There are many things to consider when investing in real estate. A pre-approval is always advisable when bidding on properties. With many foreclosure deals, it is impossible to make an offer without a guarantee of financing.
The first thing I do when searching for the best investment property finance rates is to check my credit score. Then I get quotes from several different lenders. A little extra time shopping around can help save thousands of dollars. With great credit and a large down payment, lenders will be more likely to give the best investment property finance rates. investasi
Lenders will want to see solid proof that the down payment belongs to you. To show that it is not borrowed money, it will need to be in the bank for several months prior to applying. Banks will want to see proof of your income from employment, as well as how much the property will increase your income. Rental properties with tenants already in place, are usually easier to secure loans on than vacant properties.
I would not want to see anyone getting into trouble by purchasing an investment property that they cannot afford to pay for on their own. Even if you expect to rent the property out, there is always a chance that you may end up paying the loan out of your own pocket. Things do not always go as planned. You should never borrow more than 30% of your personal income, regardless of how much you think the property will increase your bottom line.Since mortgage rates are at a historical low right now, most long term investors go with fixed-rate mortgages.If you are planning to buy a property with the intent to flip it quickly, you may consider an adjustable mortgage. Often the rates are lower than what you can secure with a fixed-rate, but they are subject to change. With a balloon mortgage, the payments will be low, but you will have to pay off the loan in a shorter amount of time. There is a higher risk with both balloon and adjustable mortgages.