Looking to invest in Atlanta real estate but not sure how to find and choose the right lenders? With multiple financing options now available, it’s vital to understand criteria like interest rates, fees, eligibility and risks when selecting lenders for your investment property purchase or refinance in Atlanta. This article provides key guidance on evaluating and selecting the best mortgage lenders, private money lenders, hard money lenders and other specialty loan providers to partner with for your Atlanta investment ventures.
Compare interest rates and fees to maximize returns
When investing in Atlanta real estate, interest rates and fees can significantly impact your bottom line returns. It’s important to shop and compare rates from multiple lender sources. Average 30-year fixed mortgage rates are around 6% currently, but may be higher or lower depending on the lender. Also look out for origination fees, application fees, points and other closing costs which can add up.
Evaluate eligibility criteria before applying for financing
Investor loans often have more flexible eligibility standards related to credit score, income documentation and other historical requirements. However, it still pays to have a clear sense of eligibility criteria in advance when selecting an Atlanta investment property lender, so you don’t waste time with options unlikely to approve your loan request.
Understand risks of different loan types for Atlanta properties
Mortgages, private funding and hard money loans can all carry varying risks for real estate investors. Mortgages require 20%+ down payments in most cases and are longer term, fixed rate products. Private or hard money loans may demand 25-70% down with higher rates and shorter 1-3 year durations before refinancing is necesary. Know the risks before committing to any lending arrangement.
Look for red flags with predatory or dishonest lenders
Unfortunately, predatory lending and dishonest loan practices do exist. Be wary of lenders asking for large upfront fees before providing funding, pushing you to accept unfavorable terms & rates, or pressuring quick closings without due diligence. Legitimate Atlanta lenders invest time to understand your goals and constraints to suggest financing suited to your needs.
Evaluating and selecting the right real estate investment lenders in Atlanta requires comparing interest rates and costs, analyzing eligibility criteria, weighing risks of different products and watching for any red flags with predatory behaviours. Taking these key factors into account will lead to finding an excellent financing partner for your property goals.