Income: Initially, the lenders gave people money after having a look at their monthly earnings. But nowadays, lenders make an assessment of the amount of income using different mathematical calculations such as income multipliers etc. Income is received in several forms such as salary, wages, bonuses, overtime, commission, and property or investment income amongst others. A higher amount can be borrowed if the income is guaranteed. A lender will demand proof of income in the form of salary slips or an income reference from the employing company which has a signature of an authorized figure. The details are verified to ensure that no over or understating of income is done. In the case of self employed people, audited accounts are needed as proof of income.

Liabilities: All lenders ensure that the borrower is capable of making the monthly payments of the mortgage without being stressed financially. The borrower could run into arrears particularly when interest rates rise, if too high a monthly installment is set. If the borrower is unable to pay off the mortgage, the lender may repossess the asset which causes considerable difficulties for the borrower and bad publicity for the lender. Therefore, the lender considers the existing credit arrangements of the perspective borrower before assessing the amount which they are willing to offer. The following items are part of existing credits:

• Unsecured bank overdrafts
• Outstanding credit cards payments
• Other mortgages taken out on other properties
• Arrears of tax bills (for self employed only)
• Outstanding Hire Purchase agreements from finance houses

The lender’s criteria can affect the amount of loan available. Normally, the lender banks on the honesty of the borrower to include all existing credit information on the application form. Nonetheless, some information can be verified via credit agencies. The borrower will also be required to submit bank statements.

Amount of Deposit: When the real estate market is at an all time high, lenders are happy to lend 100% of the value of the property for mortgage purposes but when the market is unstable or low, the borrower has to come up with at least 10% of the value. Many lenders have now made it a policy to ask for a deposit of minimum 15% because of the following reasons:

• If the borrower has a stake in the property, he will maintain it as he also has something to lose.
• A sense of commitment is reflected by the borrowers when they make a deposit.
• It can ensure that a lender does not lose out financially because if the property is repossessed, all bills can be paid by the equity value of the borrowers.

For borrowers, depositing means that their monthly outgoings will be reduced and a number of lenders will be willing to give you a mortgage.

Employment Status: Lenders also prefer to give mortgages to people who have steady jobs and do not switch on a regular basis. Inconsistency in jobs can be a disadvantage. Lenders take into account your employment status, employment history and also assess the foreseeable demand of the job in the future.

Credit History: For reducing the incidence of fraudulent applications, the lenders check your credit worthiness through your credit history.

• The lender can ask for a reference from the previous lender if you have an existing mortgage. This is to ensure that all installments have been paid and there are no arrears otherwise the application is rejected.
• In the case of first time buyers who have been renting a property, the reference of the landlord can be asked to ensure that all terms of the lease have been met.
• A reference from banks in the form of banks statements or authority letter can also be required.
• Bankruptcy checks are also carried out by the lender to verify your loan paying ability.
• There are independent organizations and credit bureaus which can provide information about the credit worthiness of individuals.

How much can I borrow for a mortgage? This answer to this question is determined after the above mentioned factors are taken into account.

Get Started Qualifying for Your Mortgage By Filling Out the Information Below

Related posts:

1. Best 15 Year Fixed Mortgage Rates
2. Getting the Best Investment Mortgage Rates

Obtaining Financing for Investment Property

You need some planning before getting appropriate financing for buying investment properties. You have to convince your lender that your property is a worthy investment because he will be becoming your business partner. Before visiting a lender, you should do the following:

• Credit Score: This is one of the most important factors which have to be considered. It indicates your credit worthiness and the bank or the lender will use it to determine if you qualify for a loan, what interest rate should be charged and what credit limits should be set for you. You need to have a good credit rating. It is not essential that you have a perfect rating. Also, don’t take any drastic action such as closing off old accounts just before applying for investment property financing as it may not give off a good impression.
• Understand The Numbers: You should do all the calculations before deciding to get finance. This includes the cost of financing, advisor’s fees, the investment mortgage down payment, repairs etc. You have to be realistic as you need to know if you will be able to make the mortgage payments on time. This can be influenced by your goals. Investors have different goals such as some might purchase a condo or a home when it is in the pre construction zone and may sell it off for a profit even before they have completed the purchase. Some investors might buy a property for renting it out and waiting for the land to appreciate. Similarly, others might buy a rehab property and sell it for a profit after fixing it. One can also buy a vacation home and rent it out until you wish to visit it. The goal can affect your ability of paying off the mortgage.
• Down Payment: You should also be decided on the down payment which you will have to make whether it will be 10%, 20% and so on.
• Paperwork: You should also have all your paperwork ready as it is a must for the purpose of investment property financing. For instance, you need to show your bank statements, business or occupational license, social security card etc.
• Tax Considerations: The amount of income tax you pay can be drastically affected by your investment property. Property taxes have to be borne as well and they might not be deductible in all cases. This is also applicable to the payments you make for your investment property financing. Therefore, you should also take the assistance of a tax advisor beforehand.

Choosing A Lender

High interest rates, mortgages and lending fees can eat into your profits due to which investment property lenders should be chosen with caution. Apart from banks, there are numerous lending companies which can offer loans at competitive rates, such as

No matter what type of lender you choose, investment property financing can aid you in making a sound profit by investing in a profitable property. Ready to get started? Then fill in the application below to get offers from up to five different lending agencies!

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1. Refinancing Investment Property: What It Does For You
2. Finding the Best Investment Property Lenders

1. Location. It is not enough that a home stands in an amazing location as you also need to know what your needs or the needs of your family are. If the home that you intend to buy is significantly far from your workplace, it would be impractical to take it. But if it will be for your retirement house, this doesn’t really matter as long as you are comfortable living in it. If you have kids, it would be a good idea to have a home that is near schools, parks or malls.

2. Amenities. It is also important that you look into the amenities that you want your home to have. Do you wish to have a swimming pool, a gazebo, a garden or an attic? Are you comfortable with a home that doesn’t have a gate? Actually, the amenities depend greatly on the lifestyle that you re used to and it’s all a matter of personal choice.

3. Purpose. The home that you are planning to purchase should also be based on your purpose. People buy homes for different reasons. Do you want a permanent residence, a vacation house, a retirement house, or maybe you simply want to rent it out? Whatever your purpose is, you still have to consider all the factors.

4. Area. When looking for a home, you need to know the exact space that you really need, especially when you have a tight budget. How much space do you need to accommodate your entire family? How many rooms should be in there? Do you prefer a bungalow, a condo type or a 2-storey home? You have to thoroughly study all these components of a home so you can narrow down your choices, and it will be a lot easier for you estimate your budget for a new home.

If you are planning to purchase a home, you have to keep in mind all the above-mentioned factors and possibly get the help of a buyers agent. Determine what your needs are and what you want in a home.

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Nicaragua

Nicaragua is a beautiful country in the heart of Central America enjoying year-round sunshine, outstanding sea-beaches, massive fresh-water lakes and towering volcanoes. It has a lower per capita income compared with its neighbors – Costa Rica, Panama or Belize, as well as lower cost real estate for sale. The country is successfully attracting foreigners looking to invest in property and start a life abroad where the cost of living is far cheaper than back home. The latter are attracted by a benefit laden residency retirement program that offers a wide range of tax incentives.  Most property in Nicaragua is available as fee simple title, insurable by major US title insurance companies including First American and Stewart. As Nicaragua has a relatively under developed mortgage market, most real estate transactions are conducted as cash purchases, although seller financing is on the rise.

The prime areas of interest for real estate investors looking to get into the market for Nicaragua real estate are along the south west coastline between Costa Rica and El Transito and around the town of San Juan del Sur.  Here the geography is very similar to that found in Costa Rica’s Guanacaste province, now home to world class real estate communities and hospitality brands.  Away from the Pacific, another upcoming area for those interested in historic property and Spanish colonial architecture is the charming town of Granada.

Belize

Belize real estate is another enticing option in Central America for real estate investors and tourists alike. It is the only English speaking country in Central America and the smallest in the region, with a size similar to the state of Massachusetts State in the US. Called “Mother Natures Best Kept Secret” in travel circles, Belize is a paradise for nature lovers who travel to the country to enjoy huge rain forests, rivers, caves. Those looking for a touch of history find it in its ancient Mayan pyramids and ruins. Belize is also known for being a tax friendly country with a rapidly growing infrastructure for owning a vacation or retirement home.

Key purchasing destinations for real estate include Placencia peninsula on the mainland and Ambergris Caye, a beautiful island a few minutes flight from Belize City.  While Ambergris Caye still attracts most interest, Placenica is catching up fast – especially with the main road that winds its way along the peninsula now being fully paved and a new international airport under construction.

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That’s why most people look for a real estate agent to ensure their experience will not only be successful–but simple as well.

But the traditional route of finding a real estate agent isn’t always the best.

Just because you’re relative or friend is an agent doesn’t mean you should choose them. In fact, it’s a really good idea to interview all agents because, if you think about it, you’re about to buy an apartment–and that’s no small potatoes.

In the end, you want to make sure the person you are hiring is not only smart about the market, but trustworthy.

How do you do that? Print out the following questions, sit down with a potential agent and spend the better part of an afternoon interviewing him or her. Repeat the process until you find one that satisfies your needs.

1. How long has this particular agent been at his job? If not for very long, can he provide recommendations from past employers?
2. How well does he know the market you are interested in? I didn’t say the “market he is interested in.” What’s important is the amount of knowledge he has about your particular market. If he doesn’t know it, he’s not a good candidate.
3. How does he plan on finding you a place to live? Technology? Word of mouth? Newspapers? The more channels he has at his disposal the better.
4. How does he plan on showing you apartments? Is he available when you are available? Will he tell you about open houses? Will he accommodate you when you find a home while cruising through a neighborhood and want to look at it?
5. How will he handle the negotiations? Will he be timely and provide you with consistent information about how a particular negotiation is going?
6. How open and truthful is he with your expectations? Will he promise to be frank with you if you are getting financially over your head?
7. What’s his cut in finding you a home? Is that negotiable?
8. Are you going to be working strictly with this agent or an assistant? How much is the broker involved–if at all?
9. Is he in any legal trouble? Does he have a trail of complaints lodged against him? Has his broker disciplined him in the past? What about the licensing authority of the local area: do they have him for anything?
10. How long are obligated to work with him? What are the requirements to work with him, if any?

Yes, it may seem like these questions are a little intrusive, but it won’t seem that way to a New York real estate agent. It’s part of the game.

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In today’s market, it’s not easy to find the best mortgage rates for rental property.  In fact, with so many lenders having had to eat flipped houses that ended up being foreclose upon, some banks will almost refuse to touch an investment mortgage.  But there are a few things that you can do to help you get the best rates for your rental property mortgage.

Compare Lenders Online

The number one best thing that you can do to get the best rate on an investment property is to compare lenders online.   That’s why we recommend .  You can compare up to four offers from lenders at once so you can be sure that you’re getting the best rate around.  You can get started by filling out the banner below.

It’s All About the Equity Baby

Many times your ability to get a low rate on your rental property mortgage will be directly tied to the amount of equity that you have in a property.  This means that for a new rental you will need to have a sizeable down payment and for refinancing investment property you’ll need to have paid back a significant portion of your original loan.

One way that you can help yourself out here, especially if you already own a property, is by using extra income from the rent each month to make improvements to the property.  Improvements in the property will raise the property value, thus increasing the amount of equity you have in it and making it easier for you to qualify to refinance investment property.  This money could also be used to pay back the mortgage, but if you mortgage has an early prepayment penalty, it might not be worth it.

Rental Income Is Key

One thing that you can’t be without is records of rental income.  So if you currently own the property, make sure that you’re keeping tabs on how much money you’re bringing in each month minus your expenses.  Banks typically won’t approve a mortgage for your rental property if you can’t cover the mortgage payments with the rent and then have a buffer for vacancies.

If you’re buying a new property, make sure that you can get copies of their rental records and verify that they are accurate to the best of your knowledge.

In Conclusion

A loan for a rental property, or any kind of investment properties, is different than your normal home loan.  Because you don’t live in the house, banks will see you as having less of a stake in it and more likely to default on the loan.  You can combat this to get a good rate by either taking a strong equity position in the property or by showing them that you will generate enough cash to easily pay your bills each month.  If you’re ready to start looking at rates from different lenders, fill out the form below to get started looking at offer from Lending Tree – where banks compete and you win!

Related posts:

1. Getting the Best Investment Mortgage Rates
2. Best 15 Year Fixed Mortgage Rates
3. How to Get the Best Mortgage for Investment Property

Finding the best 15 year fixed mortgage rates online can be a pain, with so many different lenders to choose from and terms and conditions how are you supposed to know which mortgage rate is the best?  Luckily, we’ve made it simple for you with our top recommended place to find mortgages online, Lending Tree.  You can , meaning you spend less time filling in the same forms over and over again and more time doing the things you enjoy, like spending time with your family.  To get started, fill out the information in the banner below, or see our guide on what you need to ensure you get the best rate on your mortgage.

Getting the Best Rate on Your 15 Year Mortgage

While comparing different lenders is a great way that you can get great rates on your mortgage, it’s no substitute for the fundamentals.  Especially in a tight credit market like today’s, where lenders will scrutinize and make sure that they have plenty of protection for your mortgage there are a few things that you need to do to make sure that you get the best rate on your loan.

Get Your Credit Score Higher

The first thing that you can do to get a great rate on your loan is to build up your credit.  This might not be easy if you have really bad credit, but there are some things that you can do, or avoid doing, that might impact your score.

Save Your Pennies and Build Your Credit to Get the Best Mortgage Rate

• Don’t apply for new credit cards:  Every time you apply for credit, your credit score will dip by a few points, so if you’re thinking about buying a home, hold off on applying for new cards.
• Don’t cancel your old cards though!: Part of your credit score is the length of credit history you have with different lenders and the amount of revolving credit you have open.  So make sure that you don’t cancel cards, especially ones you’ve had for a long time, if you want the best score possible.
• Pay down your credit cards: As stated above, the amount of your revolving credit that is open is a big determinant on your credit score, so pay down your existing balances.
• Get your credit score and check for discrepancies:  Try to address any unpaid bills or other discrepancies on your credit report

The Down Payment

Once your credit is in line, you need to start thinking about saving up for a down payment.  While you can qualify for loans with no money down, these loans will give you terrible rates!  The amount you need will depend on the type of property you want to own.  Lenders will require more for an investment mortgage (over 20% usually) than they will for a home that you plan on living in.  Talk to your local bank to try to get an idea of what to expect for your interest rate to get the best rate on your 15 year mortgage.

If you have your credit history and down payment in order, you should be well on your way to finding the best 15 year fixed mortgage rates.  For more information on what type of rates that you can get, fill out the information in the banner below and get banks competing for your business at LendingTree!

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It’s no secret, as any of the millions of tourists to this tropical paradise will tell you, that Thailand is an amazing scenic country.  The beaches are some of the best in the world, the scuba diving is spectacular and attracts divers from every corner of the globe, and if you ever tire of the surf and the sun there is always some of the world’s biggest tropical rainforests and countless centuries of culture for you to enjoy.  All this and a low cost of living makes Thailand beachfront condos a great option, whether for a second home or a place to retire.

A Bit About Thai Property Laws

Thailand, like many foreign countries is strict with many of their property ownership laws.  In fact, it is illegal for any foreign citizen to own more than 49% of the total area of a parcel of land in Thailand.  So, unless you have a very trustworthy person who you could trust with majority ownership of your land, there isn’t any way to own a house or large tract of land.

Luckily, the easy way around this is by owning a condo.  Condos allow you to have direct ownership over your unit, while you fulfill the Thai government’s ban on foreign ownership by having the other tenants occupy the remaining 51%.

Why Thailand?

Palm Trees, Calm, Blue Waters, and 100s of Islands for Your Enjoyment

• Great Weather and an Environment that Can be Compared to the Mediterranean or Caribbean
• Stable government: Despite a few notable exception like the Red Shirt protests, the Thai government as a whole is stable.  And since the country depends for tourism and foreign investment for a large part of its income, rule of law, and contract and property rights are enforced.
• Cheap Medical Care: You can get first world medical care for a fraction of the price you would in the West.  In fact, medical tourism is one of Thailand’s booming industries.
• Cheap and Reliable Public Transportation
• Thousands of Years of Temples, Museums, Culture, and History
• Friendly, Smiling Locals: It’s not called “The Land of Smiles” for nothing!
• White sand pristine beaches and crystal-clear azure waters
• Huge tracts of old-growth jungle with incredibly biodiversity
• And too many other reasons to list!

Where to Look for Thai Beachfront Condos

With hundreds of island and a long, tropical shoreline, Thailand has a plethora of different options for condos right on the beach.  While you can find a bunch of different options, you best bet is to look for condos in the most developed tourist areas.  Here you’ll find a stronger resale market, more developed infrastructure, and services and people that would be more than ready to help you find your dream condo.  Phuket beachfront condos fulfill all of these requirements and more.  You can find out more information about them by clicking the link.

Beachfront condos in Thailand make great investment properties or retirement homes.  You can find more information at the Thailand Property Guide or on several sites online.

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One of the best investments that you can make is an investment in property.  Investment property gives you two ways that you can profit, either from appreciation of the property or through the actual rents paid to you by the tenants. One of the most important parts of getting your property and making it profitable is finding the best mortgage for investment property.  The easiest way to do this is to , our featured loan agent.  You can get started by using the box immediately below, or read more below the box about how to find the best loans for investment property.

What To Look For

There are several things that you need to look for in your investment mortgage to make sure that you’re getting the best loan for you.  They are the down payment, rental cover, repayment period, and fixed or floating interest rates.

Down Payment

Most investment property lenders will require you to put down a down payment equal to about twenty percent of the total cost of the property.  Larger down payments will reduce the total cost of your borrowing and lower your monthly payments but might also restrict the property that you can buy.  Try to balance the two costs when you’re buying investment properties and figuring out how much of a loan that you can handle.

Rental Cover

One of the most important statistics when lenders are looking at an investment mortgage is the amount of rental cover that you have built in.  Rental cover is the amount of rental income divided by your mortgage payment.  For the best rates you should have over 125% rental cover.  This will also give you money for upkeep and other expenses.  Some investment mortgage lenders will let you borrow with just 100% rental cover, but the rates will be much higher than they offer other companies.

Good Rental Cover Will Lower Your Mortgage Costs

Repayment Period

The repayment period of the loan is also important for investment properties.  Longer repayment periods will cost you more in interest, but they will also lower the monthly payments that you have to make, which will give you more money to make improvements in the property (an hopefully eventually charge more rent) or simply enjoy each month. See our investment property calculator for more information.

Fixed or Floating?

The final thing you need to consider when you’re searching out the best investment property is whether you want a fixed or floating interest rate.  Floating interest rates, also called ARMs, might give you a lower rate, but when interest rates go up, you might be shocked to find your payments have increased exponentially!  If you’re thinking about an ARM, make sure to pay attention to the fine print and never get one without a ceiling that places a limit on how much the interest rate can change over the course of the loan.

Now that you know the basics, you’re ready to get started looking for the best mortgage for investment property!  Start your search with , where you can easily compare the different rates and terms for various different lenders.  Start by filling out your information in the box below.

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1. Getting the Best Investment Mortgage Rates
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3. Best Way to Refinance Investment Property

As Thailand’s largest island, at 48 miles long and 21 km wide, Puket has something for everyone.  You can go from the from the pristine environs of Banana Beach to the downright seedy underbelly of Ao Patong.  And with good access to several international airports and ferry access to all of Thailand’s other major islands, including the legendary Ko Phi Phi made famous by the movie The Beach, Phuket Beachfront Condos make a great investment for anyone who wants to own property in Thailand.

Why a Puket Beachfront Condo?

Islands off of Phuket

But Why Not a Beach House?

Unfortunately, you legally can’t own a beach house in Puket.  Beachfront Property in Thailand can only be owned by Thai locals.  The one loophole is that a foreigner can hold up to 49% of the space of the land.  This allows you to buy condos and have ownership of a certain percentage of the condominium company and also sell them as if they were common stock in a company, albeit with a little bit more paperwork involved.

How Much Will a Beachfront Condo in Phuket Cost?

Beachside Condos in Phuket Still Under Construction

• Luxury:  These are the cream of the crop condos with real oceanfront views – 100,000 THB per square meter or 6.25 million THB for a single room apartment
• High End: Still close to the beach, but not the pinnacle of living – 80,000 to 100,000 THB per square meter
• Mid-Range: a little further back from the beach, but still great – 80,000 THB per square meter or around 5 million THB for a single room condo

An investment in Phuket beachfront condos is an investment in a growing tourism market that will pay dividends for years to come, regardless of if you are looking to buy the property for your personal use or as an investment.  Start searching to find some great deals online today!

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