject but I can't find it! I am interested in the BRRRR strategy and also out of state investing using conventional mortgages but want to get the best terms possible, and know that I an working with a lender who will refi when the time is right (after new ARV, seasoning, etc). Whenever folks talk about the BRRRR strategy, they just kind of gloss over how they are getting the financing piece done. How do you find lenders that understand and agree to this strategy? Are you using brokers? Are you cold calling banks? From the yellow pages or Google or what? Who do you ask for? What are you saying? What are you asking? I have NO idea how to do this and am really looking for some step by step guidance. Also, if I'm looking to invest out of state, do I need to be calling banks in that area?
Also, we just refinanced our house from an FHA to a conventional loan so we could potentially house hack with a new FHA on our next property, and we did this through a broker. Do you have success with brokers or should I always go direct to banks?
If there are posts or articles or books that address these questions, I would really appreciate the links. And of course, any direct advice would be much appreciated!
Cat