SubscribeProperty Mortgage and Financing-The Basics of Financing Your Property
Whether you are purchasing your first home or an investment property, securing the appropriate financing is imperative. The goal of this chapter is to provide an overview of the financing process and to discuss conventional financing (A long-term loan a lender makes for the purchase of a home.) for the purchase of real estate. The next chapter will explore creative alternatives for financing real estate.
Generally speaking, buyers want to obtain the maximum loan possible from a bank. This is true for both first-time buyers and investors. Many first-time buyers simply don’t have much for a down payment, while investors hope to get a better return by minimizing their cash investment. Borrowing money is called leverage (The use of borrowed funds to finance an investment and to magnify the rate of
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