The following are some questions you may consider when talking to potential Mortgage Brokers, Hard Money Lenders, Private Lenders or other Lenders in general.

Just like my Real Estate Agent Interview Questions, it is important to realize two things about the questions below:

  • First, they are NOT intended to be asked verbatim or read aloud to your potential Lender.
  • Second, they were NOT designed to all be asked and definitely not all at one sitting. You’re not grilling the lender or interrogating them… you’re trying to see if there is a good fit to work with them.

Here are some questions to consider rewording into your own words to use in your interview.

  • Financing
    • Financing For Me As A Real Estate Investor
      • What type of expertise do you offer with putting the financing together for buying the property?
      • Do you know specifically about financing programs for Real Estate Investors?
      • What are the current rates for investor loans?
      • How many loans can a Real Estate Investor get in their own name?
      • What type of documentation will I need to process the loan?
      • What kind of down payment will I need to buy a rental property?
      • If I buy a property using a hard money loan, can I do a rate and term refinance on the property to minimize money parked in the property as a down payment? How will that affect my interest rate?
      • If I bought a property all cash, how long must I wait until I can do a cash out refinance to re-use that cash to buy a new property for cash?
    • Financing For My Tenant Buyers or Retail Buyers
      • Do you know specifically about financing programs for my retail buyers? How about my Tenant Buyers?
      • Do you have programs to help my Tenant Buyers get qualified to get a loan to buy the properties from me?
      • What kind of down payment would my Tenant Buyers need typically to close a new loan with you and cash me out of a property?
      • Does me offering to carry back a small second help? In what way? Lower credit score needed? Less down payment of their own needed?
      • What kind of credit score does a Tenant Buyer need to close a new loan with you?
      • Do you know about loan programs for First Time Home Buyers?
      • Do you know about loan programs that have down payment assistance?
      • What are the current rates for owner occupant loans?
      • What type of documentation will my buyer need to process the loan?
      • How much are most lender requiring as a down payment? Are there programs that require less? How much less? What is the minimum? Are there down payment assistance programs?
    • Financing For My Joint Venture Partners
      • IMPORTANT NOTE: Partner and/or partnering in these questions is used in the most generic sense and is not intended to mean a partnership per se. You may partner with someone and ultimately end up forming an LLC.
      • If I am going to be partnering with others that will be providing the down payment and getting the loan on the property, how would that work?
      • Do I need to be on title? Can I be on title? Can I be on title as my trust, LLC, or corporation?
      • Can my partner use retirement funds (like a self directed IRA) for the down payment? How much of a down payment will they need?
      • Can my partner get a loan in the name of an LLC or other entity? Can they buy as an individual and get the loan as an individual and then transfer ownership after closing into an LLC or other entity?
      • Will there be any challenges with the loan if we intend to immediately offer the property to a Tenant Buyer on a Rent To Own? Lease Option? Lease Purchase? Installment Land Contract?
  • Fees
    • How do I pay you for your service? Is it a fee on loans that are closed? What is the fee?
    • Is there an up front fee?
    • What happens if I end up not doing a loan with you?
    • Is there a minimum fee percentage? If so, what is it?
    • Is there a minimum fee dollar amount? If so, what is it?
  • Team
    • Do you any assistants or staff that works with you that I will be interacting with?
    • What would I be dealing with you directly on and what would I be dealing with them on?
  • References
    • What percentage of your business is from new clients? What percentage is from repeat business from existing clients? What percentage of your business is referred business from existing clients?
    • Do you have a few (that means THREE) existing clients that you worked with in the last 6 months (that does not mean friends from high school… you want recent people) that I can call as references? You probably want to get investor references when possible.
    • I realize that people don’t always agree. If I stumbled upon your most troublesome client, what would be their biggest complaint about your service? WARNING: If they say they’ve never had a problem, they have not had enough clients as problems naturally come up in business.
    • Have you worked with any Real Estate Investors that have invested like I am doing? Can I call them about your service?

Return to Mortgage Broker.

See also…

Other Interview Questions