Quote from @Devin Peterson:
Quote from @Kevin S.:
Hi everyone. Need some advice from lenders as well as experienced investors. I am getting ready to choose my lender from several I spoke to. Should I choose only one lender to qualify me or more than one? How will my credit be affected if more than one lender do hard credit check? Is it true that multiple lender can do hard check within 45 days without affecting my credit? If so, how many hard checks? Experienced investors, please share how you guys navigate this especially when you buy multiple properties in a year. I am looking to buy my first investment SFR property.
Also, how do I go about it when I have a freeze on my credit? Can I unfreeze it only for few minutes or hour while lender do the check? I haven't applied for any loan/mortgage since I put a freeze on my credit. Don't know how it's done. Thanks in advance.
Kevin,
Definitely only stick with one lender. You will not want more than one person to have to pull your credit. It's okay to spend some time upfront shopping around for ideas but I would definitely recommend that you do not fill an app with more than a few, and DEFINITELY don't let them all pull your credit. Every time a hard inquiry is tracked it will raise more flags and questions for you in the long run. Your score will be affected just slightly, but enough for the end lender to trace back and possibly condition for all of these credit pulls with other institutions. You cannot have a freeze on any accounts when your file is into underwriting. Most DSCR investment lender will want a fill tri bureau credit check so they need access to all of your scores. Finally, if you haven't already found out by now - DSCR loans will be the type of loan program you will want to be preapproved for. There are no income checks, DTI, taxes, or W2s involved. This is the best product for investors that allows for the easiest preapproval and underwriting process. Happy to connect and help answer any more questions. Good luck!
Thank you Devin for your response. I see that you are a broker rather than lender. I raised the question of broker vs lender to my lender : "tell me why should I choose lender and not a broker".
He (of course) told me it's better to go with lender directly because there is no third party to deal with, things go faster, they know what products they have, they have all products suited for all type of investors, they have the ability to tweak underwriting since they are the lenders, less cost to me since only lender fee involved vs broker fees plus lender fees, so on and so forth. Since you are a broker would you dispute that? TIA.
