How to Buy your 1st Investment Property – Step 2
Figure out how you are going to finance the property
Often times people put the cart before the horse. They think that they can start to look at potential rental properties, and once they have found one that is suitable, they want to buy it. They then try to obtain financing for the property, and often times become disappointed because they are not able to afford it.
People make this same mistake when they are in search of their own principal residence. They go out and find a house that they adore, and then they try to get financing for it. This is not the right process to take.
Before you even start to research any potential rental properties you need to consult with a representative in your bank or with a mortgage broker.
If you chose to deal with your local bank, the person that you deal with at your bank branch should be the individual who is responsible for doing mortgages. Although your bank branch can get the job done. If you select a good mortgage broker, their level of knowledge will be quite high. As such, they should be able to answer all of your questions.