Need advice for financing purchase

[Steve Maye]

Hello,

Recently I posted a topic about purchasing my next rental property.  I had considered paying it off in full rather than any financing, but I received a lot of advice showing that having some debt was a good thing. I will follow that advice, but I could use some help sourcing and evaluating financing options.

I am looking at new and almost new homes.  I will put up to 50% down payment.  One of the builders offers to pay $1500 toward my closing costs.  They have a preferred lender that I will ask for a Good Faith Estimate for closing costs. 

From what I read on the internet it seems closing costs for both the loan and the home purchase can be extensive.  Can someone give me some guidance on minimizing my expenses?

[Amy Bonis]

Hi.  I am a lender.  Here is what I recommend. Find a lender that you like, that you can communicate with and form a bond with them. The lending business is very difficult, more than consumers actually can imagine.  Shop the loan as Steve and Mark suggest above but then go back to the lender that you have a good feeling on and share these quotes with them and if they can match or beat these quotes, use THAT person.  Forming a relationship matters.  A loan officer's bond and relationship with their underwriting and processing is important to getting things done throughout the process. And the above posts are also correct that smaller loans will get you much less response.  If you put down 30%, you already qualify for the best rate on rental properties. 50% down will not gain you more in terms of a better rate and if the loan is small, it will get you less.  Good luck!