Dallas-Fort Worth Real Estate Investor Club

If your strategy is to "buy and hold" (essentially rental properties) then chances are you will need some type of permanent financing.  I have put together 7 questions you should be asking your lender when you interview them.  I would encourage you that if your lender cannot answer these then we should be seeking lending elsewhere.  Again, this is more for the permanent financing types of loans.  

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
3. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender, 20% can still work though)
4. Can I change title to my LLC?
5. Do you sell your mortgages?
6. What is your loan minimum?
7. Can you explain to me what your reserve requirements are?

Hiron Fernando wrote:

One question, is this for fixed rate and term loans or ARM products? 

  Neil Aggarwal
  Property Financing, LLC