All Forum Posts by: Luke Schrotberger

Hi Karl.

I'm a mortgage broker and here are a couple thoughts.

1. Credit reporting rules have been set up to encourage you to shop around, so your credit score won't be impacted multiple times when your credit is pulled multiple times in the same time window. Additionally, with good credit scores the impact from pulling credit is not significant.

2. Finding a good mortgage broker would be an advantage for you.  We have multiple lending relationships and can direct different loans for different situations to a lending partner that would be a good fit for the situation. In your case, directing your loan to a company that encourages more common sense underwriting and understands the logic of adding one time deductions back into the revenue would make sense. Banks are notorious for having their box. If you don't fit in, then you don't get a loan. With a broker, if one lending partner denies the loan, he can find another option with no additional work (or credit reports) on your part.

3. I'm investing in rental properties in Tennessee and have spoken with a local bank for what amounts to a commercial Line of Credit (LOC) with my free and clear properties used as collateral. I haven't used this option yet, but in general terms the bank said they would give 80% of the appraised value for the LOC with a variable rate tied to prime, which is in the 5.5% range right now. Might be an another route to pursue.

Let me know if I can help with any further info.

Luke Schrotberger