Will This Be The Year You Invest In Real Estate?

Wishing everyone aHappy New Year for 2018! New Years can be full of resolution: work out more, lose weight, eat healthier, start something you have never done before. It can often be the time for "Firsts". You have done a lot of research, a lot of learning so this may be the year you buy a home or invest in real estate property. But before you do, "First things First". Get your financing in order. 

If you have the resources to pay by cash, great. Run the numbers and see not only if you can swing it but how much you are willing to spend. If you don't have the cash lying around and are looking to finance, like most of us, Get a Pre-approval. With a pre-approval, the lender checks and verifies your financial and employment information through documentation, as this confirms your ability to qualify for a mortgage. If you qualify they will approve a specific loan amount. Why is this so important?

First off, you want to know how much you qualify for in order to be realistic in your expectations of what you can buy. It's important to do this PRIOR to even looking at your first property. Granted when we go to a department store we are more apt to browse or window shop. It's not the same when looking at a house or investment property. You wouldn't want to look at a place, fall in love with it, but then find out you can't afford it. Right? Also many sellers don't want people touring their homes just for the sake of walking through. They want serious buyers. If you employ the assistance of a Realtor, these people do a lot of work behind the scenes such as offering advice on cash flow potential, structure/layout of the property and even if it's a good choice to pursue. They spend time scheduling appointments, showing you the properties and setting up searches based upon your requirements and your price range. And price range should always be within the parameters of what you are approved for. Why bite off more than you can chew?

And there is a difference between a pre-qualification and a pre-approval. Also if your spending habits change dramatically after getting a pre-approval, such as you decide to buy that new Lexus, that can certainly affect your pre-approval limit. Ok, so not sure how to get started? Get a pre-approval with a Lender.

There are several different loan types and you should be aware of the options available to you. So talk to a Lender to get started in Real Estate Investing!