What are the Current Requirements for House Investment

Buying a property can be a rewarding experience in your life, whether it’s your first property or your third; property investment is becoming a path to attaining financial freedom. However, if you are wanting to buy a house for investment, you will need to meet certain requirements. Applying for mortgage loans can be a complicated process in this article we are going to cover and share our top tips for buying a house for real estate investment in 2019.

Credit Score

A credit score often refers to a numerical representation of your credit report, the FICO score will usually range from 300 – 850 and will determine your credit worthiness, you will need to meet the minimum FICO score needed by your mortgage lender. To qualify you will need to have a decent credit score, if your credit score is good you will the best investment property mortgage rate.

A Pre-Approval Letter

A pre-approval letter is another example of the requirements to buy a house for investment. You will need to acquire one before you begin house hunting. A pre-approval letter shows that you have spoken to a mortgage lender, they have pulled a copy of your credit report, verified your income and employment documents, and determined that you qualify for a mortgage. To be pre-approved there are a number of documents that you will need to present to a loan officer which can include:

• W2 Forms
• Bank Statements
• Pay Stubs
• List of Debts
• List of Assets

Sufficient Money Saved for a Deposit

Having the minimum down payment for investment property saved up is also one of the important requirements to buy a house for investment. For conventional real estate investment loans, you will typically need a down payment of between 5% – 20%. How much you will need for a down payment will depend on the mortgage type you are seeking.

A Knowledgeable Real Estate Agent

Having a knowledgeable real estate agent is also one of the requirements to buy a house for investment. You may think that by not hiring a buyer’s agent, you will be saving money. However, not working with a qualified real estate agent could cost you big time. A real estate agent will help you minimise errors you may make when buying a house to rent out. They have good knowledge of the investment property buying process and the real estate laws. A good realtor will also refer you to lenders and other real estate professionals. Before you consider investing in rental properties, you need to ensure that all the requirements to buy a house are in order. Acquiring investment property financing from mortgage lenders will only be possible if you meet these requirements. Be sure to check that you have all the above requirements before you start the process of buying an investment property.