Selecting a Lender for Real Estate Investors

Are you a real estate investor looking for a lender to help finance your properties? While it’s easy to get caught up in interest rates and costs, there are non-financial factors to consider when selecting a lender that can greatly impact your success as an investor.

Find a Lender Who is a Good Fit for Your Team

First and foremost, it’s important to find a lender who is a good fit for your team. This means finding someone who understands your goals and is willing to work with you to plan out your investments. They should be able to assist you in understanding debt-to-income ratios and how each property will affect your financial goals. A good lender should also be transparent about the loan process, including any additional criteria or restrictions, known as loan overlays.

Understand Loan Overlays

Understanding loan overlays is another important factor when selecting a lender. These are additional criteria that lenders place on their loan products. For example, a lender may require a higher credit score than the baseline criteria set by FHA. Knowing where certain lenders have applied overlays and what they are can help you make an informed decision.

Consider Personality and Communication

Personality and communication are also crucial factors to consider. You want to work with someone who is respectful, approachable, and willing to communicate with you effectively. If a lender makes you feel uncomfortable or doesn’t respond to your inquiries promptly, it may be best to choose someone else.

Look for Accessibility and Availability

Accessibility and availability are also key considerations. You want a lender who is willing to be available when you need them, especially during the offer process. If you can’t get ahold of your lender when you need them, it could potentially jeopardize your offer.

Find Lenders Who Go Above and Beyond

Finally, look for lenders who go above and beyond. Some lenders may be willing to eat the cost of extra appraisals or work with you to structure a loan that fits your needs. While these lenders may not always be the cheapest option, they can be valuable members of your team.


In conclusion, it’s important to consider both financial and non-financial factors when selecting a lender. Finding a lender who understands your goals, is transparent about overlays, has a good personality and communication, is accessible, and goes above and beyond can help you succeed as a real estate investor. Taking the time to research and select the right lender can ultimately make a significant difference in your investment success.

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