Mortgage brokers: the do behind the dream
I was having lunch with a friend the other day (eating some delicious bow-tie pasta) when he asked me, “Do you consider yourself a dreamer or doer?” Interesting question, right? I responded with some sort of non-committal answer, the kind that avoids having to choose between two options.
“Well, I’m a doer who likes to dream.” After all, who wants to be considered a boring doer, someone who’s not exciting enough to dream? And, what merit is there in simply dreaming up plans but never taking the initiative to act? My friend was just making interesting conversation, but his question got me thinking. And the more I thought about it, the more pleased I was with my answer.
Any successful real estate investor is indeed a doer who likes to dream, because every decision made or property invested, started as a dream. A major bridge from do to dream in such endeavors is the mortgage broker–the funds provider. Few people have the necessary means to invest in property without borrowing the funds to make it happen. And even people that do have that kind of money often opt for some sort of financing plan.
Financing is one of the most crucial and misunderstood parts of real estate investing. People go to all sorts of work finding the right property for their investment (researching market trends, renter needs in the area, etc.), but they do not apply the same diligent research when finding the right mortgage company and broker.
So, here’s a nudge in the right direction.
When considering financing options, always remember that different loan programs are better for different investor needs. There are quite a variety of loans out there and a competent loan officer should be able to match your needs to the right loan. Competent, of course, being the key word in that little sentence. If your loan officer is below par it doesn’t matter how great the company or loan programs, because part of the process is being matched with the appropriate loan.
And I recommend working with at least two capable loan officers from two different companies. Be upfront with both officers by letting them know you are working with multiple firms. This dose of competition will help you secure the best rates. Also, make sure your mortgage company is licensed in multiple states and has experience and expertise in investor financing.
When you find the right mortgage broker you’ll experience the momentum that comes with moving from dream to do.