Tips for Financing Your Investment Property
2017 is literally right around the corner. Do have a resolution to invest in the New Year, in Contra Costa County? 2017 is your time to shine and make your dreams and aspirations come true in the real estate market. Interest rates are remaining low and the investment market is booming in demand. To ensure you are ready, here are some tips to prepare for financing your investment property.
This is a very important factor to consider when investing. Securing this 20-25% down-payment helps insure you to get a traditional loan, and possibly even a better interest rate.
Is Your Credit Score Ready?
This may sound like a given, however, it is important to go over before headed to the loan officer. A higher credit score makes you a desirable candidate for an investment loan. It also can save you from a fee for the loan based on the score. If you are looking for a good number to start with, 740 is a safe number you can take to a lender.
Often times, your friendly neighborhood bank can be the best option for you. Maybe you have extenuating circumstances but are still a great candidate for a loan? Maybe you don’t quite have the whole down payment? Big banks can have more red tape to get through versus a smaller or more independent bank. Consider your own situation and decide what is right for you. Remember, it is your choice!
Look for Profit
You want to be sure to secure the right investment property that will bring you profit. Renovation funds can be secured through home equity lines of credit, credit cards, and in some cases, life insurance policies. These options can bring more risk so just make sure it is right for you and worth the investment if you go these routes.