Hello everyone. Ok it's been a while since my last post. I have finally decided what I'm looking for. It's. A multi fam unit in Easton P. A. For under 100k. should be able to get nice property with little work needed. It's will be a rental unit and I will be an absentee owner I'll be staying in Brooklyn. I am considering making some space available at the property for my self so I can have a place to stay if needed to go up there to take care of something. So now that I know what I want should I get pre approved first or should I have an agent take me around show me some properties first.
When it comes to getting a loan should I tell the bank that I'm purchasing the property for my self or for income.
Regardless of what property it is, disclose your plan to the bank, they will tell you how it will be classified. :)
I guess I would get pre-approved/pre-qualified first. May save a lot of time. As @Bill Gulley suggests, tell the bank what you are trying to do. A non-seasoned investor buying out of state may require more down payment and other stricter terms. Please keep us posted how this is going!
I recommend getting pre-approved first, preferably through a mortgage broker instead of just a bank. Broker's have access to multiple lendors and if your needs change based on the deal you find they are pretty flexible as they can source your loan based on the situation.
I would talk with a few banks and see who offers the best terms. The lenders that I have dealt with when it comes to rentals will count the rent from the property (based on their calculations) towards my income when calculating DTI, so long as I put 20-25% down. Also, if you are planning on applying as an owner occupant they will want to know what you are doing with your current house, assuming that you own, and they will look at the distance the property is from your job.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!