Have you been thinking about investing in Santa Clarita real estate? If so, you know how important it is to get your finances in order before searching for properties or scheduling appointments. After all, doing this will help you save quite a few headaches in the long run.
Making a real estate investment may be one of the biggest investments you ever make, and unless you have money ready for this investment, you’ll need to create a plan to finance the purchase and ensure ongoing cash flow. Before getting in touch with a Santa Clarita real estate agent, there are a few other things you should do.
Create a Plan for Financing the Investment
Traditional financing may be the best option for your initial investment if you have a significant down payment, consistent W-2 income, and a strong credit score. That’s because interest rates are usually low, and the terms on these loans are typically attractive.
It’s important to determine what you can afford based on your expenses and the amount of cash you need to handle upgrades and renovations. Be sure you know where the liquid funds are coming from, increasing the likelihood of getting a good deal. Remember, it’s possible to move much faster when you have cash, which motivates property sellers in Santa Clarita.
Review Your Credit Report and Keep It Positive
It’s a good idea to request a copy of your credit report and dispute any errors. You should also explain negative issues or any late payments. Keep your score from falling by avoiding lowering your limits, canceling accounts, or requesting new credit inquiries.
Seek Mortgage Pre-Approval
Being pre-approved for a mortgage will help you with the real estate investment you want to make. Doing this is going to help lock in an interest rate. If the rates fluctuate while you work with a real estate agent to find the perfect investment property, your rate won’t change.
Do Your Homework to Remain Competitive
Just because you have been approved for financing doesn’t mean you are ready to begin shopping. Take some time to shop around and get in touch with other lenders to see if they can offer you a lower interest rate. While just a few percentage points may not seem like that big of a deal, it can help you save tens of thousands of dollars during the lifetime of your loan. It can also help improve your monthly cash flow.
Work with an Experienced and Knowledgeable Real Estate Agent
When you are ready to invest in real estate in Santa Clarita, it’s smart to work with a real estate agent who has experience in the area. This will ensure you find properties that meet your needs and budget. They can also offer more insight into the local properties to ensure you get exactly what you are searching for.
