STRATEGY
FINANCING
RUN A FINANCE CHECK Before you even start shopping for a lender, you need to run a final check on your finances and fix them if required. This means you should pull your credit report from any of the credit reporting bureaus. If your credit score meets the required standard, then you are good to go! Otherwise, check for errors and fix them as soon as possi- ble. If you fall into the latter category, below are some things you can do to increase your credit score as soon as possible: • Pay off your debt and keep credit card balance low. • Don’t open unnec- essary credit cards and if you have any unused credit card, don’t close them. • Manage your credit card responsibly and check your credit report often to know when you are off track. • Pay your bills on time.
the different loan options available. You can either visit a third-party mortgage advisor or read on your own. Either way, you should learn about different institutions avail- able, their purpose of existence, and the types of loan they offer. Also, check the terms attached to each type of loan and the rates they offer. VISIT THE APPROPRIATE PERSONNEL Visiting an industry expert—a mortgage advisor—in the bank you choose can save you a lot of stress and guide you on your decision. Discuss rates, terms, type of mort- gages, services offered, processes, and other questions you have con- cerning the lending process. Apart from saving you the stress, you should be enlightened and know more about the industry (which can be of use later). Your financial institution’s mortgage advisor should be welcoming and ready to help you secure the loan. COMPARE LENDERS, RATES AND OTHER FEES Now that you’ve done your re- search and know what you need, and what you can get, it’s time to shop around for the best mortgage lender. You may ask friends, family, neighbors and even independent mortgage advisors for recommen- dations. Doing this will not only help you fish out bad options, but it could also help reduce your ex- penses throughout the closing and the course of the loan. However, never settle for a lend- er because a close friend recom- mended them, or you feel they are the best. Get multiple offers and choose the most preferred ones.
Compare their rates, closing costs, origination fees, and other ex- penses. Conversely, getting offers from different lenders could give you negotiating power and greater understanding about the industry.
ASK QUESTIONS AND READ THE FINE PRINT
You’ve now received recommen- dations and offers from different lenders; now it’s time to make the final decision. Narrow your choice to the best lenders, but never stop there. In making your final selec- tion, you need to ask questions. Interact with the lending institution you chose.
• What are the fees associated with the loans?
• What are the requirements to qualify for a loan?
• How do I qualify for preapproval letter?
• How do you communicate with your clients?
Remember, a low offer does not make a lender the best. So, read between lines, ask questions, and follow your gut. •
Before You Buy HOW TO PICK THE BEST BANK FOR YOUR MORTGAGE.
Maylis de Lacoste manages all investor relations and media/communication at Lafayette Lending, which offers fix- and-flip funding solutions nationwide
for single family, multi and new construction properties. Founded in 2016, Lafayette Lending has an experienced teamwith more than 10 years of industry knowledge. They offer the most competi- tive interest rates and origination points, as well as exceptional communication and fast closings. Led by Thibault Adrien, the team has been recognized for excellence in lending by organizations such as Inc. 5000, American Association of Private Lend- ers, and Forbes Real Estate Council.
LEARN THE MORTGAGE LANDSCAPE The financial industry is a very complex field and can be difficult for nonprofessionals to understand the terms. So, after running checks on your credit history, learn more about the mortgage landscape and
by Maylis de Lacoste
A
fter finding your next preferred project, you need to secure
so. You are in it for the long term — you will have to pay a mortgage for the next 15, 20 or 30 years. So, be careful because your choice today
could determine what will happen in the future. Here are five easy steps you can follow to pick the best finan- cial institution for your investment:
financing. Financing is just as import- ant as buying a property, if not more
24 | think realty housing news report :: december 2019
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