how to pre qualify for a loan

how to pre qualify for a loan
In Buying Property - Asked by linda m. - Sep 27, 2011
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Alan C.
Suwanee, GA

For a residential loan, you can easily get "pre-qualified" or "pre-approved" to buy a just about any home up to a certain price point. With commercial properties, it's always on a case-by-case basis.
You can get a informal pre-qual from any banker or mortgage broker for free, but it won't mean that much to a seller. All a commercial pre-qual will do is verify your down payment funds, review your other income sources and tell you what you can afford to buy. If you want to use it for your established business, consider an SBA 504 loan. For a vacant property, you can expect to put down 50% to get financing, since few banks are taking risky bets. For an 80% (or more) occupied office or retail centers, 30 to 35% down is typical these days. Expect to also put up some extra funds (up to 2-5% of the purchase price depending upon the property) for reserves to be held by the lender. These are for leasing commissions, tenant improvements and misc. maintenance work.

Sep 29, 2011
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Allan A.
Plainview, NY

Dear Linda M.
Banks are looking 2 factor .
#1) is the credit scores
#2) is Last 2 Years income tax returns.
bank will qualify the buyer from 31 percent of the annual income. another words if income Tax return shows $100k income $31k is the anually mortgage payment(per year). This is for Residential properties not for commercial.
Charles Rutenberg Realty Inc.
Residential and Commercial
Licensed Associate Real Estate Broker
Allan Aydag

Sep 29, 2011
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