Before Applying for Rental Property Loans
by Steve Cullen
Most people only worry about their rental property loans after they have found their perfect investment property. However if you want to boost your chances of being approved for a new loan, you should start working on your credit scores at least 6 months in advance.
Your credit score and reports plays a vital role not just in landing you that mortgage loan, but also the interest rates that you will be paying over the lifetime of the loan. With an excellent credit score, you will have more mortgage lenders queuing up to offer you cheaper rental property loans.
Most lenders will look at your FICO credit score which ranges from 300 to 850.
From my many interviews with different mortgage lenders, most of them are looking for a FICO score of at least 600 points - This is the minimum you should aim for. A score of 720 and higher is considered excellent and will open doors to cheaper mortgage loans with minimal down payment requirements.
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