I am just starting out and trying to navigate the first steps I need to take. My goal is to find a duplex that needs a bit of work, since my partner is able to do repairs and has connections that can help us. My understanding is that I need to have approval for a loan, so I was considering going to my bank (Navy Federal) to find out what they can offer. Is this a good route? Should I approach multiple banks? I don't want to get bogged down with this first step...
Thank you for any support or advice.
If you're buying a home to live in, you can look into renovation financing such as FHA 203k or Fannie Mae HomeStyle, though unless your friend is licensed as a general contractor he won't be able to any major repair work. Navy Federal should be able to help with a loan like this, though you're always betting on the safe side when you shop around for the best terms. VA loans and standard FHA loans have strict guidelines for the condition of the property, so if you're buying a fixer-upper with one of these it needs to be very light rehab work (basic cosmetics, cleanup, etc).
IMO, yes you should approach multiple lenders (at least 3) and at least have the conversation about rates and terms. Getting your credit in order is also a great idea, if it isn't already >700 (for best rates/terms, 720+). You definately want to be pre-approved before talking with an agent or offering on properties (unless you're wholesaling/assigning)
Thank you! I will make sure to check with multiple lenders, at least to get a sense of their terms.
Congrats on taking the first steps towards buying your first fixer upper. This can certainly be a fun endeavor and working with the right team is the first piece of the puzzle to ensure it is a great experience. The FHA 203K is perfect for what you want to accomplish and I would certainly call around to a few lenders to get a feel for how they work, each lender is slightly different. I have worked with many clients on Renovation loans and I have learned that no two scenarios are exactly the same so the ability to be flexible is extremely important with the lender you choose.
Just an FYI I don't believe Navy Federal offers the FHA 203K (I could be wrong) from what I have seen.
Ask any questions you may have and good luck!
Fannie mae's home style is another way to go but the FHA 203k is a better way to go. Pm me for a good referral in Md