With almost every purchase, there is a loan of some sort involved. Whether it is a conventional loan from your local bank, a hard-money loan from a private investor, an FHA loan from the Government or even a seller-carry loan, there are common financial aspects they look at when considering you as an investment.
Things to pay attention to:
1. Credit Score
2. Debt to Income ratio aka DTI
A. Figure out your mandatory monthly minimum payments on all credit lines. Divide that number against your anticipatedprincipal, interest, taxes and insurance payment (contact me if you need to figure out how). If that number is somewhere between 45-50, then you most likely have cleared that large hurdle. Obtaining that loan amount is likely if all other aspects fall into their guidelines.
3. No new payments. Do not make any large purchases during your escrow period unless you absolutely have to.
4. Job History: How many years have you been employed at the same place currently.
5. Strong asset statement
There are many more pieces of information lenders look for. This is just the beginning. Contact me if you would like to discuss this matter further.