Some Financing Options for Your Property Investment

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03/19/2007
Topic: Rental Property Investment Strategies

As a property investor, you will find you are faced with several choices when it comes to your financing strategy. You can apply for a mortgage from a bank, a savings and loan, a credit union or a mortgage company. Each lending institution will offer its own terms for a loan and will offer a fluctuating interest rates. The most efficient way to shop for a mortgage - and the surest way to get the best terms – is to work with mortgage brokers.

Brokers are independent agents who make money finding a lender for a buyer. They will look at dozens of lenders to find you the right deal. If you have bad credit, a mortgage broker may be able to find a lender who will accept you.

Ask you real estate agent or another trusted source to recommend a broker – but try to find two or three. That way you are guaranteed to find the best deal for you. You can find a mortgage broker in you local Yellow Pages or through an online search.
Once a broker finds a good mortgage for you, with a low interest rate and not or few points, start negotiating. Nothing is set in stone, so ask the broker if that interest rate is the lowest it can be. Ask to reduce any points they propose.

Select more that one possible lender from the choices your brokers bring you and play them against each other: Tell them the lowest rate you were offered and ask them if they can do better than that. Use your good credit history, longevity at you job or sizable assets as leverage in negotiating. Talk to whatever your strongest selling point is. In the end, they want your business, and they will make a profit. The key is to ensure you do not over-pay for your mortgage. You will know when they cannot go any lower.

if you are looking for a loan broker call me. i have a few for you to contact.

Herm. 949 742 0915