(Newswire.net — May 25, 2020) — Colorado Exclusive Buyer Agents Association (CEBAA) has launched a new guide on getting a mortgage to fund an investment property for people interested in buying in the Colorado area.
The Colorado Exclusive Buyer Agents Association (CEBAA) has launched a new guide aimed at people who want to know how they can successfully get a mortgage from lenders and invest in property around Colorado.
Find out more at https://homebuyerscolorado.org/get-a-co-mortgage-2020/
The newly launched guide provides advice on how to fund a property investment. The guide acknowledges the real estate market is slowing down due the global COVID-19 pandemic, but this may lead to opportunities in the future.
According to the survey conducted by the National Associations of Realtors on April 19th to the 20th, 44% of buyers have decided to delay their plans, 22% have stopped due to job loss and uncertainty, and only 10% have remained in the process. But even with the said statistics, Barry and Larry reported that the Colorado Front range market is staying competitive. As of the week of April 18, the median price for a single-detached home in Colorado at $485,000 and in Colorado Springs at $365,000.
An investment property is essentially real estate purchased with the intention of gaining a return, whether through the sale of the property or a rental income. This type of investment is ideally suited to people who have additional capital that they want to invest for the long-term or as a retirement fund.
There are several ways people can secure funding for an investment property, including maintaining a high credit score. A leading mortgage banker in Colorado suggests having a credit score equal to or above 740 increases the chance of achieving a better interest rate.
A higher down payment may also help potential buyers gain a better interest rate. Many banks are nervous because of COVID-19 but being able to provide extra capital may help an application to be viewed favorably.
Diversifying the search area to include smaller financial institutions instead of automatically going to big banks can provide advantages. Local financial institutions will likely know the local market better and be able to advise on the best investment choices available.
Other options include approaching the homeowner to see if they would be interested in a mutually beneficial agreement. In this situation, all potential scenarios and details should be fully discussed and planned for.
The last option is to contact a local buyer’s agent as they will have specialist knowledge of the area and will be able to help with important aspects including financing, insurance, inspections, and everything else relating to real estate.
A company spokesperson said: “The key to funding your investment property is to present yourself as someone with a solid employment history and a steady income. Lenders want to know you can repay what you borrow.”
“Researching and educating yourself on the local market and the finance available to you, as well as managing your finances responsibly and seeking expert advice, will help you to fund your dream investment property,” they added. For information on getting a mortgage in 2020 in other states, visit the National Association of Buyer Agents website at :https://buyeragentsearch.com/find-a-buyers-agent/
To find out more or view the Colorado guide online, interested parties are invited to visit the website above.