Is there a standard qualification formula lenders go by for mortgages?

We currently have a mortgage and I'm trying to figure out if we'd be able to qualify for another (for an investment property to flip) with our current income. We aren't ready to actually apply for the loan yet, I just need to find out if we even could. How can I figure this out? What are the formulas or qualification standards lenders use?? Thanks.Is there a standard qualification formula lenders go by for mortgages?
Flipping properties and securing a loan to accomplish this might not be a very good idea. The loan application process is much too long for a person flipping properties.





Yes banks ans lenders use several formulas to determine your qualifications to purchase a property. In most loan application and eventually the loan approval you have a 2 year pre-payment penalty. This alone would not help in your aspiration at flipping properties.





There are several things you need to know when investing in real estate or buying foreclosures, probates and other distressed properties for flipping.





First of all you should go to the nearest book store, purchase several books on buying, fixing and flipping foreclosed, short sales and other distressed properties and real estate investing. There are several that you might be interested in.





You will also want to find out if your state is a non-judicial or judicial foreclosure state. This will assist you in making offers as well time frames in which you have to work within when purchasing a foreclosed property.





Once, or, while you are doing this you should buy one of the TV guru's distressed property programs. These programs will give you some legal forms you might use when writing an offer to purchase a property. You will also find several scripts to use in talking to your potential clients. The also give you tips and a formula on how to figure if you have a property that you can make money from before buying.





If you are without funds to accomplish this business, you will have to find some investors that will assist you. You will have to make a deal with them about a certain percentage of the profits made from the sale of the property. You will have to advertise in your local newspaper for these type individuals to assist you in buying and flipping.





Another method to use when you are without funds to assist you in buying investment property is to get the deal under contract in your name after which you wholesale the deal to another investor and let them do the fix up and repairs. You can collect anywhere between $5,000.00 to $10,000.00. In high cost property states you might even get more for wholesaling properties.





Normally this is 50/50 however it could be more or less depending on how your relationship is with the investor.





Now to purchase a foreclosed property depends on what phase the foreclosure is in.





#1 Pre-foreclose- the owner is still in the home, he has been notified that he is in foreclosure. Now he has to come current or the foreclosure will continue.





You can make an offer to the owner at this point, give him something in his hand to purchase his equity. Now you will also want to see if there is any repairs that need to be done on the property. If there is you need to know the cost of this repair. You will need to know how many months he is behind in his mortgage payments as well as any fees that the lender has incurred in trying to collect the mortgage payment. Now add these together to include what you had to give the homeowner. Also you must include how much you will need to hold the property, I mean making the mortgage, paying the insurance and taxes while you repair the house for sale.





Now find out the balance of the mortgage add this to the above figure. Now you need a method of finding out the current value of the property. All this information will tell you if you have a deal or not.





#2 The other way to purchase a foreclosure is when the property goes to sale. At this point you must have all cash and you must be able to prove that you have whatever the minimum bid is in cash, cashier鈥檚 check or money orders. If you have no proof you will not be allowed to bid.





#3 One last way is after the sale. If no one bid and get the property at the foreclosure sale, you may find out what bank owns the property, write an offer as well as a check as a deposit not to be cashed until the offer has been accepted. You might also inform them as to how and when you plan to come up with the remainder of the sales price. I have know some lenders to accept offers this way before the property is turned over to a real estate broker to sell.





Now you have to determine how you are gonna market yourself to get.





#1 You can purchase a pre-foreclosure list from a list broker (Join the crowd most do this and mail letters to the person that is in foreclosure)





#2 You can advertise in your local paper that you are in the business of purchasing foreclosures.





#3 You can do a direct mail to people in your city stating that you are now in the foreclosure business.





#4 You can do the research at the county recorders office yourself (time consuming and tedious-but workable. You should get enough leads for a least one days work.)





#5 You can select an area of your city that you want to work and target your that area with your energy. You can walk the area pass out fliers that you are now in the business of buying property distresseIs there a standard qualification formula lenders go by for mortgages?
Investment loans are very hard to get these days. Best bet is to call a mortgage company %26amp; give them your details. You must have extremely high credit scores (over 740) and you will probably need at least 20% down.
The truth of the matter is that mortgage related issues can be very complicated and sometimes confusing. So, you are not alone with your question.