Build Wealth and Secure Your Future!
As an individual, there has never been a better time to acquire rental property. Return on "cash" deposits is at an all time low. Why not invest your cash in a 20% down payment and secure historically low interest rates while picking up bargain foreclosure properties? We can help you find foreclosure listings by clicking here.
Rental Property Loans
Investment property loans will are loans that are secured to allow individuals like you to purchase investment real estate. An investment property is a property purchased for the purpose of generating a return, either through capital gain or rent from the property. Investors looking for a stable market to build their wealth are often given property investment advice to turn to real estate investments as it is the best and most stable option. If you are interested in acquiring a property to add into your investment property portfolio, read on to learn the four simple steps on how to secure an ideal property loan that is best for you.
Interlinc Mortgage will allow up to 75% of the market rental value to offset the mortgage payment. This makes investment property loans easier to qualify for than primary residences.
Simple Step 1: Find Out What You Can Afford Before Purchasing
Most consumers have a buy-now, pay-later mindset, where they search whatever it is they want to purchase before figuring out what they will be paying for it. This mentality will not only potentially stretch your finances beyond your means but will also lead to an inappropriate investment loan which meant losing a lot of money in the long run. You should start evaluating your current income and financial obligations by calculating the amount of earnings you have available every month after deducting your expenses. The leftover money is what you should limit your monthly investment loan payments to. To determine what your potential property investment loan payments will equal, you should contact an experienced lender to discuss your options. This will give you a solid idea of how much you can expect to spend on a property, and what your monthly obligations will be. Here are the steps to secure your approval.
Investment loans are quite different from primary residential mortgages and it is vitally important to have a knowledgable lender that is capable of working on your behalf. Many lenders limit the number of mortgages one borrower may have to four. Interlinc Mortgage allows up to eight mortgages per borrower.
Simple Step 2: Start Saving Up For Down Payment
The next step is to calculate how much your down payment should be, and start saving up. The industry standard is 20% of the total cost of the property sale price. This down payment is made at the time of the purchase in order to be approved for a property investment loan.
Conventional lending requires the down payment to come directly from the borrowers own savings or from a home equity loan from the borrowers primary residence or other rental property.
Simple Step 3: Apply For Investment Property Loan And Provide Your Financial Information
With the current economic crisis, getting a property investment loan is not as simple though still possible. Mainly because creditors usually demand a good to very good credit record.For approval review purposes, you will need to have your current financial information such as your current income and bank statements for the banker, when applying for an investment loan. This includes a list of your existing assets and the amount remaining on your current mortgage, along with other properties you may own. You may be asked the location where you are thinking about purchasing. Therefore, by getting the investment property home loan first ensures that you will not make a purchase you cannot afford and be at ease with a monthly loan payment which is within your means. Start your loan application now.
Simple Step 4: Secure the Investment Property Loan and Start Searching For Properties
When you have secured the investment property loan Pre-Approval, ask for the approval notice of your final amount sent over as soon as possible. It is then time to start searching for a property within the amount of the investment loan to invest in once you have received the loan approval document. Find out the duration you have to seek and purchase a property with the approved loan before the offer potentially expires as there may be restrictions. Before finalizing the purchase, always contact your mortgage officer when you find the property you want to purchase, as the property loan is only tentative.
Well these are the four simple steps on how to secure an ideal property investment loan that is best for you.
Ask us for a referral to a top Realtor that can help you find the prefect property. A professional Realtor will save you both time and money.
We help you find foreclosure deals nationwide. Save up to 50% on massively discounted homes.