Getting started on your home purchase

Buying a home can be a complex process, but it doesn't have to be hard. With a little preparation up front, you can save a lot of time and hassle.

 

Investment Property

Investment properties are investments in more ways than one. While you can realize significant income over time, you also will be making personal investments of time and money.

Consider the following tips:

Know the Going Rates

Research what types of properties are available in the area and what the rental rates are.

Understand Full Cost of Ownership

When considering the income from rent, think about the expenses. The mortgage loan is only one of the expenses. Additional expenses may include taxes, insurance, license fees, utilities and upkeep (like paying a property manager or someone to mow the lawn and shovel sidewalks). Plus, you’ll have to factor in out-of-pocket expenses during vacancies. If nobody is there to pay the rent, you are responsible for the rent.

Know Your Personal Finances

Your total debt payments, including all mortgages, cannot exceed 36% of your gross income.

Learn About Tax Implications

Typically, interest on a second home mortgage is tax deductible. You will qualify for additional tax benefits on a rental as well. Talk to a trusted tax advisor.

Read Up On Your Rights and Responsibilities as a Landlord

Learn about local licensing and ordinances, rental agreements, the eviction process, and rights and responsibilities of landlords and tenants.

Identify Contractors

You’ll want to have a go-to list of reputable plumbers, electricians, and other service providers for general maintenance and emergencies.

Screen Tenants

Protect your investment. Create your process for screening tenants. Plan to run credit checks on all potential tenants. You’ll also want to call current and previous landlord references and find out about timely rent payments, as well as how tenants treated a property.

NMLS# 149728  I   Co. NMLS# 3138

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Christian Roberts Mortgage (CRM), and its loan officers, are not liable for information, claims or agreements made by/between the public and third-party entities. These third-party entities may include, but are not limited to: builders, developers, or real estate agents. Even though the loan officer co-sponsoring this site makes efforts to update the information contained, much of it is provided by independent vendors and data feeds, and thus, this site may contain errors, outdated information or purchase conditions, promotions, incentives and/or possible omissions. CRM cannot guarantee the accuracy of information provided, and we encourage buyers to complete their own due diligence in making a decision to build or purchase a home. We also suggest that you seek the professional representation/advice of a licensed Realtor®, as well as any other licensed professional that is appropriate to your purchase decision, including, but not limited to: attorney, accountant, or certified financial planner. Visitors to this site are responsible for the use and decisions made regarding the purchase of a home with regards to the information contained herein.CRM is an Equal Housing Lender.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Christian Roberts Mortgage. is an Equal Opportunity Lender.