Should I seek financing before shopping?

8 Replies

Hello everyone, Just wanted to know should I seek financing to know the numbers on what I can purchase before looking for the property or vice versa??

@David McEwan  - That depends.  For buy and hold - Yes.  you will need to know how much you can afford since the loan is based off your income.  For fix and Flips - No.  You will be in the hard money space which is loaned off of the deal

Okay great and thanks @Brianna!

I second @Brianna Schmidt . Having financing in place will also help you act quickly if you find a property you like. No need to put the cart before the horse!

@David McEwan

I would secure financing prior to shopping, however just ran into a deal where I was 'Preapproved" for financing, signed a contract & was sidelined due to a garage apartment & forced to seek cash from another source. If your shopping for money make sure your clear about your intentions. Good luck

I also second the idea of securing financing before shopping. It will also help to use multiple exit strategies should circumstances change.

Thanks guys!! It only makes sense!

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