The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Two Shoes on November 26, 2014, 01:48:57 PM
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I'm looking to get financed for a second home and or a rental property. I made the poor choice of going with the first place I went to back in '09. This time around I'm looking to actually get the best deal I can.
Where have you had the most luck?
Who would you use again?
Who should I stay away from?
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Money is a fungible product. Shop around and take the best deal you can find from any lender who is actually going to show up with the money at closing.
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Bankrate lets you comparison shop lenders and I know for a fact that some lenders give slightly better rates to customers through Bankrate because I work for one that does. My most recent mortgage was through a company called AIM Loan (not the company I work for) and they have really competitive rates.
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Second home and investment property loans are more complicated than primary residences. A lot of low cost on-line lenders are not set up to do these or can't do them efficiently. If your financial life is complicated, underwriting your file requires extra work that the on-line lenders won't want to do. If you are going to get into investment properties, it can be helpful to develop a relationship with someone locally that understands what you are doing.
For one investment property and a simple underwriting situation, have a look at the rates and terms offered by PenFed credit union on-line. Their loan product should be a good representation of what you can expect.