• Are you a direct lender or broker?
• What types of loans do you offer?
• Will you communicate directly with the listing agent on the properties I make offers on?
• Where is the source of the money that you lend?
• Do you have access to down payment assistance programs that I can apply for?
• What information do you need from me in order to determine the best loan for my situation?
• How long does it take you to provide a pre-approval letter?
• Do you offer any rate lock programs?
• Can you provide references from within the BiggerPockets community?
• Can you help me find other real estate professionals?

• Compare rates and terms from multiple lenders on the same day.
• Ensure that you ask your lender about what may change between your initial loan estimate and the final rate and terms.
• If your loan is a private money loan, understand what may change while you are under contract and what could cause your financing to fall through.
• Consider the reliability of your lender in addition to comparing rates. The lender with the lower interest rate may not always be the best lender for you.
• Carefully consider the pros and cons of fixed rate vs adjustable rate mortgages.

Note: The actual down payment requirement may differ and depends on a variety of factors including income and credit score.

APR

APR stands for annual percentage rate. It represents the total yearly cost of borrowing money expressed as a percentage of the principal loan amount.

Interest Rate

This is considered the rate of interest on your mortgage note. It is less useful for comparing between lenders because the interest rate does not include fees that are a direct cost of borrowing money.

Points

Points are a one-time fee charged by a lender expressed as a percentage of the loan amount. Work with your mortgage originator to determine if this is worth doing based on your unique situation.

Fees

There may be other fees associated with underwriting a loan. Ask your lender to disclose these fees upfront.

Note: Conventional lenders are required to provide a loan estimate. Private money lenders are not held to this standard and receive very little regulatory oversight. They are not recommended for inexperienced investors.

• A direct lender lends their own money and has more influence over the underwriting process, but they may offer fewer loan types.
• A broker connects borrowers with lenders, can compare lenders for the best rate and terms, but charges a fee for their services.

Note: Some lenders are both direct lenders and brokers, lending their own funds for some loans and brokering others.

• A private money lender provides loans from a private source strictly for non-owner occupied investment properties.
• Hard money lenders underwrite loans based on the hard asset rather than the borrower's qualifications.
• Conventional lenders offer common financing options like FHA and VA loans.
• Commercial lenders specialize in large income-producing properties like retail or residential multi-family complexes.

Conventional lenders must have a national NMLS number and state licenses. Check their licenses on the NMLS consumer access website.