Usually, the home buyer will show the seller a pre-qualification letter from a lender, stating how much the lender is willing to offer, before the buyer makes an offer. If the buyer is pre-qualified, then the escrow period will be shorter. The seller should encourage the buyer to begin the loan processing as soon as possible, after the contract for sale has been accepted by both parties. And the Seller should contact their mortgage lender, to let them know that the escrow has begun on the home. APPLY NOW!

Once you have received a loan quote and you want to determine your homeownership costs, enter your property’s information into the Real Estate Proforma spreadsheet on the Home Page or request a custom proforma. Whether you are buying an investment property or your own home, run your numbers, and find out how much ownership will cost you.

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Before you buy an investment property it is critical that you create your own projection of the property's profitability. Real-Estate-Proforma.com has a quick-proforma with which you can calculate real estate financial statistics such as Internal Rate of Return, Capitalization Rate, Cash-on-Cash, Debt Multiplier, Loan-to -Value Ratio, Debt Coverage Ratio, and Mortgage Payments. You can use this JavaScript proforma to project the profitability of a real estate project. By becoming a member you will receive access to a number of Excel real estate proformas. membership | services

If you are analyzing another person's proforma, or you are examining a prospectus for a real estate deal, it is very important that you read the document carefully and determine how the values of the financial statistics above are being calculated. For instance, values such as the Cap Rate may be determined from overly optimistic projections of the future rental income of a property.

You can "reverse engineer" the financial projections you receive from a prospectus and/or request the Excel (or other type of) spreadsheet a developer used to create their proforma. A very useful Excel or Visual Basic macro used to check Excel formulas is available in the spreadsheet below for download. Download Mortgage Formula Excel Spreadsheet

The due-diligence you do on a potential investment may uncover a number of potential problems with a real estate deal and we suggest you research each real estate investment very carefully. There are a variety of real estate financial consultants who can help with this, but if you are like many Real-Estate-Proforma.com members, you can or are learning to do your own due-diligence.

We hope you become a more successful real estate investor by using this site! membership | services