Posted by Desiree on October 09, 2003 at 04:35:23:
That is a Fannie Mae rule. You have non conforming lenders, rates are a tad higher, who will finance additianl properites for you.
You need to find a good broker to work for you vs. your local banker for your additonal purchases. A broker can represent up to 60, 70 or 100’s of lenders with different products and guidlines. Me I’d interview a few brokers before picking one because 1) you want your loans closed and 2) you need a person who has knowledge and skills to find you the best deal for your long and short term goals.
IF you know of other investors ask them if they deal with a broker, if you don’t know any brokers get the phonebook out and start calling around. You don’t want a novice but you don’t want a know it all either. Get them talking about the mortgage business, what’s the differnece between Freddie Mac & Fannie Mae? How many loans will a non conforming lender allow you to close with them? What is yield spread premium? What lenders do you general take your investors to and why? What lenders do you deal with constanlty? What is your average loan closings per month? Do you do commercaial deals? Do you deal with local bankers? (I’m a loan officer myself and we deal a lot with 2 or 3 banks in town because of the relationship my boss has built with them over the years and they the bank loan officer bends over backwards for our business as they get bounes based on loans so it’s about relationships) Do you deal with investors? How many times a year do you go to the mortgage brokers conferences? (personally I feel if you don’t go to the conferences how can you keep up with the latest news, new lenders, and your professon?)
And I’m sure you can come up with questions of your own.