All Forum Posts by: Cameron Bremner

You can certainly get pre-approved and start speaking with lenders now. That way you’ll know exactly how much you’ll be pre-approved , and when the right property turns up you’ll be ready to pull the trigger. Think of that pre-approval letter as your wallet , you’ll need it to submit offers on properties that you’d like to purchase. Most real estate agents will want to see a pre-approval letter before they start showing you the properties as well.

Great, thanks for clearing that up, I will get on that ASAP! So the bank would approve me for an amount rather than for a particular house? Would this amount then be contingent on the bank verifying that they think the house is a good purchase?

0 Votes

Quote from @Suzanne Player:

These are great questions & you have some general info, but you are at the point where you need very specific info pertaining to yourself & the county you plan on buying in. Also, in this market, almost all sellers will require a pre-approval letter, why not get one now even if you're not entirely ready to buy, so you have a better roadmap to your 1st purchase.

Contact at least 3 mortgage brokers/bankers who are experienced in your area. Your profile page doesn't say where you are or invest in (if they're not the same place), it's much easier to get advice on these forums if there's a geographic context to your posts. Try to get recommendations, message me if you like, depending on where you're buying I might know someone.

Good luck, it's great you're starting your investing at a young age

Thanks for the response Suzanne! I'm eager to start reaching out to lenders, but my once concern is that the main property I'm interested in actually isn't on the market yet- it's where I'm renting currently, and the landlord is planning on selling soon. Would I still be able to go to a lender to get pre-approved on the market value of the house, or do they only pre-approve on active listings? Am I able to just go to a lender for a general consultation and see how much of a loan I'd be likely to qualify for? I'm looking to purchase in Burlington, Vermont by the way, if you have any connections in the area I'd be thrilled to know them!

0 Votes

Quote from @Mackenzie Grate:

I would recommend you reach out to specific lenders now and ask them these questions directly. They are all different and will all have slightly different answers. They will take you step by step through your specific situation and tell you what works for them, and what does not. Oftentimes, they may even refer another lender if they can't lend on it.

A broker could be a great person to go to as well because they work with various lenders and will help match your needs to the loan package that works best for what you want to do.

Ignore general rules of thumb and just keep reaching out. If the deal is good, and you have good credit, a bank will lend on it. If every bank won't lend on it, there may be a common thread you can pull to help you adjust your search criteria.

Good luck and happy hunting!

Hi Mackenzie, thanks for the reply! The property I'm interested in actually isn't on the market yet- it's where I'm renting currently and I know from talking to the landlord that he's selling soon. Would I still be able to go to a lender to get pre-approved on the market value of the house, or do they only pre-approve on active listings? Would I be able to just go to a lender for a general consultation and see how much house I'm able to afford? Sorry if these are basic questions- I've never taken out a loan before and am not familiar with the process.

0 Votes

Quote from @Shaun Weekes:

Quote from @Cameron Bremner:

I (21M) have been wanting to get into the real estate investing space for some time and am looking to purchase a multifamily to house hack. The main issue I’m facing is that I have only been working in my current job (first ever salaried position) for ~8 months, as I was in college last until last May, and I understand that 2 years of consistent income is considered a requirement for lenders. I had a few short stints in part time jobs in college, but nothing consistent. I now make 68k and have been saving like crazy, which along with some investments I made with money from my high school job gives me around 80k to play with. I also have a good (~780) credit score and no debt.

I currently have my eyes on a fourplex for $500k, which according to my calculations will cashflow ~$350 with me living in one of the units, and then ~$1,850 should I decide to move out and rent my unit (this accounts for mortgage payments based on a 3.5% down FHA loan, insurance, property tax, repairs, capX, and vacancy). My plan would be to live there for the year required by the FHA loan then move out and rent out my unit. So given this plan, what are my odds of getting approved for an FHA loan given my limited employment history? Am I setting my sights too high by pursuing a $500k house, and would I be more likely to qualify on a less expensive one? Is it worth looking into conventional loans with mortgage insurance as an alternative? I'm aware that there are other methods of creative financing (bringing in a partner, seller financing, etc) but I'd like to avoid complicating things with a partner if possible since I am able to afford the down payment and would like to manage the property myself. I also don't believe seller financing is an option for this property.

I’d welcome any comments or suggestions on the situation!

If you went to college and graduated with a degree in marketing and you're now the marketing manager at the company, you can use your degree towards the 2 years of employment. That's just an example and just understand your degree can be used towards the 2 years of employment if it's all in a similar field.

I hope this helps and have a good one.

Thanks for the info, that's news to me! I got my degree in Mathematics with a minor in Computer Science and now work in Software Engineering- do you think those fields are related enough to qualify?

0 Votes

Quote from @Vanessa Ng:

Hi @Cameron Bremner,

You can count your college education towards your 2 year work history as long as what you went to school for is in the same field / related to what you're doing now in work. You mention both FHA and Conv. FHA would only require you to put 3.5% down on a 4 plex, whereas Conventional would require 25% down. One thing to keep in mind, FHA does have county loan limits. Depending on the county you're purchasing in, you might mot be able to purchase a home in the $500K range as it might exceed the county loan limit. It's best to speak with a lender and they'd be able to work up the different loan options for you. Hope this helps :) !

Thanks for the reply, I went to school for Mathematics with a minor in Computer Science and now work in Software Engineering so hopefully that will qualify me! I wasn't aware of the FHA limits, it looks like the limit for my county is lower than what I'd need for a 1 unit, but greater than $500k for a 4 unit- does that mean that I'd be able to house hack a 4 unit under the 4 unit limit, even though I'd only be living in one of the units?

0 Votes

I’d welcome any comments or suggestions on the situation!

1 Vote

All Forum Posts by: Cameron Bremner

Cameron Bremner has started 1 posts and replied 6 times.

Post: Is it possible to get a loan with <2 years of employment history?

Post: Is it possible to get a loan with <2 years of employment history?

Post: Is it possible to get a loan with <2 years of employment history?

Post: Is it possible to get a loan with <2 years of employment history?

Post: Is it possible to get a loan with <2 years of employment history?

Post: Is it possible to get a loan with <2 years of employment history?