Buying a Rental Property - Step 1 of 8
This is a follow up to my last blog article which was about Brandon Turner's blog article on 8 steps to buying a rental property. (Great, now I feel like an episode of "Joanie Loves Chachi" -- a spin off of an original series.)
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Comments (7)
CC inquires will always ding the credit score.
James Wise, about 10 years ago
Dawn, interesting stuff: "generally all pulls within a 30 day period of time are treated like one pull" Really? That is specifically why I did not shop around during my most recent pre-approval, since I did not want my credit score affected that much.
Amy Oltendorf, about 10 years ago
If you are concerned with the number of hits - i.e. you a buying several properties spaced a few weeks apart - one way keep the inquires down is to have a mortgage/finance broker pull your credit history once and put together a package to shop around to different lenders.
Roy N., about 10 years ago
Multiple applications for credit cards will hurt you. Multiple applications for mortgages or car loans are grouped together. Source: http://www.myfico.com/CreditEducation/FactsFallacies.aspx
Dawn Anastasi, about 10 years ago
Dawn Anastasi - I'm looking forward to this series of blog posts! For all the Canadians readings Dawn's blog - and, if you are not, you should be - just a couple of notes: 1) Mortgages - the obvious one - mortgage financing on residential properties (1-4 units) in Canada is quite different than in the USA. However the message to shop around and get pre-approved still applies. 2) DTI Ratio - In addition to the DTI calculated in the manner outlined above, some Canadian lenders use a Total household debt/income measurement, so make certain you ask how they are determining your carrying capacity ... and whether your spouse/partner is implicated. 3) Alternative lending: Private lenders and Hard Money lenders are both options in Canada, while Peer-to-Peer lending remains illegal in this country (for now). Finally, a general note if I may: If you are hunting big game (commercial real estate: apartment complexes, office buildings, industrial), the process is a little different. While you will have your financial portfolio assembled in advance (your assets, income streams, debts, etc) and may/should have developed a relationship with one, or more, lenders, financing is based upon the deal itself. For this reason it is essential to know what the lenders require - or to work with a broker who does - before putting the deal together.
Roy N., about 10 years ago
Wow Dawn that was a great post! I feel Brandon needs to steal this and have it as the guts to some "BP Ultimate Guide To Financing" type book. :)
Shaun Reilly, about 10 years ago
I hope I'm not writing about stuff that @Brandon Turner was going to write about.
Dawn Anastasi, about 10 years ago