Online Pre-Approval-Investment-Property
Online Mortgage Pre-Approval for Investment Properties:
Investing in real estate can be a very profitable method to building wealth as the assets generally appreciate in value, and landlords can capture a stream of monthly income.
To increase the performance of the investment, investors can drive down the cost of the mortgage loan while getting a pre-approval to purchase an investment home at the same time.
This guide will explain the following items relating to online mortgage pre-approvals for investments properties:
- The underwriting requirements to purchase an investment property.
- The down payment requirements for financing an investment property.
- Why it is important to secure the lowest rate and fee pre-approval?
- Where to capture the lowest rate and fee pre-approval and loan closing?
Whether you are seasoned investor or first-time buyer of investment homes, understanding the pre-approval process, underwriting requirements, and frequently asked questions surrounding mortgage pre-approvals will empower you to make informed decisions and set you on the path to success in your real estate investment journey.
No credit pulls, spam calls or emails. Just stupid low rates.
Get Pre-Approved or Try the Mortgage Calculator.
What are the requirements to get pre-approved online to purchase an investment property?
To purchase an investment property, you will need to satisfy the Fannie Mae or Freddie Mac conventional loan program requirements for investment homes. Unlike, FHA, VA, USDA, conventional loan programs provide financing on residential investment homes.
Conventional Loan Approval Guidelines for Investment Properties:
- Down Payment Requirements: 1 Unit 15% down payment, 2-4 units 25% down payment
- Minimum Credit Score: 620
- Eligible Properties: Residential 1 to 4 units, Single Family Residential, Condo, Manufactured
- Maximum Seller Concessions: 2% of Sales Price
- Cash Reserves: 1-6 other properties financed requires 2 months of payments for reserves. 7-10 other properties financed requires 8 months monthly payments for reserves.
- Debt-to-income ratio: Less than 50%
- No foreclosure in last 7 years
- No Bankruptcy Chapter 7 in last 4 years
NOTE: Under conventional underwriting guidelines, applicants may still be approved if they do not meet the minimum guidelines if the applicants can verify additional liquid assets, higher credit scores, and or higher income earnings.
Why you should secure the lowest interest rate possible for your Online Pre-Approval for an Investment Property?
Most applicants generally stay with the mortgage lender they select during the getting pre-approved stage of the home buying process.
Therefore, it is important to take advantage of the opportunity to shop and compare multiple mortgage lenders loan pre-approvals.
A 1% lower interest rate, while matching most all lenders closing cost is equal to approximately 10% of the purchase price on the day of acquisition.
Rates 1% lower than most banks at Equifund Mortgage® | See real pre-approved loan offers.
Get Pre-Approved Online. See Loan Offers in 3 minutes.
Where can I get an online mortgage pre-approval from multiple lenders with just one application?
You can use a digital mortgage market place that allows you to get multiple mortgage pre-approvals with just one application.
This gives you the ability to get pre-approved and identify the lowest rate and fee lender matched to your profile at the same time.
What are the steps to get pre-approved for an investment property?
To get the best pre-approval with lowest rate and fee loan terms, applicants should start with a mortgage prequalification which does not require a hard credit pull inquiry.
You can use an online mortgage marketplace that will generate a pre-qualification and identify the lowest rate and fee loan in the marketplace.
Once you identify the best loan, you can request a full mortgage pre-approval for you investment property and upload income and asset documents for pre-approval.
6 Steps to get pre-approved for investment property:
- Gather your Information: Know your credit score, gross annual income, list of debt payments, cash balance in savings, checking, investment accounts.
- Apply Online: Use our 3 minute online loan pre-qualifier and pre-approval to identify the lowest rate and fee loan for your pre-approval to purchase the property.
- Compare Loan Offers: Identify the lowest annual percentage rate loan listed at the top of the list of loans you are pre-qualified for. Verify the loan option fits you budget and expectations.
- Select your Loan Offer: Select the loan offer and proceed to upload income and asset documents to receive a verified mortgage pre-approval letter.
- Upload your Documents: You will receive an email with required income and asset documents. You will also be provided a list of documents online when you select upload documents.
- Receive your Loan Pre-Approval: You will receive your verified pre-approval letter within the Same-day or less than 24 hours.
Rates 1% lower than most banks at Equifund Mortgage® | See real pre-approved loan offers.
Get Pre-Approved Online. See Loan Offers in 3 minutes.
What are the income and asset documents required for online pre-approval for investment properties?
The income and asset documents required for loan pre-approval on investment property are standardized for most applicants. However, each applicant is unique and may require additional documents whereas the mortgage provider will notify the applicant if additional documents are needed.
8 Income and asset documents required for pre-approval on investment properties:
- 2 Months Bank Statements verifying down payment funds.
- 1 Month most recent pay-stubs for each applicant.
- Year-to-date profit and loss statements for self employed applicants.
- Copy of existing rental leases on other investment properties owned.
- Most recent mortgage statements for each property owned.
- Last 2 years IRS Tax Returns or W2s
- Copy of Drivers License.
- Copy of social security cards
What is the process of buying a real estate investment property after getting pre-approved?
Once you obtain a mortgage pre-approval, and verified pre-approval letter, you will be informed of your maximum pre-approved purchase price you qualify for. Given you are now pre approved, you can begin searching for the perfect investment property for you. It is important to select a qualified real estate agent that has proven experience in investment properties.
13 Steps to Buying an Real Estate Investment Property:
- Get Pre-Qualified: Shop and compare mortgage lenders loan offers or use our online mortgage marketplace.
- Select Loan Offer: Select your pre-qualified loan option that offers the lowest rates and fees.
- Get Pre-Approved: After selecting your loan offer, request a mortgage pre-approval.
- Upload Documents: Provide all income and asset documents.
- Pre-Approval Letter: Receive your pre-approval letter that identifies eligible pre-approved purchase price.
- Real Estate Agent: Select a qualified experienced real estate agent that specializes in investment help.
- Home Shopping: Compare homes for future appreciation, average rents in the area, repairs and upgrades.
- Make an Offer: Work with your real estate agent to make a written offer to purchase the property.
- Offer Accepted: Collect the signed real estate signed contract and provide to lender.
- Underwriiting: Work with your lender to clear underwriting conditions
- Appraisal: The lender will order a real estate appraisal to confirm the condition and value of the home.
- Home Inspection: Best practices suggest that you obtain an independent home inspector that will identify any hidden issues.
- Closing Time: Closing will normally take place at the Title Agency or real estate attorney's office.
No credit pulls, spam calls or emails. Just stupid low rates.
Get Pre-Approved or Try the Mortgage Calculator.
Summary of getting an online pre-approval for an investment property
The opportunity to build wealth through real estate investing can offer many investors with a steady stream of cash flow from rents and over the years capture the appreciation in the increased home price year over year. It is important to take advantage of the process of getting online pre-approval for an investment property as a time to also shop and compare mortgage loan offers from many lenders.
The best loan type to purchase an investment property is conventional mortgage loans that require 15-25% down payment based upon the number of other financed properties owned at the time of application. Minimizing the cost of financing on investment properties is the first and most important part of buying a rental property. We encourage you to contact us if you have any questions or need any assistance in getting your online mortgage pre-approval for investment properties.
