409: Fundamentals of Funding: How to Get Approved for a Mortgage (Step-by-Step) w/Jeff Welgan

Real Estate Rookie

BiggerPockets

Business, Education, How To, Entrepreneurship, Investing

4.7 • 1.8K Ratings

🗓️ 22 May 2024

⏱️ 58 minutes

🔗️ Recording | iTunes | RSS

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Summary

Knowing how to get a mortgage is a crucial step in your journey to buy a rental property. Of course, the money side of things can be intimidating. How do you find a lender? What type of mortgage do you need? When should you get a preapproval? You likely have all sorts of questions…and we have answers! Welcome back to the Real Estate Rookie podcast! In part two of our fundamentals of funding miniseries, certified mortgage advisor Jeff Welgan joins the show to share his lending expertise and equip rookies with some golden financing tips. In this episode, he debunks some of the most common misconceptions about real estate lending and shares some of the biggest red flags to watch out for in a lender. But that’s not all. Jeff will show you an EASY way to build an entire portfolio with very little money—a lesser-known strategy that allows you to use down payment assistance programs and first-time home buyer loans to your advantage. Jeff also talks about the biggest differences between conventional and non-conventional loans, what to expect during the underwriting process, and where he expects mortgage rates to be in the not-so-distant future! In This Episode We Cover: The EASY way to build your rental portfolio with low money The mortgage approval timeline and what to expect during the underwriting process How to get 100% financing (or more!) with down payment assistance programs The biggest red flags to watch for in a lender (and key questions to ask!) How to get a first-time home buyer loan (even if it’s NOT your first property!) The most common misconceptions surrounding real estate lending Conventional loans versus non-conventional loans (and which one YOU need) And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Get Tips, Advice, & Support in the BiggerPockets Forums Join the Real Estate Rookie Bootcamp Grab the BiggerPockets Investing Books Property Manager Finder Real Estate Rookie 408 – Fundamentals of Funding: How to Find the Right Lender for Your Next Rental w/Joe Coleman BiggerPockets Real Estate 939 – BiggerNews: 100% Financing for First-Time Home Buyers is HERE BiggerPockets Real Estate 943 – BiggerNews: Can’t Qualify for Another Mortgage? Try THESE Investor Loans w/Jeff Welgan Connect with Jeff: Jeff's BiggerPockets Profile (00:00) Intro (01:09) Funding Challenges & Lender Red Flags (07:00)) Common Financing Misconceptions (12:10) Kicking Off the Lending Process (17:26) Getting a Loan with an LLC (22:50) The Lending Timeline & Credit Pulls (28:48) Mortgage Underwriting 101 (35:23) Conventional vs. Non-Conventional Loans (41:30) Where Are Mortgage Rates Headed? (46:54) Connect with Jeff! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-409 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: advertise@biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode number 49er.
0:05.8	Today we are on a part two of our three part mini series
0:09.3	to help you understand the fundamentals of funding. I'm Ashley Kerr and I'm here with Tony J Robinson.
0:16.2	And welcome to the Real Estate Rookie Podcast where every week, three times a week,
0:20.3	we bring you the inspiration, motivation, and stories you need to hear to
0:24.1	kick start your investing journey.
0:25.7	Now as a quick recap on episode 408, we covered the different types of lending and
0:30.8	how each real estate deal may require a different type of lending. of into action. So we're going to get into the specifics of implementing
0:43.9	conventional funding and then we're going to cover the timeline A to Z so you
0:47.9	know exactly what to expect as a real estate rookie investor and most
0:51.8	importantly we're going to cover some of the red flags
0:54.4	you should be looking out for. Super excited to welcome today's guest Jeff Logan who I've worked
0:59.2	with personally on quite a few deals in my portfolio and he's helped a lot of folks
1:02.2	that I know as well so So Jeff, welcome to the
1:04.6	real estate rookie podcast. Super excited to have you here, brother.
1:07.1	Yeah, thank you for having me on guys. Looking forward to this. Jeff, first I want to know what are some
1:11.6	wild stories you have here. I mean obviously you have Tony as a client
1:16.7	so I'm sure there's a lot to unpack there but you know in today's market do you have anything that's crazy that's going on
1:24.1	lending story wise? Yeah, you know back then in 08 leading up to that period I mean look it was a
1:29.2	wild time. I mean my industry was literally the Wild West. I mean, we were refinancing the same clients every few months. They were coming to us with, you know, their credit cards that needed to be paid off, and then they were calling us 60 days later to pay off the same credit cards and so there's been a lot of
1:44.4	checks and balances put in place now to where we're not repeating those same
1:48.0	cycles. I mean we were doing 125% financing back there back then you know we can do a hundred
	...

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