Originally posted by: petejk
I'm going to get pre-qualified for a loan (condo).
Anyone have any personal suggestions based on experience?
So far, I've paid off all CC debt...but haven't ran a credit report
to get my scores.
I live at home, but plan to get condo the OC and rent it out.
First, check your credit report. Search the forums to find the thread on how to get your free report. By law, you can get one report per year from each of the three main agencies.
Secondly, your loan will depend on much more than your CC debt. Are you frequently deliquent on payments? Do you have other outstanding loans (car, school, credit, etc.)? How many lines of credit do you have open currently (credit cards from places like Best Buy, Gap, etc all count)? How stable is your job? Can you provide W-2's from last year and beyond to prove you can pay-off what you borrow? How much do you have saved (banking, checking, 401K, etc.)?
I was just at the mortgage agency this morning to sign off on a loan for a condo. These are all things you need to prove/verify on the loan application. I've been at my job for 3 years and had no problem getting a low rate. Then again, I live in a moderately priced area and didn't need to borrow that much, IMO. My note will be for ~$180,000.
Keep in mind that the interest rate on investment property is going to be higher than a normal primary residence rate. Rates are hovering around 5.5% right now IIRC.
Facebook
Twitter