Buy an Investment Property
Considering the purchase of a residential investment property?
We are ready to help as you plan to buy, when you purchase, and even after you own your investment property.
- Rental opportunity. If you purchase an investment property close to local businesses, a popular commuting area, or vacation spot, this may be attractive to tenants and could create cash flow.
- Ongoing income and cash flow. Your investment property may provide ongoing income to offset your expenses.
- Potential tax benefits. Mortgage and home equity interest payments and property taxes may present the opportunity for tax advantages. Consult your tax advisor.
- Flexible fee payment. Select the home equity closing cost option that meets your needs.1
Here are some items to consider, regardless of whether you purchase a single family home, townhome, condominium, or a multi-family dwelling.
Additional financial responsibilities
Different loan requirements
If you purchase a home that needs renovation, finance and renovate with ease
Keep in mind that by using the equity in your current home, your debt is associated with your home becomes the security for the new loan. Because investment properties carry a higher risk, you should consider this option carefully before making your decision.
- Our home equity financing allows you to select the closing cost option that meets your needs.1
- The interest on home-equity financing may be tax deductible. (Consult your tax advisor regarding the deductibility of interest.)
How much you repay is determined by several factors. Here are the terms you need to understand:
Learn more about establishing and improving your credit
- Do you pay your bills, loans, credit cards, and other debts on time?
- We examine your payment habits before deciding to loan you money.
- Your credit history and credit score are also examined prior to deciding to loan you money.
- It's a good idea to check your credit history and correct any problems before applying.
- Do you have enough funds for a down payment and closing costs?
- You may use funds from a savings account, certificate of deposit (CD), investments, and retirement fund.
- In some cases, you may be able to use gift funds toward closing costs and all or part of the down payment.
- In many cases you will also have to demonstrate that you have additional funds in your accounts to cover several months of mortgage, tax, and insurance payments.
- What is the market value of the property you want to purchase?
- We will order a property appraisal to make sure your property's value meets our underwriting requirements.
Responsible lending guidelines
We approve applications where we believe the borrower has the ability to repay the loan or line of credit according to its terms. We use two ratio-based guidelines to evaluate your ability to repay.
Even if you fall within the 28%/36% rules of thumb, make certain that you feel comfortable making your monthly mortgage, insurance and tax payments and the payments on all your other monthly obligations. Homes have other costs—such as utilities, maintenance and repairs—that may not exist if you rent.
Creating a financial plan
Estimating what you can spend
Setting a time frame
Buying an investment property?
Estimate how much you may be able to borrow.
Verification of this information, satisfying underwriting conditions, plus a satisfactory title search and appraisal are required for final loan approval.
Remember: Neither a preapproval nor a prequalification obligates you to borrow from Wells Fargo.
How can I benefit from a preapproval?
- You can identify and address possible qualification problems early in the homebuying process.
- Obtaining a PriorityBuyer® preapproval tells real estate agents and home sellers that you have been preapproved for a specific mortgage amount.3 Real estate agents and sellers increasingly rely on preapproval to identify serious offers.
- Provides an advantage over buyers who are not preapproved.
- Adds to your negotiating strength when you are ready to make an offer on a home.
- Lets you shop confidently because you know how much you may be able to borrow.
- May allow for a faster closing, since much of the loan work is already completed.
- Without a record of previous mortgage payments, a preapproval can help you feel much more confident pursuing your first home purchase.
- A preapproval shows the seller that a lender has already run the numbers and is willing to proceed with the mortgage.
How does the process work?
- If you're still in the early stages of house-hunting and want to know roughly about how much home you can buy, request a free mortgage prequalification.2
- If you're ready to move forward, line up your financing ahead of time with a PriorityBuyer® preapproval, which requires a credit check and a completed mortgage application.3
- Work with us online, over the phone, or in person with your local consultant.
View loan options now.
Needs and wants
Types of homes
Benefits of working with a REALTOR®
Not every real estate agent is a REALTOR® . What's the difference?
According to the NATIONAL ASSOCIATION of REALTORS®, the term REALTOR® identifies a real estate professional who is a member of the association, and who subscribes to its strict Code of Ethics. Some of the benefits of working with a REALTOR® include:
Professional assistance and representation
Making an Offer
Your REALTOR® can help you determine the appropriate amount for your initial offer based on comparable home sales, market value, condition of the home and your closing date.
When you make the offer, consider these tips:
Put your offer in writing
Have your preapproval for maximum leverage
Submit a deposit
Finalize your purchase contract
Wells Fargo's Learning & Planning Center can help you understand all the steps of the home financing process.
- Learn about your loan options. We'll help you find a mortgage that meets your needs from our wide array of mortgage products.
- Get ready to apply. Find out what information you'll need to provide when you apply for a mortgage.
- After your application is submitted. Learn how you can track your application status online.
Brent D. Miller
Home Mortgage Consultant
NMLSR ID 404017
Toll Free: 1-800-643-0528 Ext.8638
10900 NE 8TH ST Suite 1430
Bellevue, WA 98004
bank closing costs
Total the amount of your savings
- savings and money market accounts,
- stocks and bonds
- certificates of deposit
Closing cost option
Have us pay your closing costs
- You pay a higher interest rate to cover all required third party costs
- This option is not available for lot loans or financing greater than $500,000
- You pay a lower interest rate
- Pay with your loan proceeds, line of credit, or a check
For details, please call us.