Midland Mortgage Corporation Will Teach You Everything You Need To Get Financing For Investment Property.
Interested in purchasing an investment property? Connect with an experienced loan specialist before you start applying for financing. By carefully matching your resources and finances to the right lending programs, we can ensure the process goes quickly and easily. Purchasing a home for rental income isn’t like buying a primary home, or even a second home or vacation property.
Why Do Lenders Consider Investment Property Loans So Risky?
Loans for second homes are doing well, but if you plan to rent your house out on the weekends, you’ll need to be covered by a different type of mortgage. Why? These properties come with increased risks.
Banks aren’t able to vet your renters. Third parties can easily stop paying rent. Worse, they can destroy your house, leaving it uninhabitable and you without the funds to pay your bills.
What Will You Need To Secure An Investment Property Mortgage?
Midland Mortgage Corporation consultants specialize in residential loans, including those used for investment properties.
We have the experience needed to get you qualified by focusing on the following issues:
- Your credit score – proof of your ability to stay on top of your finances
- Your savings – enough to cover at least 6 months of expenses for all your existing mortgages
- Your down payment – cash reserves of 20% or more of a property’s purchase price
In order for your loan to be processed as quickly as possible, make sure you complete your application fully. An experienced mortgage professional will know the latest, most effective methods for filing and will expedite your closing period by putting these industry tips to work.
You will likely need to provide:
- Proof of income
- Proof of savings
- Proof of source of your down payment
- Proof of inspections, assessment, and title search
An official source for this information, works better for you. For instance, tax returns and tax stubs take precedence over your bank statements when it comes to earnings. You’ll need special help if attempting to claim rental income. There are ways to qualify these payments, but in many cases, a lender won’t give them the same credence as money from employment.
On your own, it will be quite difficult to secure financing for an investment property, but armed with the right support, you’ll sail through the approval process. Contact Midland Mortgage Corporation to go over your plans today.