Your Funding Problem… Solved
If you need funding for your real estate purchase or refinance investment, we have you covered.
Here are our best tips for getting your real estate loan.
1. Work on your credit score.
The average American has a FICO® Score of about 700. Scores range from 300 to 850, and higher scores are better.
Whether you’re applying for a conventional mortgage for your investment property or a commercial asset-based loan, you can be sure that your credit score will come into play. Lenders generally check your FICO credit score from all three major credit bureaus and use your middle score to determine your eligibility, your down payment requirement, and your interest rate.
A FICO® Score of 740 or higher will generally qualify you for a lender’s best terms, so working on your credit score can be a smart move.
2. Get your income and employment documentation in order.
We suggest before you begin shopping for a loan, it’s a good idea to gather all of your income documentation.
These documents include:
your last couple of tax returns, W-2s, and 1099s, and a few recent pay stubs won’t hurt. It’s also worth having a contact number for someone (like your employer’s HR department) who can verify how long you’ve been at your job.
3. Pay down some other debts.
Debt reduction can boost your qualifications for any type of loan.
For conventional loans, debt reduction will improve your debt-to-income (DTI) ratio. Even if you’re already within your lender’s limit, a lower DTI can help you get better loan terms.
We do know that the amounts you owe on your various credit accounts make up 30% of your FICO® Score, and so a substantial debt reduction could have a significant impact.
4. We will apply with as many lenders as needed to acquire the best rate.
Perhaps the most common mistake I see investors make when trying to finance a property is to apply for just one mortgage and accept whatever terms they’re given.
So, now the next step in solving your funding problem is to give us a call. Seward Real Estate & Financial, Inc. solves your funding problems.