"Tips To Look For Home Financing"

Here are a few tips on finding money to finance your next property.

Banks and lenders

You can borrow money from banks and lenders for all your property purchases (1 to 5 units), which is considered residential lending. For larger building and commercial properties you will need to find a commercial lender for all your financing. They will lend you up to 100% depending on many factors depending if you provide documentation on your income or not, your credit score, if it is your primary residence or not and other factors.

Partners

If you cannot purchase by yourself you may always find a partner willing to invest. If you find a partner willing to invest 50% and you are both willing to manage the property, then you may be able both entitled to 50% of the income produced by the property and the appreciation.

Friends and Family

When it comes to family just be always careful as it is business related and it is never easy to do business with a family member.

Seller

It is quite common to have a seller finance 5% to 20% or the purchase price so he can sell his property. The seller will carry a second mortgage for a few years. You can expect low borrowing costs but the seller may insist on a higher price for his willingness to accommodate you on the financing.

Private Money or hard Money Lenders

This maybe the last resort as private financing usually carry high interest rates such as 10 to 18%, high fee such as 4 to 6 points upfront, and they may have a 2, 3 years pre-payment penalty. These loans are usually approved within days and can be funded within 2 weeks. Hard money lenders usually require a maximum of 65% LTV.

Andre Plessis

Andre Plessis
"The Mortgage Guru"
"A Mortgage Professional whose primary goal is to provide the expertise, guidance and skills necessary to obtain the best mortgage to meet your personal needs".
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P.S. If you are at all intimidated or unsure about the mortgage process if you don’t understand how to evaluate your options in getting a mortgage loan our 24 key questions will help you feel comfortable that you are making the best decisions. Also if you are in the process of refinancing your home with anyone, CALL ME and I will let you know if you are being offered the best loan option based on market conditions and your financial situation.

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