The Trusted Home Buyer Logo602-456-4440

5 Questions Real Estate Investors Need To Ask When Selecting a Lender in AZ

Martin Boonzaayer

December 4, 2019

Selecting a lender can be a difficult process if you don’t know the right questions to ask. This article features 5 questions to ask when looking for the lender in AZ who is right for you!

While the process might seem arduous, you must remember that you have the upper hand. There are a variety of lending options available, and in theory, these lenders are competing to have you as a customer.

As an investor looking for a lender, your process might be different than someone looking for a traditional mortgage of a home they plan to reside in. Here are a few great questions to help you in your search.

What are Your Terms, and Are There Additional Fees?

Selecting a Lender - Know Your Interest Rates

You will obviously want to know the interest rate, the LTV (Loan to Value) and the number of points you will be paying. In addition, you should always ask if there will be additional fees. These can be legal fees, underwriting fees, administrative fees, etc.

These fees can greatly impact your profits if they are not accounted for from the beginning. Make sure you are of any prepayment penalties you might be charged as well.

Do You Have Property Criteria That Must Be Met?

Geographic boundaries, as well as limitations on the type of property you are able to purchase, might be put in place by the lender. Make sure you fully understand what types of properties the lender will allow you to buy.

If you are looking for a two bedroom, fix and flip, but the lender requires 3 bedrooms and a price point of 250k+, you might be out of luck.

Do You Provide Funds For Rehab?

In many cases, a real estate investor will need to make some repairs. Will you have to pay for this out of pocket? Or will your lender provide funds for rehab and upgrades?

This is important to know when you are looking at potential properties for investment. While the ability to borrow more money to fix up the home might seem appealing, make sure the value is there as you will be paying additional interest on these funds.

Does Your Company Flip The Loans After They Are Originated?

Many companies will sell the loan to a 3rd party after the loan has been originated. This means that there is a possibility that you will be working with a yet to be determined 3rd party. If they flip the loans, you will be making payments and working with a different company once your loan has been processed.

What is Your Experience With Loans Like This?

Someone who is familiar with what you are doing and who see’s what a good deal you are making, is more likely to provide you with better terms. They will see the loan as low risk, and be able to help you maximize your profits.

As with any decision in real estate, it important to know all of your options and shop around. Remember to ask questions about ANYTHING you are uncertain about.

Our team can help guide you through the process of choosing a lender who is right for you! To get started, simply fill out this form, or give our office a call to get started! 866-488-9923

Explore more

October 10, 2021
Buy For You

If you would like to buy a house (or have a client who does) and struggle to get your contingent or financed offer accepted, make a cash offer instead!  Once your offer is accepted, The Trusted Home Buyer will buy it for you with our cash, and you can move in immediately. Imagine a stress-free […]

Read More
October 10, 2021
Short-Term Lending

We offer short-term lending options to help property owners bridge temporary financial gaps. There is no restriction on how the funds are to be used. Short-Term Lending Examples: Fix up a property so you can sell for top dollar Get down payment funds for your new home Move-in funds to help Mom (or Dad) transition […]

Read More
October 1, 2021
Work Together

We love working with real estate agents to help support their client's needs with short-term lending options and our new We Buy for You program. These programs will support your clients best interest while also ensuring that you are still able to work with them even if they are struggling to get approved for a […]

Read More
July 30, 2021
How to Sell Your House Webinar With Martin Boonzaayer
Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 61 reviews