Checking multiple lenders at once (cr. score hits, sequence, etc)

[Josh Smalley]

I'm in the middle of pulling out equity from one investment property (HELOC or 2nd mortgage, whichever gives me the best rates and LTV) and then using that money to put a downpayment on a second property, thereby needing another lender on the purchase side.

I've never done this.

How do I go about doing this with the least hit to my credit score (still a newbie to where my credit score will help me right now secure traditional financing)? Also, how should I time everything? If it's a 2nd mortgage that I get against my investment property, then I want to make a move on a new investment property purchase immediately.

Thoughts from the experts on this?

[Josh Smalley]

Originally posted by @Shaun Weekes:

Originally posted by @Josh Smalley:

Originally posted by @Shaun Weekes:

Originally posted by @Josh Smalley:

Originally posted by @Shaun Weekes:

Originally posted by @Josh Smalley:

@Shaun Weekes

Thanks.

I would have loved to have done it all with one lender, but my properties (the one with equity and the one I'll purchase) are in different states so it makes it difficult.

There's a will, though, so there's got to be a way.

 You should be fine just make sure the numbers work with your Loan Officer or Broker.

What do you mean by numbers work? I know that I need to make sure that the property I will purchase has cash flow that can cover the primary mortgage and this 2nd mortgage/HELOC that I'll be taking out of a different investment property. Quite a tall order, but I think it is doable. I can also pay off the 2nd mortgage with my own income within three months if I wanted to.

But what did you mean by numbers working for the broker/lender? I'm not clear on what you mean.

I was talking about your DTI specifically. Make sure you can qualify for the 2nd property. Because you're wanting to use 2 different Loan Officers. If you were using one, he/she would be able to let you know what you qualify for on the 2nd deal.

You'll be fine. Just make sure the numbers work.

Ah yes. Right, I've already been discussing this with a couple of lenders in the market where I will be purchasing a property. Thanks for the tip.

Another thing I've wondered about is how to do appraisals when I courting lending offers from multiple lenders on my current property. How do I avoid annoying the tenant? Will multiple lenders agree to use one particular appraiser (unlikely, right?)? So, how does the logistics of this all work out. Newbie, can't you tell?

 When you're done shopping around you need to have that one lender order the appraisal. You're not going to order multiple appraisals for numerous reasons. The most important is that it's going to cost you money each time.

Also, I would strongly recommend that you choose a lender based more on service & knowledge over price. I know $30 bucks in savings is $30 bucks but if the more seasoned and experienced lender isn't making you run through hoops and delaying closing it's worth it. You get what you pay for!

You seem like you've done your homework. I would just recommend developing a strong business relationship so that you can use the same L.O. or Broker over and over again. 

 Thanks so much. Your comments are confirming things I've read or discussed with others already.

I'll be working the phones (from Ethiopia where I live and work) the next two weeks to see if I can find one, single lender who could help me on both ends of the deal--pulling equity out of one property and then providing a commercial or conventional loan on the other end, and in two different states no less.

Have a great week.