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.
“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.
“Mark, Darci & Co were wonderful to work with! They were responsive, managed a complex buying situation with ease, incredibly communicative and always ensured I was caught up with what was going on and where I was in the process. Heavily recommend!”
- Zach J.
“ My experience is always fantastic & seamless. Mayen Grigorian is a true professional. He’s honest, he goes above and beyond, he’s efficient, always available and knowledgeable. I never have to call for updates he beats me to it and sends updates regarding the loan. Our clients are very happy and we’re very happy! Five star service, I can’t say enough good things about Mayen as a person and a professional. Hands down! He’s The Best!”
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“Darci, Mark and their team of professionals made the purchase for our amazing buyers absolutely seamless. The level of service they provide is second to none! They delivered the best rate and the best terms for the clients. Mark and Darci are very transparent with their fees and have a stellar reputation in the community. I highly recommend Darci and Mark for all your mortgage needs!”
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“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!!!”
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