Unlock Your Next Deal: 3 Expert Tips to Get Pre-Approved for a Real Estate Investment Loan

At Noble Mortgage, we pride ourselves on offering competitive real estate investment loans through our Joe The Investor program, which is designed to help investors like you achieve your goals. One of the most common questions we hear is:

"What do I need to get pre-qualified for a real estate investment loan?”

To set you up for success on your next investment property, here are three essential tips to streamline your pre-approval process.

1. Get Your Financial Documents in Order

Preparation is key when applying for an investor loan. Organizing your financial records ahead of time will make the pre-approval process smooth and efficient. Here’s what you’ll need:

• Tax Returns – We require your last two years of tax returns. If you and your spouse file separately (since Texas is a community property state), be sure to include both returns.
• Income Verification – Recent pay stubs (from the last two months) or, if you’re self-employed, equivalent proof of income like bank statements.
• Bank Statements – You’ll need to provide at least two months of bank statements. This is especially important if you’re self-employed.
• Retirement Accounts – Having an IRA, 401(k), or other retirement fund, will increase your likelihood of approval.
• Assets – Although you are not required to disclose your stocks, bonds, securities, or other assets, doing so will also increase you chances of pre-approval.

2. Credit Information

This “combination loan” starts as a hard money loan, but quickly converts to conventional loan mortgage. This conventional mortgage component requires that borrowers demonstrate a standard of creditworthiness. Generally speaking, this means a credit score of 670 or higher. There are a number of free tools out there that can help you stay on top of your creditworthiness. For viewing your credit score, report, and understanding what it means, consider using tools like Credit Karma.

3. Debt to Income Ratio

Finally, we look at your debt to income ratio (DTI). Reducing your DTI to 38% or less helps significantly increases your ability to secure a real estate investor loan. You can look at this in two ways:

Monthly Income x 0.38 = Max Monthly Debt Payments.

Or

Monthly Debt Payments / Monthly Income = Debt to Income (DTI)

Generally speaking, if you make $5000 a month, a 38% ratio means that you spend no more than $1900 a month towards paying current debts.

Ready to Invest? Apply Today!

Getting pre-approved is the first step toward securing your next investment. Whether you're interested in a hard money loan, conventional mortgage, or want to learn more about our Joe the Investor Program, we’re here to help.

Contact our office today by calling 713.680.8100, reaching out online, or submitting a free prequalification application. Let's unlock your next real estate deal together!