I see you are investing. Yes, you will need to get preapproved first and then find the right agent. You will also need a great property manager who knows the area, one that creates value for the owner and will put your mind at ease and oversee tenants.
Whether it is a single family home, a multiplex, a larger apartment building or commercial purchase. the important aspect is looking at what your goal is. Do you want a single family home to rent to possibly retire in someday? Are you looking for an investment like a duplex where you can rent one or more units or are you looking for a property that is going to give you a larger return.
I'm easy to talk to and can give you a few tips being an owner and investor and property manager myself.
W Real Estate and W Property Management
Director of Management and Leasing
500 Bicentennial Way Suite 300
Santa Rosa, CA email@example.com
You are not ready to start that search for an investment, until you are first pre-approved, hopefully with a local Sonoma County lender; someone you can sit down with and talk to in person. Then you are ready to talk to a Realtor who can listen to the strategy you have decided on, and find the property that meets those requirements.
Best of luck, feel free to contact any of us directly for more information!
1. Meet with a financial planner to determine how investing in real estate will affect your global financial situation. Consider how this type of investment could influence your income, financial risk, tax situation, retirement plans, etc.
2. Get educated and get a mentor. You need to know just as much or more about real estate investment than the agent you use to buy property. Your mentor should be someone who knows the business, such as an experienced fellow investor, retired agent, or an agent who is willing to share with you but WILL NOT BE INVOLVED IN YOUR TRANSACTIONS (that would be a conflict of interest). A good mentor will show you how to develop investment strategies appropriate for your circumstances, create a business plan, screen properties, and assemble a trusted team (agent, lender, inspectors, maintenance crew, etc.).
Real estate investment isn't rocket surgery, but it's complicated, so do all you can to prepare before you put your hard-earned money on the line.
Jennifer Ready - firstname.lastname@example.org
Finding a RealtorÂ® or getting your Pre-Approval first are interchangeable (the RealtorÂ® can suggest a reliable mortgage Broker/Banker). The key point here is that you do not start looking for property until you obtain a Pre-Approval. Unless you are paying in CASH, looking at property without a Pre-Approval is a waste of everyone's time.
In the Real Estate industry the terms Pre-Qualification and Pre-Approval are used interchangeably to mean the same thing - they are not. Please review the following to understand the difference: http://www.Steven-Anthony.com/GettingStarted (speaks to getting a "True Pre-Approval"). Retail Lenders (Wells/BofA/etc) RARELY provide a True Pre-Approval; only Mortgage Broker/Bankers typically take the extra step to obtain an automated underwriting system approval, which puts you at an advantage over other offers that do not have this.
These links should also give you a good understanding of the financing process:
Thereâ€™s an issue for the Buyer who moves forward with making an offer without fully vetting financial capacity: There are three primary contingencies that allow contract cancellation without the loss of the Buyer's deposit money; however, the cost for inspections and appraisals is a "sunk cost." This means the Buyer expends about $1,000 (Appraisal, Home, Pest, Chimney, etc.) that does not get reimbursed if they find out they can't afford the home or a debt/income "surprise" is later uncovered via the Lenderâ€™s Prior-to-Doc (loan docs) or Prior-to-Funding requests.
That is a great question! Any successful, good, realtor probably won't even talk to you unless you are pre approved for a mortgage. Otherwise it is almost a waste of their time. With that said, even if you found a realtor to work with, no selling agent will even accept your offer without a pre approval as well. So to answer your question, you should take the time to get pre approved. We would be happy to take care of that for you here at Residential Finance Corp. We are a national direct lender with exceptional rates and even better service. We close loans on average, 19 days from start to finish and can close in as little as 10 days. Feel free to contact me to get you in touch with one of our Senior Loan Officers licensed in your State.
Joshua A. Lerette
Residential Finance Corp
800-930-7334 ext. 1108