Mortgage rates are still low. The U.S. housing recovery has taken hold. The nation’s economy is picking up. Housing experts are predicting 2014 will be one of the best years ever to invest in real estate.
Although home prices are increasing, buying a home and renting it out still makes sense in many markets nationwide. The inventory of homes for sale is better now than one year ago, giving home buyers more choices. But as with just about anything in life, preparation is key. If you’re thinking about purchasing a rental, here are a few things you’ll want to do right now:
Order your credit report. Under federal law, you are entitled to one free credit report each year from all three credit-reporting bureaus: Experian, Equifax and Trans Union. Simply go to Annualcreditreport.com to request your free copy, which you can access within minutes online or elect to have it mailed to you. Your credit report details your payment history – the good and the bad. Mortgage lenders use credit scores, along with your income, to help determine not only whether you qualify for a home loan but how much home you can afford. Be sure to check for any errors in your credit report and report any inaccuracies. Contact each bureau to get any errors fixed as soon as possible.
Order your credit score. The next thing you’ll want to to do is obtain your credit score, the three-digit number representing the quality of your credit record. When you order your score, you will be given specific tips on how to improve it. Consider this your action plan; these are the things that will help you improve your score the most. You can order your score from any of the credit-reporting bureaus, or from credit-scoring company Fair Issac.
Find a lender that works with property investors. The right lender can make all the difference. Getting a mortgage loan for an investment property is different than getting financing for a home you’re going to live in. The right lender can help you make your dream of being a property investor a reality!