Hi Money Minder,
So, here’s the deal – I’m a 19-year-old who’s all about diving into the world of REI. I’m pulling in around 90k a year, and got a couple loans and a few credit cards that I handle like a pro – always paying off the full balance every month.
My truck is $13.5k with a $400 monthly payment, and my ATV runs about $8.5k with a $370 monthly payment.
I’ve got 30k stashed away and keep stacking cash every week. My big question is, could a bank actually hook me up with an IPL considering my age and credit history? What steps do I need to take to get myself ready? Should I focus on knocking out one of my loans? Shoot me some advice!
Farewell, Adventure Seeker
Response from THE MONEY MINDER:
Hello There,
Congratulations on your enthusiasm for getting into real estate investing at such a young age! It’s great to see your drive and determination.
Based on your financial situation, it’s clear that you are already taking responsible steps with your credit cards by paying off the balance in full every month. This is a positive sign for lenders as it shows financial responsibility. With your annual income of around 90k and having 30k saved up, you are in a good position to consider applying for an investment property loan (IPL).
Your concerns about your age and credit age are valid, but remember that lenders take into account various factors when assessing loan applications. One step you can take to prepare yourself is to demonstrate a consistent track record of managing your finances responsibly. This includes continuing to pay off your credit cards in full, saving consistently, and possibly paying off one of your existing loans to reduce debt-to-income ratio.
It’s worth considering speaking with a financial advisor or mortgage lender to discuss your specific situation and explore loan options that may be available to you. They can provide personalized advice based on your financial goals and help you navigate the loan application process.
Remember, patience and proactive financial management are key when preparing for real estate investing. Keep saving, continue building your credit history, and explore opportunities to increase your financial stability. All the best from THE MONEY MINDER as you pursue your goals in real estate investing!
