Tuesday, 19 November 2019 23:39

How to Find the Best Blanket Mortgage Lender

Find the Best Blanket MortgYou weighed the pros and cons of blanket loans carefully. It’s the right option for you, but you’re not sure who you can trust in the industry. Who can blame you?

Traditional mortgage lenders aren’t equipped to handle some of the more creative and advanced investment strategies. Your loan servicer is an expert in first-lien mortgages for single-family dwellings. The vast majority of loans she’s closing are government-backed FHA and VA loans.

Outliers she deals with are 2nd mortgages, reverse mortgages, and home equity lines of credit (HELOC). That’s about the extent of your current loan servicer’s knowledge, and beyond that, you’re stuck dealing with a commercial real estate agent. 

 

That’s a very limited view of how real estate actually works. Look around you - there are rental communities of all shapes and sizes. There are also lenders of all shapes and sizes, and this guide is meant to walk you through how to prepare and find the best blanket mortgage lender.

Understand Your Finances, Income, and Credit Score

No matter what type of loan you get or lender you work with, you should always have a good grasp on your current financial situation. This means you need to know your exact income and expenses (along with the ratio between them), assets, and credit score.

These are the factors lenders will look at, but not every lender looks at them all the same way. A bank like Bank of America has to use credit scores to judge new borrowers. The company owns Countrywide Home Loans, which contributed to the financial crisis. Banks that were around back then are still buried in litigation.

New financial services popped up since then. We’re one of them, and the reason we’re able to offer rock-bottom pricing is because we’re not weighed down with the record fines burning traditional lenders. We extend that courtesy and those savings to our borrowers.

Your credit score doesn’t matter here. What matters is verifiable income. If you’re generating revenue, you’re already succeeding at one of the hardest parts for any business. Leverage that momentum. 

Analyze Interest Rates and Your Local Market

Don’t get caught up in all the media and marketing when investing in property. The best time to start is always right now. If you continue waiting for a better time, you’ll never get on board. The reality is that you’re losing money every minute you’re not already invested.

Real estate is one of the biggest contributing factors to the health of the U.S. economy. It’s the greatest source of wealth for most families. Real estate construction alone accounts for anywhere from 5-10% of this country’s gross domestic product.

No matter if the housing market is up or down, there’s never really a bad time to get a loan. If the rates aren’t what you want, refinance down the road when they’re better. As long as you follow the fundamentals and stay involved with your investment property, the market doesn’t matter.

You may lose a little money upfront, but not as much as you’d lose without an investment property. Ignore the media hype or your friend’s advice and do what’s right for you and your money.

The truth is there’s never a bad time to buy real estate. In fact, when housing prices are too high to buy, people rent. So if you own a rental property already, you’ll be who they rent from. Just find a market you like and keep an eye on rates on a continuous basis to maximize profit opportunities.

Perform Your Due Diligence and Research

It’s important to always research everything before giving any money to anyone or signing any contracts. This paperwork is legally binding, so you are stuck with any unfavorable terms. Blanket mortgages amplify these issues, as they’re affecting multiple properties instead of just one. So it’s especially important that you do your due diligence.

Talk to people in your personal and professional network. But don’t always expect full honesty when speaking about investments with someone. They’ll always have a positive outlook based on their personal skin in the game. Scour through online forums, review sites, and social media to find others in the same situation. The more work you do up front, the more your investment property will pay off in the long run.

Pick Up the Phone and Call Someone

Once you have your research, it’s time to call someone. The reality is that because blanket loans are a niche product compared to a traditional home mortgage, there’s a lot less information to be found online. It’s the nature of the beast.

Look at cryptocurrencies - there are over 2000 of those brand new financial products that have been released over the past five years. Most people only ever will know Bitcoin. 

There are so many loan types and different lenders, it’s impossible to really know what a blanket mortgage lender can do for you without talking to someone in person. So whether you pick up the phone or walk in the office, start a conversation with a real person at the potential lender you want to work with. It’s the easiest way to blow past all the confusing marketing speak and get started on real answers.

Just like not all loans are the same, neither are all lenders. Some people need the wide reach of an international corporate bank. Others prefer the personal touch of a small town credit union. We do our best to provide the powerful features and benefits of a big bank with the personalized service of a credit union.

So if you have any questions, check out our FAQ page, our blog, or simply pick up the phone and call us. 

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