Monthly Archives: March 2016

Guide to Qualify for a Conventional Loan

Category : Conventional Loan

A majority of the readers here have a full-time job and a mortgage on their primary residence, but they don’t know if they qualify for another mortgage. Being that I like to keep investing simple, I suggest newbies focus on conventional financing for their first investment property purchase and set a healthy down payment of 25-30%. It’s better to have a general understanding of loan lending requirements instead of becoming lost in the technical details.

 Lending Requirements

  • Your current salary
  • Current debts (short term and long term)
  • Credit history
  • Employment history
  • Payment history for current mortgage
  • And most importantly, your debt to income ratio (DTI)

Debt To Income Ratio (DTI)

Bankers use DTI to determine how much money they can safely loan you without risking a potential default.

The banker will determine your DTI cap by multiplying your gross monthly income by the maximum debt percentage (I’ve decided not to include the front and back end ratio because I want to keep this simple).

 

To learn more about our financing solutions for Conventional Loans, please call us at (310) 734 4044 or visit us at www.magnaloans.com


How to make your Rental Property Appealing to Tenants

Pay attention to the details. Sometimes it’s the small things that can seal the deal in a tenant’s eyes. Paying attention to smaller details, such as the hardware on your cabinetry or the fixtures in your bathroom, can mean the difference in whether you score a lease or not. Take a look at your space (and try to look at it as objectively as possible), and take note where some of these little things can be updated and improved to appeal more to renters.

Security: A large part of the security of your property is tied in with the location, but there are some additional steps you can take to make your tenants feel safer. You might consider adding an alarm system, installing better quality locks or security doors, or adding a fence.

Recently renovated: Who wants to live in an outdated home with stained carpet and dirty walls? Exactly no one. Which is why you should consider investing in a home that’s recently undergone renovation or at least been given a fresh coat of paint and new or thoroughly cleaned floors.

Plenty of storage: Storage is another area of concern for most tenants, or more specifically, lack of storage. People need adequate space to store their belongings, so make sure your unit can provide this. If it doesn’t, give some thought to how you can increase storage space in your home.

This few simple tips would help you getting best rent on your property.


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