Are you a Residential Real Estate Investor? Read These Tips to Get Mortgage Financing for Your Property
New City Financial wants to share some insight with you today. The housing market is getting back on its feet after the huge blow during the financial crisis of 2008-2009. These days, the face of the game is very different from the days prior to the collapse. For a real estate investor, it can be difficult to expand their portfolio, since banks now ask for a lot of requisites before even thinking about doing business with them. Still, this is a good time to get involved in the sector. Interest rates are very low and there are new players venturing in the real estate sector that make financing a little easier than the established banks.
Here you have a few pointers that might be useful if you are an investor:
- Open your business by offering your best
While a lot of mortgage companies and independent loaners are out there willing to handle your business, a basic rule still applies to all of them: You need to make a down payment to put things in motion. The difference between making a good deal and a great one is on how much you can pay upfront. 20% is the standard, but offering 25% down payment will open the doors to a better interest rate. If your background as an investor matches your payments, you’ll get even more benefits: a FICO rating of 740 or higher will make you eligible for a steady interest rate.
- Forget about big banks
As stated earlier, national banks make investing real hard. It may still be the safest choice if you have the time to spare. But investors usually move quickly and need their money fast. There are a lot of alternatives to get financing out there these days. Online mortgage lenders and brokers are open for business, and they can set you up with the money you need in minutes as long as you meet their conditions.
- Think outside the box
If you have a quick business deal that you want to cash-in, you can always get creative with the way to get the money under legal means. You can secure renovation money using a home equity line of credit or your credit cards. You can even use life insurance. Getting a personal loan is also an option. But beware: A small business or a private citizen will always be more cautious with their money than a big company.