"...be sure not to enter the Investment Property arena blindfolded..."
Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of expense.
Get the Right Information - Whether you are about to make your first investment or are a seasoned veteran, it is critical that you be informed about the factors involved.
Everyday people are considering purchasing an Investment Property and making some quick money. Don't be fooled. Surely you would agree that investment decisions shouldn't be taken lightly, and an Investment Property purchase is no different. By taking these few minutes to acquaint yourself with the "5 Deadly Mistakes Most Investment Property Buyers Make" you can greatly increase your chances of making your investment successful and save thousands on your mortgage.
- Not Making a Profit From Day One
Make sure your interest rate will allow for a positive cash flow when you rent the property. While you will hopefully make equity over time, cash flow is often a make or break consideration.
- Choose the Right Amount For Your Down Payment
Twenty percent is the minimum amount required for a down payment for an investment property but you’re allowed to put more down if your able. Be aware that the down payment amount will usually influence your interest rate, and interest rate will determine your properties cash flow.
- Not All Mortgage Brokers Are Created Equally
Be sure to ask your mortgage broker about available loan products, terms and rates, and when comparing brokers, be sure you compare 'apples to apples'. A subtle difference could save or cost you thousands.
- Your Real Estate Agent is Unlikely to Understand the Process and Unique Needs of an Investor
Your mortgage broker and real estate agent need to work in concert for the best possible outcome. Only hire a real estate agent with investment property experience.
- Not Understanding the Purpose of Your Investment
Do you plan to “fix and flip”, rent, or sell the property to another investor? This is a big question in selecting the best mortgage product to meet your needs. Make sure you have considered this carefully and discussed all your options fully with your mortgage lender. Subtle differences in your loan could cost or save you thousands.
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