Investment Property Loans & Mortgages

Investment Property Loans

When you are ready to invest in real estate, we will help
you find the financing that meets your needs.

Is an investment home right
for me?

When you are ready to explore the opportunities that real estate investment can offer, we can help you cut through the confusion in order to make the right decisions for your future. The competition for investment homes can be tough in many markets. You may need additional assets for repairs, or times when there are no renters in your property. Do the numbers work out in your favor?

What to consider before buying an investment home.

Investing in real estate is more than just purchasing a property. Rental properties can bring in monthly cash flow, but do you want to act as a landlord? Buying a property at a low price and “flipping” it, fixing it up and selling it for a higher purchase price, will require some home repair know-how, or investing more money for repairs. Both options have pros and cons to consider, but either way you are looking at a tangible asset that can possibly bring in positive cash flow and tax deductions.

We have seen countless investment situations, so go ahead and ask us; we want to help.

Things To Consider

What will you do with this
investment property?

Do you want to find property to put on the rental market, or will you be fixing the home up so you can resell it? The amount of time that you plan on keeping your investment property can help you determine which loan program will suit your plans for your investment property

Can you use the equity in your existing home for a down payment?

Investment properties may have extra stringent requirements from lenders, including a larger down payment. We can help you explore all of your options to get the down payment you need, such as equity in your current home or other assets like money in a brokerage or retirement account.*

What can you deduct?

Tax deductions may be as much a reason to buy an investment property as positive cash flow. Did you know that you may be able to deduct appliances, mortgage insurance, or even mortgage points? Our team of advisors may be able answer your questions about the advantages of real estate investment.

*We are not licensed tax professionals. Please consult your tax or financial advisor for specific tax and financial information.

1.	Get Pre-Approved

This is the time to get in the know. A pre-approval will give you an advantage when you find your perfect home. We can tell you what you need to get pre-approved, so you know the exact loan amount you qualify for, what your monthly payment will look like, and how much taxes and insurance will be. With a pre-approval, the loan process will be smoother and your offer will be stronger.

2.	Loan Application

Your application will provide a complete picture to loan investors of your assets, debts and what you are buying. It will take into account documents such as pay stubs, proof of income, tax returns, employment history, and information on all debts, assets, and sources for down payments. Don’t worry, we will request these documents as applicable for your loan application so that you can be fully prepared.

3.	Select Your Loan Program

Fixed rate? Adjustable? FHA? There are multiple loan options that may fit your unique needs, and we can help you choose. Are you looking for the consistent rates and payments that a fixed rate loan can provide? Do you want the short-term benefits of lower rates that an adjustable rate loan can bring? Our extensive portfolio of loan options means you have more options available to get just what you need.

4.	Processing and Underwriting

Your loan has specific investor guidelines that must be met, and an underwriter will review your documents to be sure that you meet them. While an underwriter reviews your file, an appraisal will be ordered on the home. Additional information may be requested, so don’t panic if you have to turn in more documents. That’s just the underwriter working hard to get your final approval.

5.	Loan Approval

Before your loan is approved, you will receive pre-approval and a list of closing conditions that need to be met. These conditions can include verification that your employer is current and proof that homeowner’s insurance has been obtained. Once closing conditions have been satisfied, the underwriter issues a clear to close. Congratulations, your loan has been approved!

6.	Close the Loan

With an approved loan, you are on the home-stretch towards closing. The lender will send closing documents to a title company that draws up paperwork and arranges for signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!

It is extremely important that you don’t make any major life changes immediately before or during the loan process.
Don’t quit your job, change jobs, or become self employed.
Don’t make any large purchases like a vehicle or furniture.
Don’t co-sign on any loans for someone else.
Don’t spend money that you have set assigned for down payment or closing costs.

Don’t make any changes to your credit like opening new cards, spending on cards, or even closing accounts without guidance from a professional.
Don’t panic! The loan process can seem daunting, particularly if it is your first time. We will help you understand what is needed and to get you to the finish line.