When it comes to buying a duplex, it isn’t like the old days. And by old days I mean just 8 to 10 short years ago.
Looking back, people who remember the booming real estate market of the mid 2000’s often joke that anyone who had a pulse could qualify for a loan.
Today, things are quite different; a fact many duplex buyers are unaware of until it’s too late.
Back then, you needed a pre-approval letter from a lender or mortgage broker stating you could qualify for a loan. Getting one took a matter of a couple of hours, required a nominally low credit score, and some proof of income somewhere.
These days, you still need a pre-approval letter with any offer. However, getting one can take weeks, and require copious amounts of documentation like pay stubs and tax returns.
Because this now takes so long, many new investors make the mistake of waiting until they find a property they like before speaking with a lender. The trouble is, really good deals sell quickly. And by the time you get an approval letter, the property you wanted is already gone…leaving you to wonder if your life would have been different, if only you’d had a loan ready to go.
So the very best thing you can do before looking for a duplex to buy is talk to a loan officer.
If you need a referral for one, give me a call.