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.

267-981-2928
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.

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

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