Question by J.: If I just refinanced my home mortgage, can I finance a new investment property soon after?
I just refinanced my home last month and got a much lower rate and payment. Of course, this means my mortgage was paid off and a new loan was initiated. Does this affect my credit in a way that would hamper me being approved for a mortgage on a new investment property?
Answer by teebone35
Yes it could. Basically the bank is going to review your credit with the house that you just bought taken into consideration. The banks may ask you for a bigger % as a down payment because it is considered an investment property. If you have everything lined up and your debt to income ratio is where it needs to be then you should be fine in buying another home. If you dont have the $ for your down payment or if your past your ratio then the bank will see that your too much of a risk to lend for a second home.
Add your own answer in the comments!