Hey everyone, I just have a question about mortgage pre-approval. Any thoughts or ideas on what to do if you do not get pre-approved for a mortgage?
A few years back I tried to join a group called “rock star inner circle” not sure if any of you are familiar with them. They basically find properties for you or help you find properties and you invest in the property. Anyways, I couldn’t qualify to join due to not being able to qualify for a mortgage because I didn’t have enough income at the time.
I'm currently still in the education phase of my REI journey and going through listings to test myself on finding deals and have a scheduled meeting with a mortgage broker this week and thought I would ask before I go through the meeting.
While you may not need to be pre-approved, you do need to know how much you can borrow. If you have a regular employment income, you should qualify. The question is for how much. That depends on your level of income and your debt.
Hi Keshera - If you do not qualify for the mortgage, find out how much you do qualify for. Also, ask the mortgage broker what the deal would have to look like for a private mortgage to work for you. Good luck.
Thank you for the feedback, I truly appreciate it.
@Keshera Lyons Qualifying for a mortgage is only is 1 way to buy RE and get into the game. If you do not pre-qualify for a lot of mortgage, find out what is being reported on your credit report and determine if reducing certain line items will help. There may be an error on it. It may be your score is low or your loan usage on credit is high. Also, not all mortgage agents are the same. Meet other agents and ask if they deal with private funds. If you find a good deal, you might want to consider private lending.
The other way to get into RE if you do not qualify for a mortgage is to partner with someone else who can qualify in exchange for you doing the work.
You can signup for free at borrowell.com to check your credit score/history. I'm sure there are other outlets as well.
I am at a similar point in my REI journey and researching creative ways to overcome financing in order to get started. Some avenues include credit unions, private money, seller financing, sandwich leasing, JV Partnerships. Also, if you have the capital commercial properties (5+ units) are an option to discuss with your mortgage broker. I believe the lenders evaluate the property's operating income rather than your personal income.