First investment property - what interest rates to expect

[Pramod Prasad]

Team,

Just getting started with real estate investing and getting my first property under contract. I did a pre-qualification with a lender who provided me a rate once the property was finalized. 

The property value is $160,000 (in Kansas City). I am doing 25% down and the lender is offering a 7.625% (no points) interest for the loan amount. I find this to be higher than what I see in the market - I intend to shop around for other rates. For additional context, I have excellent credit score (770+), zero debt, savings/assets >$500,000, and have been in my same company for 4+ years.

Question for the forum:

1. Any advice on what interest rates to expect? I need to know if this lender is taking me for a ride! 

2. Any recommendations for lenders? I am not local to KC, so my other option is to look at one of the larger banks (Chase, Bank of America) or a national mortgage lender like Rocket, etc. Any thoughts on this please?

[Virginia Franzese]

"New listings have significantly decreased and the increase in inventory is coming..." This is just not true. We are still sitting at less than 1.5 months supply of inventory, we are still seeing multiple offers on homes (particularly homes under $350,000), and demographic-driven demand will continue to outpace supply for the foreseeable future. Can your cash earn you more in other places right now? Sure. But if you're interested in getting into the Kansas City market, I'd do it sooner than later.