Real estate has a solid reputation for being a sound investment, allowing many people to secure a healthy financial future. However, it takes quite a bit of research and a clear understanding of the market to ensure a good investment is being made. Whether you’re interested in becoming a landlord or a commercial investor, you’re likely to have a number of questions if it’s your first time going through the process. The mortgage loan experts at Premium Mortgage Corporation have assisted numerous clients in Buffalo, Rochester, and Syracuse, NY, and Barre, VT, with getting the financing they need to complete a successful investment deal. Below, they provide helpful answers to some of the most commonly asked questions about buying an investment property.
Mortgage Loan Experts Answer 4 FAQs About Buying an Investment Property
1. How Do I Get Started in Real Estate Investing?
First, establish your budget and determine how much you need to borrow. This will give you an idea of what price range to look in and help ensure you don’t spend more than you can afford. Since location is key for any property purchase, it’s also important to gather all the information you can about different neighborhoods.
2. What Is the Difference Between an Investment Loan & Home Loan?
In general, lenders often view investment mortgage loans as a greater risk than traditional home loans. As a result, this may lead to higher rates and require a bigger down payment. In addition, it’s normal for lenders to require an investor to have a certain amount of money in reserve to qualify for a mortgage. There are also significant differences when it comes to tax benefits.
3. What Are the Costs of Ownership for an Investment Property?
Aside from mortgage payments, there are several costs associated with owning an investment property. Expenses you will need to consider and factor into your budget include insurance, maintenance, repairs, property taxes, utilities, loss of income from vacancies, marketing, and property management. Building inspections, stamp duty, and legal fees are additional costs to account for.
If you’re new to real estate investing, it’s always a good idea to speak with a mortgage loan professional about your goals. Contact Premium Mortgage Corporation at (844) 793-0177, or visit their website for more tips and information.
Corporate Contact information:
2541 Monroe Avenue,
Rochester, NY 14618
NMLS #3254 Equal Housing Lender
Licensed Mortgage Banker NYSDFS