Real estate investment has become very popular in the last few years. With all kinds of “no money down” real estate courses being sold on infomercials and in every home business or investing publication that exists, people have rushed to buy properties for investment purposes. Unfortunately, many of these people are not interest rate savvy and are doing themselves a disservice by not refinancing some of their investment property mortgage loans.
Keep a tight leash on contractors. They’ll play you like a yo-yo, which can – and probably will – be one of your biggest learning experiences in The School of Hard Knocks. But hey, don’t worry; I graduated from that same school top of my class, and I survived.
“Well the doctor is in! First, you are absolutely correct in your take on the situation. This investment philosophy is being heavily promoted by some ‘wealth management’ strategists because of the commissions it generates. The only thing that surprises me is that Mr. Zealous was only suggesting you take out $100k (why not more?) and that he isn’t suggesting you put it into an equity-indexed annuity or equity-indexed life insurance!
He asserts that we have made a mistake in paying the fully amortized principal and interest option payment each month. Instead, he says we should only make the minimum payment despite the fact that this results in negative amortization. [Negative amortization means the amount owed increases each month!] He says that making the minimum payment each month and taking out the $100,000 to invest is a smart move because we will ‘create wealth’.
If you’re not bleeding, they shouldn’t be applying pressure. A Best Mortgage Broker Brisbane who pressures you into anything you are not comfortable with probably failed ethics. No reputable broker will pressure you into anything you don’t feel comfortable with.
The first step is the motivation for selling. It is important to know what drives you to sell your property. Know the reason why you want to sell the property. Once you enter the real estate investment the reason for selling is always there. And of course, one of the main reasons is earning money, right? And the second is the personal reasons depending upon your situation. But if you are not well motivated in selling, you will just put yourself up for frustration.
A pre-approval loan is a more in-depth process and entails a lot of paperwork. Your real estate agent can assist you with the preparation of these requirements. The lender will study and assess your financial status basing from documents such as your bank statements, tax records, and credit accounts, among others. This is more dependable compared to getting pre-qualified since being pre-approved means that a certain lender sees you as someone trustworthy to deal and transact with.
If you are ready to finally purchase your dream home, look to a mortgage professional to help you comparison shop. I suggest you go online and search for mortgage brokers in your local area. There are numerous sites that actually do the shopping for you which will end up saving you a lot of time and phone calls. They can also help you find the lowest rates and fees for your home mortgage needs. The right home loan is just one step out of the home buying process that you will not have to be concerned about.