- Ensure that your lender has experience with residential income properties and be sure you clarify how much of a property’s income they will consider when determining your eligibility for a loan.
- Gain a comfort factor by inquiring about how this lender has dealt with other clients in similar properties.
- Whenever possible make personal contact with the decision-maker directly at your lending institution.
- Educate yourself on the different types of mortgage products that are available in your area (fixed rate, ARMs, interest-only, etc..)
- Shop around for comparative lending rates and make sure that your chosen lender is competitive.
- Find out in advance what the penalties will be for an early prepayment of the loan.
- Ask for a copy of the terms and conditions and be sure that you read and understand all of them. If you don’t understand something ask to have it clarified.
- If you are dealing with a mortgage broker, find out what their commissions are in advance and who pays them.
- Develop a bond with your lender that can lead to larger future business transactions.
- And keep your Prescott income property advisor in the loop, they may be able to save you time and money