Pre-Approval from lender for B&H?

2 Replies

Hi BP!

I am on the hunt for my 1st buy and hold...

I have been in touch with a few realtors and they suggest a pre-approval from a lender while we concurrently search..

I did go through the conventional loan process for my primary residence here in California but have not done so for a rental property (out of state). What are the major differences from a primary residence to a rental property? Since I am searching for a buy and hold out of state, do things get complicated? Just looking for some tips and advice.....

Would things differ if I find a foreclosure?

Anything against Quicken loans? Or should I use a bank? etc....etc...

Thanks all!!!

I am no expert in this yet but I would say it depends on what you are looking to buy. If what you are looking for is a small 2-4 unit or a SFH as a rental than getting pre-approved may not be a bad idea. If you are looking for a larger property than you need to communicate with your realtor and determine if they understand what it is you are looking for. If a larger property is what you are looking for you may need to determine if the realtor you have is the best fit for you. Most larger properties require a commercial loan and they do not normally provide pre-approvals like residential loans do. They lend based on the deal. Make sure you and your realtor are on the same page.

Originally posted by @David Carbajal :

Hi BP!

I am on the hunt for my 1st buy and hold...

I have been in touch with a few realtors and they suggest a pre-approval from a lender while we concurrently search..

I did go through the conventional loan process for my primary residence here in California but have not done so for a rental property (out of state). What are the major differences from a primary residence to a rental property? Since I am searching for a buy and hold out of state, do things get complicated? Just looking for some tips and advice.....

Would things differ if I find a foreclosure?

Anything against Quicken loans? Or should I use a bank? etc....etc...

Thanks all!!!

 Find a lender local to the state you are buying in. Locality-specific things come up on ~50% of transactions or so, you don't want someone 5 states away.

Ideally find an investor-friendly lender local to the state in question that knows how to use rental income well.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.