Pre-approval for multi-family properties

[Megan Hornyak]

Hi everyone!  I am looking at purchasing 2 multi-family properties and they would be my first investment properties.   I have 20% down and excellent credit and am looking for conventional mortgages.  

When buying an investment property, do you get (or have to get) pre approval prior to making an offer?  Or can I make an offer and arrange the financing after? 

Thanks in advance for any advice! 

[Kevin Luttrell]

There's no law that says you must have a pre-approval prior to making an offer, but 99% of sellers and listing agents will not take your offer seriously if you're not pre-approved first. That should be your first step. 

It will also be beneficial for you to speak with a lender to learn the different requirements for your loan type, rate estimates, etc. For example, if you want conventional financing, you'll need at least 25% down for a 2-4 unit property. Not 20%.