Mortgage money to work for you? Why not? You have heard finance experts talking about making your money work for you. If you think it is all about insurance, you are dead wrong. With the real estate boom on foreclosed properties, you can have your chance now, even if this is your first time to be an investor.
Investment mortgage loans works like your traditional mortgage, only this time, you are going into business. You can get a fixed rate mortgage or an adjustable rate mortgage, whatever suits your finances. Or you may try your luck with one of those non-traditional mortgage schemes that allow more people with poor credit rating or the self employed to own properties.
How it Works
To protect their p2p investment lenders require borrowers to provide site map of the property on sale and a report on the financial books of the property if you are buying a hotel or a restaurant. If what they see looks promising, your investment mortgage loan is approved fast.
Initially lenders will require a 25% down payment. You also have to pay for an application fee, closing fees, and other fees associated with the mortgage. In short, you go through all the motions of a traditional loan for a primary home.
But you can always shop around for lenders who are willing to do away with some fees if they see you as a good investment too. A good credit rating will benefit you with lower interest rates. But it is best to shop around for better deals.