Homeowners often choose rental property ownership as an investment or something that yields consistent results. Over the years, however, you may need to refinance your rental portfolio, whether to take advantage of lower interest rates or decrease the monthly mortgage payments. The process of refinancing is not easy when it comes to rental properties.Rental Home Financing Investment Loans
2. Rental Property & Neighborhood Evaluation
Fluctuating home values play a vital role in shaping the size and terms of financing from a lender. There are various powerful tools that you can utilize, including Zillow.com and Trulia.com.
These websites will empower your data and knowledge about the current value of the home. And also, help find a better rate along with a highly reviewed and verified lender. Create a matrix by using the information from various sources and generate an estimate of the current value for each of your rentals.
3. Research Investment Lender Requirements
Just as with a refinance of a primary residence, your credit score and income matter to the lender. Lenders regard rental properties as riskier than average primary residences, so they will evaluate you slightly differently.
Lenders will require all the important documents, including tax returns, debt statements and property documents. Along with these, you may be required to have six months of monthly mortgage payments in the bank. So, make sure you have sufficient funds to meet lender's expectations before submitting the application.
4. Compare our Best Deals for Investment Home Mortgages
Different lenders have different requirements and terms of rental property refinancing. Shop around to discover some amazing deals we can provide that weren't there some years ago. We have a variety of different investment loan plans to secure the best refinancing option for your rental property.
5. Organize your Real Estate Investment Documentation
After qualifying for a loan, your lender will require all the documents supporting the information you provided earlier. Make sure you create separate folders of your leases, acquisition information, insurance, and other important information on your computer. The more effectively you get the documentation up front, the quicker and easier will be the refinancing process.
Refinancing rental properties can prove challenging, but by preparing in advance rental property owners can reduce the refinancing headaches. You need to be a smart borrower that lenders can trust. So, if you are planning to refinance your rental portfolio, consider setting aside cash reserves and gathering documentation.
At Rental Home Financing, we offer competitive pricing to owners looking to refinance their rental properties. Our director Jack Heath is a veteran in home financing and specializes in rental home financing. Being a residential mortgage lender, we provide great deals on multifamily apartment lending with fast approvals. Contact today to refinance commercial and residential rental properties.