First ever investment property!

[Llamier Guzman]

Hello people! Soon I'll be purchasing my first ever investment property (Virginia) (MFH) and I honestly feel like I made a mistake. I'm currently pre-approved but my lender gave me a "mid-level rate" which I believe isn't my actual rate since I haven't chosen a property but me not being as educated on the behalf and thinking it was my actual rate I decided to rate shop a bit. My credit was pulled twice (currently sitting at a 700+ according to Experian) but I don't know if this would affect my score or anything when it come to actually choosing a property and locking in a rate. Did I rate shop to soon? Will this affect anything? what are the cons here. I would like to be educated on behalf of the "lending" procedure if that's okay! 

[Kimberly White]

Hey Llamier, congrats on taking the leap! Every investor, even the experienced ones, has that “Did I mess up?” moment. You might’ve rate-shopped a bit early, but it’s not a deal-breaker. Credit pulls for the same type of loan within a short window (usually 14-45 days) are treated as one inquiry, so your score should be fine. The bigger thing is understanding that pre-approvals give you a ballpark, but your actual rate gets locked only when you have a signed contract. I had a client who kept waiting for a better rate, only to see it jump 0.5% overnight costing him thousands. Instead of stressing over timing it perfectly, focus on making sure the deal still works even if rates shift.

Since you’re buying in Norfolk, check if lenders there offer any investor-friendly incentives. A while back, a friend of mine stumbled onto a Virginia closing cost assistance program that wasn’t widely advertised..ended up saving $5K just by asking the right questions. Also, don’t just accept the first loan offer. Lenders want your business, and you can negotiate terms, credits, and even push for a better rate. Now, are you planning to house-hack and live in one unit, or going full rental? Your strategy could change the best loan options for you.