Property Manager · Novato, CA · Member since 2018 · 29 posts · 5 votes
Hello All,
My name is Makala Lee-Norwood and I am super new to the Real Estate industry. I am looking to purshase my first multi-family home and would like to get an FHA loan to help me get started. I thought I would reach out to you all and see your opinion on whether to go to a bank to inquire about the FHA loan or go through a mortgage or bank broker. I appreciate all the feedback I can get.
Sorry to not be more specific...but this is going to be totally up to your criteria, preferences, etc. I know a lot of investors who don't want to touch the "big banks" with a 10 foot pole, while others have no problems with them at all. However, in general I see more people singing the praises of smaller, local banks and brokers than the big banks. You seem to get lost in the paperwork and process with the bigger guys.
@Makala Lee-Norwood yeah, I might reference you to post in the California forum for some good recommendations on this (if that's where you are buying the property). Local people might be able to give you some good references but this is going to be up to who you like in the end. Think of it like a mechanic in a way...they can all change your oil but some will treat you different, or get it done faster, and most will be around the same rate on a loan like this. I will give you a few hints on who to use when you interview a lender:
You are the customer. If they aren't happy to see you, or if you feel the vibe that they have better things to do, then this is a sign to go elsewhere. They should feel privileged to speak to you...not the other way around.
They should be able to give you specific advice. As a new home buyer you might be so new that you don't even know what to ask! So the lender should be able to give you specific details of what to expect. For example:
How much money out of pocket do I need?
What is the difference of the "cash to close" and my "down payment"?
How much money to I need to make an offer?
What is a closing time for this type of a loan? If I need 5 days shorter to get this deal, can you do it?
What is the difference between being prequalified and preapproved?
Is an FHA loan the right loan for me? Are there other loan types out there?
The lender should also be using rental income to qualify you for this loan. This may not be absolutely necessary depending on your income level but if they can use rental income to qualify you then that usually means the lender is more flexible than other lenders with their loans.
*WHEW* Lot's to know right? Feel free to tag me if you have any other questions. Good luck!
Whew, yes that was a ton of information but I appreciate every bit of it. Thank you for taking the time to reach out to me, I will consider all of this when making my final decision.