First Time Homebuyer

[Dustin Moon]

I've been reading these amazing books put out by BiggerPockets and my goal is to start house hacking. As of right now my first step has been finding a lender to see how much I can even be approved for. I keep on reading from time and time again that I should visit multiple lenders to see if they are a good fit for what I want to do. So far I have talked to one local lender and started their prequalification process. Here are some questions that I have come up with so far.

1. Am I better off shopping around for local lenders only or should I reach out to big banks as well

2. Should I be getting pre approvals from every lender I come across 

3. What questions should I be asking or what key things am I looking for in a lender

[Marcus Auerbach]

@Dustin Moon start by finding a good agent: it's easy to find one, but hard to find a good one. You want someone who does more than 24 deals a year and also owns rental properties and can give you fist hand advice. A good agent will know most local lenders in town (plus contractors, inspectors, where to get a good lease, how to screen tenants etc) and can tell you which ones are good, because most are just average and some are really bad and screw up closings. Obviously you also want good rates and a loan product that fits your needs (most of our house hackers in Milwaukee use a 5% down conventional portfolio ARM loan with no PMI as opposed to an FHA with PMI for life and which is also not popular with sellers, because of their secondary inspection, especially on 100 year old duplxes..). By the way, you want a good lender AND a good loan officer - who you work with matters! You absolutely want to get your PA before looking at houses and it needs to be rock solid with all your documents reviewed, credit pulled and all income and assets verified. It's good for 4 months and easy to renew. And you want it to be as high as possible! In a competitive market you want to look like a strong buyer, that gives comfort to the seller. When I sit with sellers and present offers, not a single time a seller has said, let's counter back because they have a higher PA. But many times they are concerned about the buyers ability to pull it off. Good luck! House hacking is hands down the single best way you can get started in RE!