I am in the process of closing on a house using conventional loan, but my loan officer adviced me not to send out any more contracts till this deal is finished because the lender would see I am actively purchasing other properties and may affect the state of my loan.
I was hoping I can buy another property in the mean time. I was avoiding doing HML since I can qualify for more conventional loans and I plan on holding these properties.
I also want to get HML process going rather than waiting till I find a property, would that affect my current loan process? I don’t see how but my loan officer told me to hold off on that as well.
The loan officer is correct about signing a contract and taking on the process of a new conventional loan.
They would be required to pass along the proposed figures which could affect the debt to income ratio, assets needed, or acquisition pace.
If you were entering into a hard money loan using a business/LLC, this would not need to be factored in. Most hmls will allow a business name to be used since it’s considered a commercial loan.
Why not go to the same lender with the other contracts?
You don’t need an S corp to get this done.
I’ve sent four sales contracts in at the same time on a buyer with stated income and closed all four at the same time… Why would you have to wait to do one at a time?
The deal that you currently have in processing may be affected by additional purchases but future loans could be structured so this was not an issue. There are plenty of lenders that have no limitations.
I was puzzled by it as well. That was what my current mortgage broker told me. I have talked to couple other mortgage brokers who said they did not understand his reason. i am back looking for properties and will finance them through another broker.