When Investing in [Profile.market7]Real Estate, Credit is Priority Number One

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November 1, 2009, by Burger Professionals in Real Estate Investing

The better your credit score is, the less obstacles you'll have to cross, when the mortgage companies, in [Profile.market7], are discussing your creditworthiness They are, generally, referring to your FICO score, looking at your credit. This is a compilation of the three major credit bureaus, and is the standard for determining credit worthiness in the industry.

When looking at your credit score, you will have access to the best loans, and more negotiating room, with a FICO score above 710.

The investor now has many different loan options available to him when purchasing investment property in [Profile.market7]. There are even some loans that will cover the total purchase price, however, with the current credit situation they are far, and few, between.

If your credit is not excellent, there are still options available. You may be able to negotiate the seller carrying a second mortgage on the property in [Profile.market7].

In one scenario, both you, and the seller, are both happy with the price negotiated. Your loan will take care of eighty percent of the purchase price, and the seller accepts payments for the remaining twenty percent.

It is easier to get a loan for 80% of the purchase price. This is, especially, true, if you have negotiated a price below market value. Maybe you negotiated a sale price of $100.000, compared to an actual market value of about $127,000.

In this scenario the money coming from the lender is easier to get. The risk is minimal.

For information on Mason County Real Estate, go to http://www.MasonCountyHomesForSale.com