Am I being Tested OR Am I being told to Wait?!

Buying & Selling Real Estate
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Am I being Tested OR Am I being told to Wait?!

Shedrick Boyd
Member since 2020 · 23 posts · 10 votes

Currently in the process of getting financing. Going to be a owner occupancy conventional, so only need 5%, I’m on board!

Lender tells me they can't use rental income because I don't have 2 years rental history...Now my rental property mortgage is being fully calculated (even though I'm not paying for it at all) and screwing with my DTI.

Now my qualified amount is significantly less and in my market, (shoutout Denver, CO✌🏽) that wouldn’t be enough to purchase me a shed....

With the current market I am now beginning to think maybe this is not my time, I can wait, save up a lot more, and come back when it’s less competitive. OR maybe I need to keep looking around and find a different lender?

Is the universe telling me to WAIT OR is it throwing me a TEST!? Thoughts anyone!?

P.S. I’ve spoke with 3 different lenders now and had my credit pulled 3 different times. Getting old at this point...

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James Carlson
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
5y

@Shedrick Boyd

To you other question: Should you wait to buy a home in Denver because the market is so crazy hot?

I'm interested in other's opinions here, but my answer is an emphatic "no." There's no indication that prices are going anywhere but up. Zillow's survey of economists said Denver's likely to be a top 5 hottest market in the U.S. again this year. Appreciation is forecast in the double digits. (So if you're looking at a $450,000 house right now, it will be nearly $500,000 next year.) Interest rates are forecast to go up slightly, but only slightly to the like the low 3% area. That's not going to dampen demand at all. With the pandemic, we're seeing an influx of remote workers as well, many from coastal areas where their higher prices make Denver seem relatively affordable, so they're buying up things as well. 

It's not a great scenario, but I don't see prices going down or even evening out for the foreseeable future.

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  • Michael Green
    Rental Property Investor · Saint Robert, MO · Member since 2016 · 5 posts · 1 vote
    5y

    @Shedrick Boyd have you thought about looking at a cheaper market and investing out of state?

    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    Move to Ohio

    1Reply
  • Ray Fisher
    Rental Property Investor · Higginson, AR · Member since 2015 · 123 posts · 101 votes
    5y

    start a LLC for your rentals, Porfolio Lenders, keeps it off your personal credit report, A little higher interest , 15 and 20 yr amortizations, 3 to 5 yr lock on interest rates. We have been doing it for years. I do have to sign personal guarantees, but mu DTI is unscathed. And credit score is still good.

    0Reply
  • Rob Joon
    Realtor · Saugatuck, MI · Member since 2015 · 34 posts · 4 votes
    5y

    What is your latest credit score? 

    0Reply
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