1) Have A Financing Plan

If you have strong credit, consistent W-2 income, and a sizeable down payment, traditional financing could be your best option for your first real estate investment since interest rates are typically low and the terms are attractive. Figure out how much you can afford based on your current expenses, and how much cash you’ll need to have on hand for renovations and upgrades. Make sure you know where your liquid funds will come from to improve your chances of landing a good deal.

2) Review Your Credit Report

Request a copy of your credit report through one of the credit bureaus and make sure you dispute any errors or provide an explanation for any derogatory issues or late payments. Keep your credit score from slipping by avoiding any new credit inquiries, canceling any credit accounts, or lowering your limits with any creditors. 

3) Get A Mortgage Pre-Approval

With an approved mortgage in hand, most lenders will lock in an interest rate, so if rates fluctuate upwards while you’re searching for the perfect investment property, you can relax knowing that your rate isn’t going to change. To get pre-approved for a mortgage, you’ll need to have the following in order:

• Personal documents: Two forms of government-issued ID, your social security number, as well as proof of ownership of other property, including your primary residence or other investment properties.
• Tax returns: For the previous year, and potentially for the last two years.
• Proof of income: W2s, paycheck stubs, 1099s, or if you’re self-employed, a year-to-date profit and loss statement. 
• Proof of assets: Bank statements, 401Ks, IRAs, and money held in stocks or mutual funds.
• Summary of all debt: Primary property loan(s), credit card balances, student loans, and all monthly payment amounts.

4) Stay Competitive By Doing Your Research

Just because your financing is approved, doesn’t mean you’re ready to start shopping. Do some comparison shopping and contact other lenders to see what kind of an interest rate they can offer. A few percentage points might not seem significant, but can save tens of thousands or more over the lifetime of a loan and affect your monthly cash flow. Consider checking with a bank other than the one you bank with; they might be very likely to be more competitive to win new business.

5) Cash Funds

Based on your financing plan, you’ll have figured out how much cash you need to have in hand for a down payment and closing costs. Also factor in how much cash you’ll need for renovations or repairs if the properties you’ll be considering aren’t turn-key. Consider your cash flow from month to month to make sure you’re not projecting negative cash flow. Or if you are, that you have a backup source of cash such as drawing from your personal accounts.

The goal of real estate investing is usually to make money. Keep your original goals in mind, and do your homework to help position yourself to enjoy the financial returns from real estate investing.

Additional Resources

5 Smart Tips For Buying An Investment Property – Via Paul Sian

Arm Yourself With Helpful Info Before Buying Investment Properties – Via Petra Norris

Landlord Tax Deductions: What Every Landlord Should Know – Via Joe Boylan

13 First Time Home Buyer Mistakes To Avoid – Via Luke Skar

7 Things To Know About Buying Rental Property – Via Lynn Pineda

How To Budget When Buying A Home – Via Eileen Anderson

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured  through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland, OR.,  living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown, St. Johns, Clackamas and West Linn, I’m very knowledgeable of the many different neighborhoods  our city has to offer.

The post How To Successfully Invest In Real Estate appeared first on JD PDX Real Estate | Your Portland Realtor.

 

Keller Mortgage

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• Ask me about Special Financing available to Keller Williams customers

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DISCLAIMER: This material is provided by Keller Mortgage for informational purposes only and is not intended to be, and should not be considered, legal advice. This communication does not establish an attorney – client relationship between Keller Mortgage or KWRI and any market center or associate. You must obtain legal advice from your own counsel on any particular matter that concerns you.

 

 

Keller Mortgage offers
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“ We were first time home-buyers and it was very stressful when we were looking by ourselves. Once we connected with Jamohl he made the process so much easier and he wasn’t high pressure at all. He took the time to explain everything and every step in the process, his responses to our questions were lightning fast, it seemed like he was available to us every day and at any hour. Jamohl was really helpful and amazing. He has continued to impress and be there for us even after we closed on our house ”

— Google customer review

Questions? Contact me at JD@JDPDXRealEstate.com or 503-545-4945

Please forward to anyone you think this might help!

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The post The ZeroPlus Loan & How You Can Save Thousands appeared first on JD PDX Real Estate | Your Portland Realtor.

[bctt tweet=”When making an offer and there are competing offers on a house, the buyer with pre-approval ALWAYS stands out.” username=”JDPDXRealEstate”] Keller Mortgage offers an unbeatable rate and removes fees for my clients! Obtain loan pre-approval through my app: https://app.kw.com/KW2F3K79K/

Check Keller Mortgage ZeroPlus Home Loan HERE

• Zero Origination Fee
• Zero Processing Fee
• Zero Underwriting Fee
• Low Rates
• $1000 closing credit toward 3rd party Costs (Loan amount must be at least $150,000)
• Exclusive to Keller Williams Transactions
• Zero Plus $0 Lender Fees Plus Low Rates & a $1000 closing credit toward 3rd party costs (for loan amounts over $150K)
• Exclusive access to the Zero Plus Loan offered by Keller Mortgage
• Fantastic Rate and Thousands of dollars in savings.
• Buyers save Thousands of Dollars

Helpful Tips:

4 Questions to Ask Before Buying a Home

1st Time Home Buyer Guide-FREE

The post Make An Offer No One Can Refuse appeared first on JD PDX Real Estate | Your Portland Realtor.

• Purchasing a home can improve your credit score through consistent mortgage payments.

• Additionally, credit bureaus give more weight to mortgage payment history than to credit cards or other more temporary accounts.

• Rental payments may not be reported, so mortgage payments give you an extra account on your credit report.

Source: TheMortgageReports.com

Download FREE 6 Steps to Home Ownership

10 Important Mortgage Tips For First Time Home Buyers

The post Start Investing With Your First Home appeared first on JD PDX Real Estate | Your Portland Realtor.

About Jamohl DeWald

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown and St. Johns, I’m very knowledgeable of the many different neighborhoods our city has to offer.

The post Your Dream Home Is Waiting! appeared first on JD PDX Real Estate | Your Portland Realtor.

Can You Afford To Keep Renting?

• The median net worth of homeowners increased 15 percent between 2013 and 2016, whereas that of renters or other non-homeowners fell 5 percent. • The average homeowner’s net worth is 44 times that of the average renter.

About Jamohl DeWald

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown and St. Johns, I’m very knowledgeable of the many different neighborhoods our city has to offer.

The post Can You Afford To Keep Renting? appeared first on JD PDX Real Estate | Your Portland Realtor.

About Jamohl DeWald

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown and St. Johns, I’m very knowledgeable of the many different neighborhoods our city has to offer.

The post Keller Mortgage Exclusive Benefits appeared first on JD PDX Real Estate | Your Portland Realtor.

You’re about to become a first time homeowner—this is an exciting time! As you begin working with lenders on securing pre approval for a mortgage, you’ll probably hear some terms when it comes to mortgage interest rates such as “fixed” and “adjustable.” To help you make a smart decision, here are some helpful tips you need to know about fixed vs. adjustable rates.

Interest Rate 101

An interest rate is the cost of borrowing money. When you borrow money to purchase a home, the interest rate applies to how much the home will cost you with borrowed money rather than saving a lump sum for the entire purchase price.

Fixed Interest Rate

The most straightforward type of rate is a fixed one. With a fixed interest rate, this means the rate and payments stay the same, regardless of what’s happening with the economy. Some homebuyers may be drawn to fixed interest rates since they offer rate security, making for easy budgeting, though it can end up costing more money in the long run. 

In the event rates go down, homeowners with fixed rate mortgages will need to refinance. Refinancing with a reduced rate will save you some money. Keep in mind there will be upfront closing costs and time spent getting approved for a mortgage all over again with your tax documents, bank statements, and more.

Adjustable Interest Rate

Often referred to as an Adjustable Rate Mortgage, or “ARM,” these types of loans can seem complicated to a first time home buyer. With an adjustable interest rate, borrowers are offered lower rates and subsequently lower monthly payments early in the mortgage loan term. ARMs let borrowers take advantage of falling interest rates without needing to refinance. When you refinance, there’s a significant time investment, and it will cost money each time you refinance. When you have an ARM, you can watch rates and your monthly payment fall without having to do anything.

An adjustable rate. Is a less expensive way for homebuyers who don’t plan on staying in one place for very long.

On the flip side, with an ARM, your rates and payments can also go up over the life of your mortgage loan. These rates will usually have an annual cap, so if rates rise significantly and quickly, you might not be affected right away. On certain ARMs, called negative amortization loans, borrowers could wind up owing more than they did at closing because the payments on these loans are set so low to make the loans affordable that they cover only part of the interest due. The rest ends up getting baked into the principal balance.

The low initial cost of adjustable rate mortgages might be tempting. But, they bring a degree of risk and uncertainty in the long run.

Fixed or Adjustable Interest Rate: Which Is Better?

There isn’t a straightforward answer about which type of interest rate might be better than the other. There are several unique factors to take into account such as

1. the index your lender uses
2. the number and timing of rate adjustments and any assumptions about the future increase or decrease in rates
3. the length of your loan

Work with a reputable and trustworthy lender. Review the pros and cons of each type of interest rate for your situation. Have questions or just looking for a little advice on where to start? Reach out to me here.

More Posts you may be interested in:

4 QUESTIONS TO ASK BEFORE BUYING A HOME

A Complete Quick Guide For First Time Home Buyers

Home Mortgage Options For First Time Home Buyer – Via Anita Clark

A Complete Quick Guide For First Time Home Buyers

About the author

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown and St. Johns, I’m very knowledgeable of the many different neighborhoods our city has to offer.

The post Helpful Tips you Need to Know About Fixed vs. Adjustable Rates appeared first on JD PDX Real Estate | Your Portland Realtor.

As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the $ so that you can get on the road to homeownership.

Get pre-approved

Buying first home tips (1) By getting pre-approved by your lender, you will save yourself the effort of looking at homes you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.

Choose your mortgage carefully

Buying first home tips (2) It used to be, the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt an average person will accumulate due to credit cards, student loans, etc. means it may be better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when your budget allows. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay upfront at closing) in exchange for a lower interest rate. If you plan to stay in your new home for a long time, paying the points will save you money.

Do your homework before bidding

Buying first home tips (3) Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with the help of your Realtor®. Consider sales of similar homes in the last three months. For instance, if homes have recently sold for more than the asking price, your opening bid should probably be close to what the seller is asking if the listing is rather new to the market.

Not sure where to start? Ask your local Real Estate expert, me, for guidance and keep these top real estate tips in mind.

Additional Useful Home Buying Articles:

• 5 Tips For Buying a Home
• 4 Questions To Ask Before Buying a Home
• Best tips for moving with kids via Anita Clark

About the author

My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying or selling process. If you’re not left with an amazing experience, I haven’t done my job. Success is not measured through achievements or awards but through the satisfaction and repeat/referral business of my clients. My goal is to be your top realtor choice when it comes to buying or selling real estate. Having spent most of my life in Portland living in Northeast, Southeast, Bethany, Hillsboro, Beaverton, downtown and St. Johns, I’m very knowledgeable of the many different neighborhoods our city has to offer.

The post Take These Steps First On The Road To Homeownership appeared first on JD PDX Real Estate | Your Portland Realtor.

As a first time homebuyer, shopping for a mortgage isn’t as fun as looking at homes to buy, but it’s an important step that will affect you for years.

Before you start looking for a home you should get pre-approved to buy a home and check out different loan programs in your price range.

There are many ways to shop for a mortgage loan. You can start by looking at online mortgage lenders. Or you can walk in to a bank and ask to talk to a loan officer. A mortgage broker or your real estate agent may be able to recommend lenders, as may friends and family. Online reviews may also be helpful.

Lenders

Before you start talking to lenders, there are a few steps you may want to take first. If you have no credit or bad credit, or aren’t sure of your credit score, start by finding out your credit score and then work on improving it. This could take a month or more.

A low credit score is a sign that you’re a risky borrower, which will likely lead to a higher interest rate on the home loan.

There are many ways to improve your credit score, including paying bills in full and on time, and paying off as much debt as possible.

Credit

Once your credit score is as high as you can make it and is accurate, it’s time to look at lenders more closely. A first check to make is if the lender you’re considering is registered in your state to do business by checking the Nationwide Multistate Licensing System registry.

Next, you can search online for mortgage rates. Remember that each rate is a starting point and that a lender or broker will need to pull your credit report and process a loan application to provide an accurate rate based on your credit score and other information.

Once you get a few quotes from lenders, compare their costs and determine which loan makes the sense for you. The lowest interest rate may not be the best deal if too many fees are added.

Fees

Fees may include commission, loan origination, points, appraisal, credit report, application fees and other costs you may have to pay at closing. Ask if any of the fees will be waived (usually for a higher interest rate) or if they can be rolled into the mortgage.

Ask how much of a down payment you’ll need to come up with. With a higher down payment you may be able to get better loan terms.

Also ask about the turnaround time on preapproval, appraisal and closing, and which form of communication will get the quickest response from them.

One of the last things you want from a lender is an uncommunicative one who doesn’t get back to you quickly. This is probably one of the most important purchases of your life, and you want it to go as smoothly as possible.

Interested in more real estate tips? Contact me today!

The post First Time Home Buyer And Best Ways To Shop For A Mortgage appeared first on JD PDX Real Estate | Your Portland Realtor.