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Updated over 5 years ago on . Most recent reply

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43
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Joe T.
  • Chicago IL
11
Votes |
43
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Local lender for Out of state investing? Or does it not matter?

Joe T.
  • Chicago IL
Posted

Hey guys - I'm hearing conflicting advice on what lenders to go with for investing out of state.

Is it better to go with a lender who is local to the area of purchase? Or does it not matter, it really comes down to the numbers being offered?

Would love to get folk's thoughts on this.

thanks!

Most Popular Reply

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Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Lender
  • Fort Worth, TX
6,321
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7,936
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Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Lender
  • Fort Worth, TX
Replied

@Joe T. I always feel that using local is better.  It is true that you might find a good, non-local lender....but your odds are better if you use local.  It took me a while to find a good out-of-state lender.  I do have one....but I've got 6 good lenders that are here locally.  You just have better chances working local.  I would post in the Illinois forum (if that's the area you are buying in) to see what other locals are using and I do have some suggestions on what to ask your lenders when you are interviewing them:

Questions for Lenders

  1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
  2. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
  3. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
  4. Can I change title to my LLC?
  5. Do you sell your mortgages?
  6. What is your loan minimum?
  7. Can you explain to me what your reserve requirements are?
  • Andrew Postell
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