How do you get pre-approved for a new mortgage so you can purchase a new home or investment property? Or refinance your existing property?
Being organized and having your personal finances in order is a great start. It will give you the best chance of getting qualified for a new mortgage.
In this guide, we’ll review the steps required for getting qualified for a pre-approval. We’ll also cover what to expect during the application and approval process. And why you want to work with a mortgage broker.
Do the following before you start applying to any lenders for a loan.
Six Steps To Help You Get Qualified
The order of these steps is not important, just make sure you understand each one and complete it.
1) Current Income & Assets – Get a hold of all your financial records for the current year. The lender will most likely want to see copies of these documents. Gather up your pay stubs, 1099’s, previous year W-2’s, bank statements, investment statements, and any other sources that show a proof of income and the assets you own.
2) Business Income (if applicable) – Be ready to show your tax returns … READ MORE
If you are lucky enough to have a large sum of cash set aside to buy your next real estate property outright, then congratulations! But for the rest of us, we’ll need to finance our next home purchase with a mortgage or some other type of creative financing.
Then be able to pay it all back over a 1, 5, 10 or a 30 year period.
Shopping around and applying for financing that has good terms can be a real pain. Below we’re going to review the top 3 financing options that exist for residential real estate (i.e., condo, townhome, house, 2-4 unit multiplex.)
If you have not already, review my other guide regarding: How To Get Qualified and Approved For A New Mortgage Home Loan
Most of the below options can you assist you in
Downfall of Putting Less Than 20% Down
Any down payment that is lower than 20% will require Private Mortgage Insurance (PMI), which means you’ll have a higher monthly payment. Here’s more information on what exactly PMI is: What Is Private Mortgage Insurance?
There might be a way to use a second mortgage to finance part of the down payment eliminating … READ MORE
In this guide, I give you all the details of how to buy a house (or multi-unit building) and make a new home in a very competitive real estate market.
I once had the dreaded “Should I buy a home?” question. Then, someone, I knew said to me, “Hell yeah you should!”. And after almost 18 years, its the best decision I ever made. I’ll explain more as you keep reading below.
I’ve been living in the Bay Area and have owned five properties over the last 17 years. I have never rented anything my entire life.
Back in late 1999, I had landed my first IT Support job working in San Francisco. Then shortly after the 2000 New Year, I bought my first town-home when I was 21 years old. It was time to get out of my parents house.
Before you proceed further let’s get one thing straight. This guide is not about amassing a massive portfolio of real estate; it’s really about accumulating just one property, so you have a base of security. Then after some time, you could consider taking on another property if you have the financials to do so.
Over time, the … READ MORE