I'm starting out and want to do a deal outside of my area (San Diego). Are there banks that will offer mortgages outside of the current state you live in? I'm not sure how the pre-approval process works with investing outside of your state.
Yes. There are banks that offer mortgages in multiple states. Pre-approval will require you to fill out an application and based upon the information you provide and a credit check you will either receive pre-approval or not. Remember though that pre-approval is not a commitment to lend by the lender.
@Matthew Roberts Just this past week I was in SoCal offering free seminars to investors looking to invest out of state. Drives me crazy sometimes when gurus offer REI training when there are great tools available (such as BP) at a much lower cost. I know a great lender based in CA that works with investors financing options all over the country. Send me a PM and lets connect and I will get you their contact info.
It's not so much about lenders offering loans in other states, that part is pretty easy. You just have to use a lender who is licensed to loan in the state that you are buying in.
The more significant factor is using a lender who is investor-friendly. The big banks, like WF or BoA or any of those, are unlikely ever going to close a loan on an investment property, despite them saying they can and that they can do it in the state you are buying in.
I'm in LA and all my properties are financed and out-of-state. Pretty easy once you have the right lender.
I am here in San Diego as well. Lets connect. I have a great, investor friendly lender that can assist you with lending in any state.
Hey I'm in SD as well and I've invested out of state with NFCU - 15 year fixed rate loan, 25% down investment loans. Though I should warn you, you *must* have boots on the ground if you're doing that as you lose a lot of control investing out of state and are basically forced to use a PM. Lack of control is a big negative in real estate investing but I totally get why you would invest out of state being in SD right now, us being so late in the cycle.
It's a great time to flip in SD though with the crazy appreciation. We still got at least a year of good times ahead of us.