All Forum Posts by: Peter K.

Keep everything. Every app I take gets a screening cover sheet I have developed which has yes / no options for each of my screening criteria, along with fill in the blank for each question I ask their current / former landlord. That way I can prove every app is treated the same and all supporting documentation is attached.

Do not buy anything without seeing it with your own eyes. In this case, I wouldn't buy without a bid to remediate the mold as we'll. What explanation did this guy give you for not allowing you to see the issue before buying?

Good post  I signed a lease this week after turning down over 20 applicants...  I bet I set 50 showings, had 25 of those show up, and took apps from 20.  All to finally get one good one I'm satisfied with.  I try to get lots of people at the property at once to:

-minimize wasted time on no shows

-generate excitement and get people eager to apply quickly

-stay safe -- I own properties in c/d neighborhoods, and while I don't have reason to be threatened, the more people are there, the safer I am

Patience and persistence will get your properties rented to good tenants and help you grow your wealth.

Thanks for the input everyone!  Great to have people to bounce stuff like this off of.  I denied the application based on more than one factor, but not due to marital status.  The search for a tenant continues!  I think I've turned down almost 20 applications on this house...  

@Dion DePaoli Seems like this hits a nerve for you!  I want to clarify some of what you stated.  The rules prohibit collection of a fee (other than the cost of a credit report) prior to receiving loan documents and indicating an intent to proceed.  This means that a borrower cannot be charged for getting a rate quote or for a pre approval.  It does not mean that there is any prohibition on charging a fee when the borrower requests to move forward with processing and underwriting the loan.  Our documents have a form which states that the borrower has received a copy of the Good Faith Estimate and would like to move forward with the loan.  At this point a fee can be charged as the lender is investing resources and working in earnest to get the deal done.  In my mind, and in the view of the CFPB, this is when the process moves from pre approval to application.

I'm sorry you have a problem with my attitude about my time.  Your comments lead me to believe you have worked with lazy loan officers who throw deals against the wall to see if they stick rather than spending the time to research guidelines and confirm how their underwriter will apply them.  You should have zero patience for this type of person--they are not professionals.  Good loan officers know or are willing to research underwriting guidelines, and have enough experience to recognize a potential issue. A good loan officer will choose to work for a lender that supports them and allows them to do a good job, and this includes ensuring that tricky underwriting scenarios such as self employment income can be reviewed and signed off on by an underwriter before a pre approval proceeds to an application.

My priority is to maximize my paycheck--just like everyone else investing their time learning on BP and working in some aspect of real estate.  My lending business is successful because I watch out for my clients best interest and put an emphasis on the relationship rather than any single transaction.  

As for DTI, Fannie Mae's standard is 45%, though some servicing lenders have overlays which are lower.

@Mike H. is correct about the lender being aware of another loan in process.  His explanation of the credit pulls and letter of explanation are right on.  Also, the title does not reflect another title search, only a lien already in place.

If you are working with a really good loan officer you shouldn't have any doubt about whether the loan will get approved. What is the difference in rate? Were you pre approved with the first lender? A good loan officer can make or break your deal. Will .125% or .25% in rate make or break your investment? As a loan officer I don't mind getting shopped for rate and closing costs, but taking my time to start the loan process and then going elsewhere is really frustrating. Some people view getting a mortgage as a transaction. I believe that if you choose to work with a great loan officer, and both you and the loan officer believe that you are partners, you will have better success both short and long term getting deals done.

Took an application on a SFR from a single person this morning. I tell them I need an application filled out by each adult. Applicant told me it was just her. Facebook shows me she just got married in the last two months. She hasn't lied to me since I didn't ask marital status, but I would be shocked if the husband didn't move in too.

What would BP do?  Ask for the husband to fill out an app?  Deny?  If so, on what grounds?

Hi Zach, I'm a mortgage lender and investor.  Also relatively new to the forums.  Would be happy to connect with you any time.

I definitely prefer to buy in neighborhoods that are predominantly owner occupied.  Owners next door are more likely to call the cops than renters are, are more likely to pick up trash rather than ignore it, etc.  I'm always picking up trash when I'm at my inner city properties, but even my good tenants who have lived there for years will walk by it.  As I've been shopping lately I don't see a difference in price based on what the neighboring houses look like, but it definitely plays into the value I assign to any given house.

A rental surrounded by well kept homes will attract and retain better tenants, therefore having a significant impact on your profitability as a landlord.

That's an interesting way of evaluating applicants @Michele Fischer   Have you just fine tuned it over the years?

@Joyce Tavares you must have nicer rentals!  I don't even bother pulling a credit score.  I'm mostly looking for aliases, undisclosed addresses, recent late payments or defaults, and significant judgments as they could all indicate a tenant who is either trying to hide something or who is not going to be collectible if I do end up with a judgement against them.