Entries by Jeff Boulton

How to Buy a House with Low Down in St. George

Do you think it is impossible buying a home without a 20% down payment?  Maybe not, if you understand the lending industry well. Certain mortgages and home buying programs allow home buying with a low down payment or no down payment at all.  Therefore, with as low as 3% down or less, you can become a happy homeowner.

A no down payment mortgage allows first time home buyers and experienced home buyers to purchase a property with no money required at closing except the standard closing costs.  In this post, we feature important options allowing you to buy a home with a low down payment or zero percent down.

Let us start with the low down payment options:

1. The FHA Loans (Low Down Payment at 3.5% Down Payment)

The Federal Housing Administration (FHA), introduced FHA insured loans, available to qualified individuals through mortgage lenders. The FHA low down payment mortgage intends to help the low and moderate-income earners, who would otherwise be locked out of the housing market.

Thus, with a 3.5% down payment and at least a 580 credit score, you can borrow the low down payment mortgage by FHA. However, the drawback is that you need to pay an upfront mortgage insurance premium of 1.75% of the loan amount. In addition, a monthly mortgage insurance premium is included in the mortgage repayments. This could range from 0.45% to 1.05% of the loan amount per year.

Why choose the FHA home loan? Here are some of the reasons you may need to consider the FHA backed home loan with a low down payment.

  • Comes with a low down payment of just 3.5% down
  • Features flexible qualification guidelines
  • A debt-to-income ratio as high as 55%
  • Requires upfront and monthly mortgage insurance premium
  • Enjoy a no cost and no qualifying streamline refinance

Apply for The FHA Home loan today.

2. The VA Loan –No Down Payment Mortgage

The U.S. Department of Veteran Affairs offers zero down payment home buying loans to the members of the U.S. military and the surviving spouses.

The VA guarantees these loans and avails them through various lenders. Thus, if you are an active or a retired military officer, or a surviving spouse, with the VA zero down payment mortgage, you can buy a home.

The VA home loans do not have a minimum credit score, but the VA mortgage lenders may require that you raise at least a 580 credit score. As illustrated, the zero down payment home loan comes with flexible credit terms, with phenomenal interest rates compared to other home loans. Unlike the FHA home loan, borrowers do not have to pay a monthly mortgage insurance premium. The VA loan also comes with two refinancing options.

Here is a summary of some of what you need to know regarding the VA home loan:

  • It is a zero down payment home mortgage
  • Borrowers pay the VA upfront funding fees but there is no monthly mortgage insurance
  • It is available to the eligible veterans only
  • Enjoy “no-cost” and “no qualifying” streamline refinance
  • Available for 30-years fixed rate

If you intend to apply for this zero down payment mortgage, note that the VA home loan is subjected to the VA eligibility rules

3. The USDA Home Loan- No Down payment home buying mortgage

Available through the U.S Department of Agriculture, the USDA home loan offers up to 100% financing to eligible homebuyers. The USDA home loan program is formally known as the Section 502 mortgage although most lenders call it the Rural Housing Loan.

The USDA rural housing loan is available to the homebuyers eyeing the suburban neighborhoods and aims at reaching the low-to-moderate income homebuyers. With the USDA rural housing program, the borrower may include eligible home repairs and home improvements in the loan amount. In addition, there is a maximum home purchase price while the guarantee fee is added to the loan balance at closing. The USDA home loan carries a lower interest rate compared to a conventional home loan.

Here are some of the advantages of the USDA no down payment home mortgage

  • Comes with a low monthly mortgage insurance
  • Available for 30 years at a fixed rate
  • Allows buying of properties within eligible rural areas
  • Comes with flexible qualification guidelines
  • Enjoy financing of up to 103.5% of the appraisal value

The USDA home loan requires an up-front guarantee premium while the monthly mortgage insurance premium is low. Note that the maximum income limits will vary by country.

Key Takeaway

With millions of Americans facing financial burdens that include student loans and high unemployment rates after the Coronavirus pandemic, raising a 20% down payment can be daunting. The good news is that buying a house in St. George is still possible. This is through taking advantage of the no down payment or the low down payment home mortgage.

Buying Vs Renting a House – Which is More Profitable for First-time Owners?

Housing is one of the important decisions we have to make in life. For a majority of first time owners, home rentals vs. buying a home are the popular decisions to make. Buying vs. renting a home, which of the two offers more benefits to first-time homeowners? To answer this question, it is necessary we evaluate the pros and cons associated with either of the two.

Home Ownership

Owning a home is one of the biggest financial decisions in life. For millions of Americans, homeownership is a dream come true. Here are some of the benefits you will enjoy if you choose to buy a home.

  • A House is a Long-Term Investment

Buying a home translates to investing in an asset for yourself rather than for the rentals proprietor or the property management company. Ideally, even where the value of the structure may depreciate over time, the value of the land in which the property sits will appreciate. In that regard, owning a home is considered a better investment.

  • Home Ownership Creates a Chance to Build Equity

The chance to build equity is one of the significant benefits of choosing homeownership as opposed to home rentals. Ideally, equity from owning a home is the difference between the market value of your property and the mortgage balance. Therefore, if your property is increasing in value, your equity keeps growing. This is the reason why many Americans consider homeownership to be the best approach for increasing their net worth.

  • Homebuyers Enjoy Federal Tax Benefits

Did you know that mortgage interest is deductible from your federal tax due? This is by the virtue that mortgage interest is classified under the same class as home equity loans, property taxes, and closing costs when buying a house. Therefore, the first time homebuyers who itemize tax deductions can reduce their taxable income by deducting the interest that they pay on the home mortgage. On the other side, home rentals do not provide a comparable opportunity.

  • Homeownership Means Greater Freedom

Homeowners get a chance to renovate the property to their liking. This is unlike renting a home where you cannot make any additions to the house.

However, the benefits of owning a home do not come without costs. Here are some limitations you will have to cope with if you choose to buy a home.

  • Involves a High Upfront cost

Compared to renting a home, buying a home requires a high upfront cost in the form of closing costs, down payment, and numerous fees associated with mortgage processing. Recovering these costs can take many years, and this is often seen as the main barrier to owning a home.

  • Comes with Less Mobility

For homeowners, moving from one city to another is not as easy, as it is for those who prefer to stick into rent cycles. Thus, in case of a more attractive job offering, it is not easy for the homeowners to pack and leave.

  • Property Maintenance

Homeowners have to pay for property maintenance, unlike renting a home where property maintenance is the responsibility of the property owner. For renters, all they need to do is writing to the property owner or the property maintenance company so that they can have the issues fixed.

  • There is no Guarantee Property Value Will Keep Rising

In 2008, the nationwide housing crisis caused the value of properties to fall. This was a big loss for homeowners looking to sell their properties. the structure will depreciate over time, especially where you are struggling to pay for its maintenance.

Therefore, if you are intending to purchase a home, you are informed of the pros and the cons to expect. However, homeownership is not for everybody. Some people will prefer paying monthly rent as opposed to purchasing a home. Here are some advantages that come with home rentals.

  • Low Initial Cost

Compared to buying a home, rentals require a lower initial cost. This is in the form of a property deposit and the cost of moving. The initial cost is lower, compared to closing costs and paying a property down payment.

  • Property Maintenance is Not a Tenant’s Responsibility

The tenant will not have to make any arrangements to have the property repaired. The property management company will handle the responsibility on behalf of the tenants.

  • Monthly Rent May be Lower

The monthly rent is lower compared to mortgage repayments. Thus, if you cannot afford mortgage repayments right now, renting a home is the cheaper alternative.

Here are some limitations of renting a home.

  • You Cannot Renovate the Property

To make any changes to the property, you have to seek the approval of your landlord. Even where you speak to the property owner regarding renovations, he or she may put some restrictions on how far you may go.

  • You Aren’t Building Equity

You are paying monthly rent cycles, but this does not translate into building equity. All you are doing is repaying someone’s mortgage and facilitating their equity building.

Comparatively, purchasing a home is a better decision if you are looking to build equity, seeking to have a permanent address, and you want to make a long-term investment.

The Big Difference Between Home Rental Values and Sale Values…and Why It Matters

When investing in real estate, the investor must evaluate the options to earn a decent profit. For instance, one has to choose between renting the property and selling it. Thus, you may want to know how rental value compares to the sale value. In this post, we want to look at the property rental value vs. sale value. By looking at the pros and cons of the two, you can make a wise decision. Keep reading to discover how home rental value and sale value relate to each other.

Home Rental Value

By definition, home rental value refers to the fair market value of the property is rented out in a lease. Ideally, the rental value maybe the consideration that is paid under the lease for the right to occupy or the return that is received by the property owner under the tenancy agreement.

The home rental value does not just refer to the total value or the highest price you can list the property at. Remember that overpricing the rental property with an intention of earning maximum as the rental value could result in issues as tenants complain about hiked rental prices.

By renting a property, the property owner earns from the monthly rent cycles. Thus, the rental incomes become the annual cash flows and so the fundamental basis for determining the overall home rental value.

Property Sale Value

For the home sale value, this refers to the amount earned from selling the property to a willing buyer. Ideally, the sale value is based on what the market, or the buyer, is willing to pay for the property.

To answer your question on how the home rental value relates to the home sale value, we can say that the rent value, the property owner earns from the monthly rent cycles. For the sale value, you get a once-off payment from the value that the buyer agrees to pay for the property.

Now that we understand how home rental value compares to the home sale value, let us now look at the factors that determine the home rental value and the factors that determine the home sale value. Keep reading to discover.

What Determines the Home Rental Value?

1. Net Property Worth

Often than not, property appraisers use the overall property worth to calculate the base rent value. The approach is especially useful when renting out a property that you have been living on, as you need to know the true face value of your home. Thus, it is recommended that before getting into the home rentals business, you seek assistance from the property appraisers who should be able to calculate the property worth, to guide you when calculating home rent value.

2. The Local Rent

How much do most landlords in your locality charge as rent? While comparing the rent amounts charged by the other property owners, it is important you ensure that you are comparing properties that are similar to yours. Thus, if you are renting out a single-family apartment, you cannot compare it to a studio. This is the worst mistake made by property owners.

3. Consider Demand

Despite the property worth and local rent, the home rental value will change depending on the current demand. If the demand is high, then the rental value will increase, and vice versa.

What Determines the Home Sale Value?

1. Using the online valuation tools

There are dozens of property valuation tools available online. Ideally, the home value estimators will request that you key in different variables that are used for calculating the house worth. However, if you choose using the online valuation tools, it is advisable that you go for the professional-grade property valuation tools.

2. Comparative Market analysis

The comparative market analysis is what has long been used for calculating the property sale value. However, the method is not as detailed as using online cost calculation tools. Make sure you involve an experienced agent, to get a comprehensive list that you can use for the comparisons.

3. Using the Federal Housing Financing Agency

 The Federal Housing Financing Agency uses a more scientific approach for calculating the property sale value. This method uses the repeat sale method to estimate the property value within a given market.

We have covered the essential aspects you need to know when it comes to home rental value vs sale value. thus when making important investment decisions, you will have a clue of what either of the two options holds.

Essential Tips on Buying a House with a Low Down Payment in St. George Utah

Buying a house in St. George Utah involves a huge financial commitment. Thus, many people are left to borrow a mortgage in order to finance their homeownership dream. To qualify for a conventional home loan, you have to raise the 20% down payment, raise closing costs, and have a high credit score. For first-time buyers, paying the down payment and closing costs can be overwhelming. Thus, regardless of having a good credit score, many people are still locked out from homeownership.

Are you struggling to raise enough down payments to qualify for a home mortgage? Do you know that you can easily buy a house in St George with a low down payment or even no down payment? In this post, we share important tips to help homebuyers into homeownership even with low or no down payment.

1. Explore Available Mortgage Options

There are several mortgage options available today. Each has its own set of pros and cons. For first time buyers looking to buying a house in St. George with a low down payment, talk to a mortgage broker to help you understand available options. Thus, you may want to consider the following options:

  • The Conventional Mortgages with Low down payment

First-time homebuyers with the required credit score can get a conventional mortgage with a low down payment. This is often as low as 3% depending on personal situation and lenders terms. In addition, the property you are purchasing will inform the mortgage lenders whether to consider the borrower for a conventional home loan with a low credit score.

However, bear in mind that paying less than 20% on the conventional home loan may require payment of the private mortgage insurance. Private mortgage insurance is what protects the mortgage lender in case you default on a mortgage. Note that private mortgage insurance is normally paid as part of the monthly mortgage repayments.

The other requirements to qualify for a conventional home loan with low down payment include a high credit score, a debt-to-income ratio of not more than 50%, and a loan amount that must fall within the set limits.

  • The FHA Home Loan

The Federal Housing Administration issues mortgages to borrowers who can raise a 3.5% down payment. Thus, the FHA home loan is considered a low down payment mortgage. To qualify for the FHA backed loan, you need a credit score of 580 or above. If your credit score falls between 500 and 579, you can still borrow this low down payment mortgage. However, you have to raise up to 10% down payment.

  • The VA Home Loan

Guaranteed by the Department of Veteran Affairs, The VA home loan requires no down payment. The VA home loan assists applicants to build, buy, or improve a home, or even to refinance the current home loan. The VA home loan is available to active servicemen or women and their surviving spouses. However, the applicants should meet the credit score requirements.

  • USDA Home Loan

This is a zero down payment home loan for rural and suburban buyers. Ideally, the mortgage option is suitable for the borrowers who are not wealthy and cannot qualify for the traditional mortgage. To qualify for the USDA home loan, you ought to have a dependable income and provide proof that you will keep to date with the mortgage repayments.

2. Consider the State or Local Homebuying Assistance Programs

In addition to the federally backed home buying programs, the state of Utah offers some assistance programs suitable for homebuyers who cannot raise a 20% down payment. The State-backed home buying programs are suitable for buyers with limited income but have a decent credit score.

Borrowers can apply through the statewide network of the participating lenders. Contact your mortgage lender to find out the available programs. However, be aware that the state-backed programs put restrictions on income, property purchase price, and the home location.

3. Compare the Mortgage Lenders Requirements

Shopping for mortgage lenders is always recommended. You will find that mortgage lenders will have varying requirements to be met by the mortgage borrowers. In that regard, check their requirements in terms of mortgage down payment. The idea is to choose a mortgage lender who is willing to lend at favorable terms that include a low down payment. However, bear in mind that the mortgage lenders might introduce a high mortgage interest rate in order to accommodate the low down payment requirements.

4. Stick To Your Budget

The down payment amount will also depend on the value of the property you are purchasing. The higher the property value, the higher the down payment that you will have to make. Therefore, you may consider revising the amount you intend to spend on buying a house in St. George, just to be sure you pay a lower down payment.

Key Takeaway

Now, you know the options to pursue in order to afford a house in St. George Utah with a low down payment. Talk to your mortgage lender for different options.

Should You Rent or Buy a Home? Find Out Which is Better For You

Renting vs. buying a home is a debate that we often find ourselves engaging in. While whether to rent or buy a home depends on some prevailing conditions, it is important you evaluate the two sides before reaching a decision. The reality is that home rentals and home buying come with advantages and disadvantages. In this post, we are going to evaluate what it means to rent or to buy a home. Let us start with home rentals.

Home Rentals

Home renting has continued to gain popularity across the US. For a majority of people moving to urban centers in search of job opportunities or better healthcare, renting is usually the first thing in their mind.

Consider that in the case of a jobseeker, most of these persons are fresh graduates from the universities or colleges, and so they do not have enough savings to afford the cost of buying a new home. 

Home rentals come with various advantages.  In the following section, we evaluate the advantages of renting a home:

1. Greater Flexibility

Renting a property provides the renters greater flexibility. Consider that one can adjust the size of the house according to the current conditions, and this does not involve too much hassle. In addition, with home renting, you can relocate easily without having to worry about selling a property or financing the process of buying a new home.

2. Does not Involve Lump sum Investment

To rent a home, you just need the monthly rent and security deposit. The other costs are often negligible and could include the cost of transport, the cost of searching for a rental home, and other minor costs. The lower costs make renting the first option for a majority of people moving to the cities in search of a job. Consider most of them may not have enough savings to afford a new home.

3. Down payment Can be Invested elsewhere

In some instances, one has enough money to pay for the down payment. However, they still cannot qualify for home buying mortgage, simply because they lack a credit history. Under such a circumstance, you may opt to use the amount in some other projects, establish good credit so that you can purchase a property when you qualify for a mortgage and can afford the repayments.

4. The landlord is Liable for Property Maintenance Cost and Repairs

The cost of maintaining a property could be hectic for some people, hence prefer renting to buying a property.

There are shortcomings associated with home rentals. Consider that when renting a property, you do not own the property; you are just entitled to live in the house for the short lease period. Thus, you are paying someone else’s mortgage.

Home Buying

Buying a home could be by borrowing a mortgage, or paying cash from your savings. Regardless of the approach, if you have paid the full amount, you become the new property owner.

Here are the advantages of Homeownership

1. Builds Asset base

Buying a property comes with entitlement rights! After you have paid the down payment and you have the ownership title in your name, you can count the property while counting your other assets. This is unlike when you choose to rent a home.

2. Comes with Sense of Belonging

For a family, nothing feels comfortable than a sense of belonging. When you have finally paid the full amount on a property and it is in your name, your family feels proud and increases the stability. However, living in a rental home comes with uncertainty as you do not know what the proprietor wants to do with the property at a later date.

3. Enjoy Tax Benefits

Mortgage borrowers enjoy interest deduction. This is often one of the biggest incentives given by the government to promote homeownership. Other benefits could include waivers to cover mortgage insurance premiums, or real estate taxes.

4. Emotional Benefits

Home buying also comes with emotional benefits. Consider that most people believe that buying a home has changed their emotional well being for the better. For a majority of first-time homebuyers, they say they cannot wish to go back to home rentals.

Therefore, buying a home could be considered a better decision than renting a property. However, this depends on what you consider. We can say that buying a home comes with huge financial commitments at the start. This includes paying a down payment, the costs of processing a mortgage, and mortgage insurance. Other costs associated with homeownership include home insurance, the cost of property maintenance, residents association fee, and other costs. The renters are exempted from such costs. 

However, while renting a home could mean fewer costs, in the end, you cannot recover the amount you have paid as rent. This is the reason why homeownership is considered the American dream.  

No, You Don’t Have to Make Tons of Money to Buy a House in Utah

Buying a house remains a major milestone in one’s lifetime.  However, the reality is that more U.S. households live in rental homes. The reason we have more renters than homeowners could be a lack of information, while others consider that their current income is too low to finance the dream of building or buying a new home.

It is common knowledge that buying a home takes a huge financial commitment. Nevertheless, the question remains, how much do you need to make to buy a house?

For us to answer this question, we need to understand the costs associated with purchasing a house.

Understand the Homebuying Costs

When it comes to purchasing a property, a majority of new home buyers think that the total cost of property ownership is the amount asked by the home seller. However, the reality is that there are several costs other than the amount asked by the home seller. Here is an overview of the costs of buying a house.

  • The Down payment: when buying a house, one of the biggest expenses from the onset is your property down payment. Regardless of the amount you are earning, you should start saving for the down payment earliest possible. A majority of mortgage lenders will require up to 20% down payment. However, some home-buying programs require zero down payment, while others will require a low down payment, as low as 3.5%.
  • Lender Based Costs: When you apply for a mortgage, the lender will apply different charges payable by the borrower. For instance, you may be required to pay an origination fee, mortgage underwriting fee, appraisal fee, and a host of other charges. Make sure you have a clear understanding of what these costs will be before choosing the mortgage lender. The reality is that some mortgage lenders will waive some of these costs, while others charge different rates.
  • Transfer of Ownership Fee: This is one of the often, overlooked fees when purchasing a property. You will see charges for the title search, title settlement, and title transfer fees.
  • Private Mortgage Insurance: depending on the mortgage type, the borrower might be required to purchase the mortgage insurance. Mortgage insurance is a requirement on all the FHA and USDA loans.
  • Mortgage Interest: An obvious cost is an interest paid on the mortgage you have borrowed. The interest rate depends on different factors. However, the obvious is the credit score. You will find that buying a house with bad credit attracts a high-interest rate, compared to interest rates charged to a borrower with a solid credit score.

Understanding the above costs will help in estimating how much you need to buy a home in Utah. The beauty is that there are important tips to help in keeping the costs associated with buying a house at the lowest margins. So, how can you buy a property at cheaper rates?

1. Work on your Credit Score

Before you think of filling the mortgage application form, the first thing to do should be checking your current credit score. The reality is that buying a house with bad credit can get tough. Consider that mortgage lenders will conduct a credit report check before determining the interest rate on your mortgage. With a high credit score, you could negotiate a lower interest rate on a house-buying mortgage.

2. Evaluate the Available Home Buying Programs

Different home buying programs are available in Utah. The terms and conditions vary from one mortgage option to another. Let us review the different home buying programs highlighting what they mean to the mortgage borrowers.

  • The FHA Mortgage: The Federal Housing Administration backs the FHA mortgage. The mortgage offers friendlier terms and conditions starting with a low down payment requirement.
  • The USDA Mortgage: The United States Department of Agriculture gives zero down payment mortgages to borrowers who qualify their criteria.
  • The VA Mortgage: Veterans Associations backed mortgage allows qualified borrowers a zero down payment mortgage.
  • Conventional home loans: The conventional home loan requires a high down payment of up to 20% while the qualification criteria are stricter compared to the optional mortgage options analyzed above.

The FHA, USDA, and VA mortgage options are available to qualifying members and provide a cheaper alternative.

3. Seek Professional Advice

When it comes to the financial aspect of buying a new home, it is important you seek advice from qualified experts. Approach an experienced loan officer for advice on the best mortgages. The expert will take you through available mortgage options, advising you on the qualification criteria. Seeking professional advice is an important step especially when it comes to ensuring that you are making informed decisions.

4. Seek Pre-approval From Multiple Mortgage Lenders

Now that you understand the different mortgage options available, you have verified that your credit score meets the minimum requirements, it is time to seek mortgage pre-approval. However, never make the mistake of wanting to apply with just a single mortgage lender. Visit different mortgage lenders in your area and apply for pre-approval. Look at the interest rates and the total cost of the mortgage. The objective is to apply for a mortgage that is cheaper and at a lower interest rate.

No matter how much you are earning, you can afford to buy a house in Utah. However, the important consideration is making sure you take into consideration the tips shared herein.

7 Surprisingly Easy Ways on How to Rent Out Your House and Become a Successful Landlord

Do you envision yourself sitting back and collecting monthly rent from your tenants?  For the majority of home renters, coming out of rent cycles into homeownership and eventually renting a home, as a landlord, seems to be another episode of mission impossible.

However, did you ever pause to think that you could rent a house and become a landlord within an unbelievably shorter time? In this post, I outline some important tips to help you come from being a tenant to homeownership and eventually venture into home rentals business.

1. Smart Financial Planning

The question of how soon you can become a landlord depends on how well you plan your finances. No matter how small your income might appear, your potential is limitless. Here are some important tips to help you make smart financial plans geared toward becoming a landlord.

  • Find out how you spend the current earnings
  • Set long term financial goals
  • Prepare for unexpected with insurance cover
  • Keep an eye on your credit
  • Open a savings account
  • Keep track of your financial goals

The tips shared above will help you to come up with proper financial planning while making sure you spend your money only on things that matter.

2. Focus on Building a Strong Credit Score

The journey to homeownership can be tough without working with a mortgage lender. The truth is that a majority of mortgage lenders will require a minimum credit score to lend you money that can start a good home rentals business.

The journey to a strong and solid credit score should start early enough. It is unfortunate that a majority of people want to wait until it is time to apply for a home mortgage, to start working on their credit score. A clean credit score is a huge step to starting home rentals business today. Here are some important tips to help you build a credit score quickly.

  • Make sure you have settled outstanding bills on time
  • Limit requests for new credit
  • Keep the old accounts open and deal with delinquencies
  • Review your credit score on a regular basis

A good credit score means you are eligible to borrow a mortgage anytime you are ready to start your home rentals business. Moreover, a high credit score lets you negotiate for cheaper mortgages.

3. Focus on finding the Best Mortgage Lenders in your Area

Now that you have a positive credit score, the next item in our tips is researching the different mortgage lenders. The objective is to find what mortgages they are offering and at what rates. A common mistake, especially among first-time mortgage lenders, is sticking just to one mortgage lender just because you are banking with the same bank. The reality is that the other mortgage lenders out there could provide cheaper mortgages and more convenient mortgage terms. In that regard, take time to find out the best mortgage lenders near you.

4. What are the Different Mortgage Options

What mortgage options can you apply under? There are different first-time homebuyer programs available within the mortgage market today. Examples include:

  • VA home loan
  • FHA mortgage
  • USDA home loan
  • Conventional home loan

The home mortgage options come with different requirements. Find out which home buying program best suits your current requirements, and research whether the mortgage lenders provide financing under the particular home mortgage option.

5. Make Sure You Borrow Only What You Can afford To Repay

Mortgage lenders will pre-approve you for amounts that you may not need. Some first-time homebuyers have fallen victim to mortgages they cannot afford to repay. It is always advisable that you borrow a home mortgage that you can afford to repay. Borrowing an amount that you struggle to repay could end up getting you into trouble with the mortgage lenders and the property listed for repossession.

6. Work with a Reliable Real Estate Agent

Real estate agents play an advisory role when it comes to purchasing a home and even building home rentals. In that regard, it is always advisable that you work with a reliable agent who will advise you on the best places to purchase or build a rental unit. in addition, the real estate agents will advise the client on the best types of home rentals to consider. Do not hesitate to seek the guidance of real estate agents when finding a mortgage lender near you.

7. Know the Laws

The home rentals business has guiding rules and regulations that must be adhered to. The home rentals regulations are put in place to make sure there is proper guidance on how tenants and their landlords relate. New landlords need to read and understand the prevailing regulations. 

Are you ready to jump out of the current rent cycles into the home rentals business? All that it takes is proper financial discipline and working with reliable mortgage lenders. Come up with a financial plan and work on a credit score. Do not overlook the importance of researching different mortgage lenders to find out their rates and the rules that apply.