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Quick Guide to Buying Your First Investment Property

Usually, a house is one of the most significant assets most people own or get to buy. When you buy to invest, however, the stakes are a bit higher, as the right choices can lead to a nice passive income.

But before you sign the papers and purchase your investment property, be sure to check this short guide from CSMC Mortgage to get started!

1. Getting a Mortgage

If you don’t plan to pay in full for your investment property, you’ll need to consider getting a mortgage. You should start the process by looking into how much you can afford to get a sense of the type of property you'll end up buying.

2. Wait Until You Get Pre Approved

No matter if you're looking to buy an investment property or a home for yourself, one of the biggest mistakes you can make is this:

Setting your sights on a specific property before you get pre-approved.

A few things could go wrong with this scenario:

Although it’s not a commitment to lend, pre-approval is like getting the green light to start looking for a home, knowing your budget and the terms of the agreement. It can also speed up the loan application process once you are ready to move forward. So, before you shop the market for investment opportunities, talk to a loan officer first to get pre-approved!

3. Understand Your Property Investment Loan

When looking for an investment property, you likely won't be able to access FHA or VA loans, unless you plan to buy multiple units and live in one of them.

But most commonly, investment properties are financed through agency loans. It comes either with a fixed rate or an adjustable rate, both of which have specific requirements for qualification:

Then, you will need to meet the other requirements of a regular mortgage, such as proving you can cover the monthly payments and providing two years of tax returns.

4. Find the Property

As stated, we recommend looking for your investment property after seeing if you can get pre-approved. You may want to look for properties that won't require extensive work in terms of repairs or adding extra amenities. It generally depends on how much you're looking to invest, but fixer-uppers can come with low upfront costs, and drain your finances later on.

5. Get Familiar with Your Obligations as a Landlord

Being a landlord isn't just an opportunity for passive income! Be sure to check local and state requirements you sign on to by becoming a landlord.

Over to You

If you’re looking to finance your first investment property, look no further than CSMC Mortgage. Reach out to us today to find out more about our financing options.

“With this being my first home purchase, my loan officer was very good at explaining everything to me and helping me with all my needs. Thank you for having such great people in the right place!”

- Cathleen H.

“These folks are conscience and easy to work with. The “calm” as the “storm” of home loans rolls through! I would not use anyone else. They make sure ALL your questions are answered, be that what competitors may have offered, or ads you may have heard or seen. What a pleasure to do business with. Thank you team CSMC.”

- Michael G.

“I had the best experience with CSMC Mortgage. Buying a home is very stressful with all of the paperwork that has to be filled out. Faye was amazing! I have given several people her contact info, who are scared to take the step to homeownership. She took ALL of the stress away for me. I honestly, didn’t have to do much. She accommodated my crazy work schedule and help me get things done in a timely manner. She made me feel so comfortable and at ease. There were no surprises when it was time to sign and pay. I highly recommend her to anyone in need of her services and guidance. I can’t thank her enough.”

- Lisa M.

“Faye helped me purchase my first home last year. She was very professional and worked very quickly to help me procure financing. She made herself available around my schedule and took the time to explain my options for financing to help me get the lowest rate possible. Would highly recommend her to anyone looking for someone that is professional, highly knowledgeable, polite, and responsive.”

- James Z.

“This review is about Mark and Darci Richardson from CSMC Mortage in Simi Valley. This team is the BEST! For the past 12 years our home was "underwater" due to the "crash" in 2007, and unable to do anything with the mortgage except pay it. These two kept on top of things and finally the house qualified to REFI. We just completed everything and it closed last week... and they saved us over $900 a month!! That's a huge savings for a couple of senior citizens! We are SO happy now and finally can breathe. Thanks to Mark and Darci and CSMC Mortgage for following through, jumping through all the hoops necessary and helping us out! I can't recommend them more... they are the BEST!!!”

- Shari S.

“David Honda and his team rocked!! They had great technology that took so much of the pain of home buying away. They were attentive to our specific needs and were on top of our loan process! David was always available, even when he was in Hawaii, and super responsive! Thanks David, Melissa and the team for an easy and great home buying experience.”

- Raymond F.

“Baret Grigorian was amazing!! From start to finish Baret was there to help in every way. I never felt like I had to call him to follow up on my loan transaction and he always kept me informed. He was able to get me great financing rates, a lower payment AND money back! Thank you Baret!! I look forward to working with you again in the future!!”

- Kenny D.

“CSMC Mortgage took great care of us and our home buying needs. Tony was more than we could have ever asked for, he went above and beyond for us and we couldn’t have been more grateful for all his hard work. CSMC Mortgage has a great and friendly staff, I would highly recommend them to anyone looking into buying a home.”

- Jannet A.