With so many different options out there, it can be challenging to find the right loan for you. Make sure you do your due-diligence and research before committing to a certain loan amount, bank or type of loan.

Start by asking yourself, how much can I afford to pay for a home. After figuring up all your debts, credit score, income and other monthly bills, you can make a strong decision about what type of loan is best for you.

Two very important loan decisions you’ll need to make are what type of loan to choose and what interest rate you are comfortable paying.

There are two main types of mortgages: a conventional loan guaranteed by a private lender or banking institution, or a government-backed loan. Most government-backed mortgages come in one of three forms, FHA, VA and USDA. FHA loans are insured by the Federal Housing Administration, were established to make home buying more affordable, especially for first-time buyers, by allowing down payments as low as 3.5% of the purchase price. VA loans are insured by the Department of Veterans Affairs and offer buyers low down payment options and competitive mortgage rates. They’re available to current military service members and veterans only. USDA loans are insured by the U.S. Department of Agriculture and are geared toward rural property buyers who meet income requirements.

All three programs follow the limits for conforming loans and have low down payment requirements. Conventional loans, on the other hand, are offered and backed by private entities such as banks, credit unions, private lenders or savings institutions. Borrowers need good credit to qualify. This is because the loans aren’t guaranteed by an outside source — so the possibility of borrower default poses a greater risk for lenders. Conventional loans have terms of 10, 15, 20 or 30 years. They also require much larger down payments than government-backed loans. Borrowers are expected to put down at least 5%, but that amount can vary based on the lender and the borrower’s credit history.

If you don’t have a lot of cash saved up for a down payment but have solid credit and a stable income, a government-backed loan is likely the way to go.

Keep in mind that if you choose a conventional or government-backed loan and you’re making less than a 20% down payment, you’ll have to pay for private mortgage insurance. If you can afford to save up a large down payment and build your credit score while lowering your debt-to-income ratio, a conventional loan is a great choice that can eliminate some of the extra fees and higher interest rates that may come with a government-backed loan.

Once you’ve chosen your loan, you’ll decide whether you want a fixed or adjustable rate. Your choice determines the interest you’ll be charged. The interest rate on a fixed-rate loan never changes. If you’re settled in your career, have a growing family and are ready to set down some roots, a 15 or 30 year fixed loan will probably be your best choice because you’ll know what your monthly mortgage payment will be. Adjustable-rate mortgages, have interest rates that reset at specific intervals. They typically begin with lower interest rates than fixed-rate loans. After the initial term ends, the interest rate increases or decreases annually based on an index, plus a margin. They most often appeal to younger, more mobile buyers who plan to stay in their homes for just a few years or refinance when the teaser rate is about to end. Paying a lower interest rate in those initial years could save hundreds of dollars each month that may be useful in other financial areas.

All of these options might seem overwhelming at first glance, but keep in mind that the type of loan you wind up getting will depend largely on your credit score, overall income and long-term financial goals. If you have multiple loan options, shopping for the best and cheapest loan can be complicated, and there will be many different factors you’ll have to consider. With different loan terms, time limits and monthly payments, finding the best deal can take some work.

Compare the different loan terms, and when possible, I would recommend choosing the shortest loan term available to you. While a shorter loan term will likely increase your monthly payments, you will find yourself paying a lower amount of overall interest. If for some reason, the shorter loan term comes with a higher percentage rate, then you may consider taking the longer-term loan but making larger payments, as long as there isn’t a prepayment penalty.

In my opinion, the interest rate and/or annual percentage rate (APR) is one of the most important factors to consider when determining which loan is best. For some loan types, comparing interest rates is appropriate, but the APR is a better number to review. The APR factors in fees, including points and origination fees, while the interest rate is just the basic interest charged In most cases, the comparison comes down to whether you are comfortable with the variability in interest over the loan term, as well as the current monthly payment.

Some loans have a loan term that is shorter than the amortization term. Those loans generally have a balloon payment due that is essentially the remaining money owed at the end of the loan term. If you are analyzing a loan with a balloon payment versus one that doesn’t, keep in mind that you will need to have that money available to pay when it becomes due, or you’ll need to refinance.The total amount owned includes the original amount borrowed plus interest and fees. I would encourage you to choose the loan with the least amount of money owed over the entire term, if you can afford the monthly payments.

Lastly, look at the monthly payments to see the amount you’ll need to pay each month. While some loans with variable interest rates or balloon payments may provide a lower monthly payment than other loans, please be certain you are not getting in too deep. In general, I would strongly recommend taking the loan with the lowest interest rate and shortest loan term as long as you can afford the monthly payment. Do your homework and make the best choice for you and your family at that current time.

Make sure you shop around and know that you can take out multiple loans from different lending institutions if you consider buying a home. Be aware that when the economy is on the rise it may be easier to qualify for larger loans so you may want to take advantage of these cyclical periods but don’t spread yourself too thin.

I would definitely recommend in re-financing loans when possible and trying to payoff loan as quickly as possible when paying off a loan for your primary residence. Your strategy may change when you take out loans on other investments, such as rental properties.

Using Self Directed IRA when Investing in Real Estate

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A lot of people are worried that once they have a property, they will not be able to sell it or that they won’t be able to sell it fast enough. Therefore, learning how to write compelling real estate ads is a very important aspect when it comes to getting your property sold fast.

A lot of people hate the idea of being a real estate salesman because of all the negative connotations go along with it (in their mind anyway). However, everyone needs to realize that selling is a MUST for any successful investor.

So, stop running from the idea and start facing your fears!

I’ll tell you a little secret, selling real estate is actually A LOT of fun!! Once people start selling several properties they discover that they have grossly misinterpreted what it takes to promote listings and get their properties sold.

If you price your property right and promote it adequately, you’ll be surprised at how fast you can sell that property fast. Now let’s talk about some tips and tricks to make your real estate ads stand out.

So, do you want to be able to write Real Estate Ads that Sell Properties fast?

First, stop trying to look like everyone else! Most of us have pre-conceived ideas that our listing needs to look like all of the others out there.

However, this is far from the truth and quite opposite of what you should be trying to do. You want your ad to stand out from the others! So put symbols in your title before you post, use unique wording, and play around to see what works for you!

Next, every good listing has a good structure to work from. First, you need a compelling headline. Think about it, this is peoples first impression of the listing.

If you have a compelling headline, they’re going to go into thinking “wow I want to learn more!” You’re only shot at getting a buyer to notice you is standing out from the crowd, so be sure your heading is very different from the others.

Now you need a narrative description of the features your property has to offer. Put yourself in the buyer’s shoes and think, “If I wanted to buy this property, what would I want to know?” Finish off with your call to action with your contact info, I suggest leaving your email and phone number!

Be ready to tweak your ad, if you’re not getting the response you want! Go in and make some changes, change up the heading, change some of the body, ect.

Play around and be creative, this really is a fun process! So get out there and find what works best for you!

If you want more tips about how to write real estate ads that Sell Properties fast do not forget to visit our blog more often: realestatesalesllc.com/blog

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So, why it is a great time to jump investing in real estate right away?

1. Interest Rates are at an all-time low

Why will you benefit from low interest rates? The answer is simple, low interest rates lead to low monthly payments, which is great for investors who are looking to maximize their profits. Several years from now, we’ll look back and say, “WOW! Remember back in 2016 when you could get a mortgage for under 4%?!”

2. Prices are reasonable

Yes, real estate prices have climbed significantly since 2011 and 2012, but those willing to hustle to find great deals, WILL find great deals! Great deals are everywhere; we just have to find them!

3. Technology has made investing MUCH easier!

Back in the day, real estate took a lot of time driving around, talking to people, looking at hundreds of documents, amongst many other things. Today, technology has made investing in real estate significantly easier. Here are some examples:

• Advertising properties is as simple as posting on craigslist
• Tenants pay rent online rather than in person
• Screening tenants can be done online rather than using screening services
• You can take virtual tours of certain areas using google
• And so much more!!

4. Your job is unstable

Job security is not what it once was, it’s entirely too easy for employers to happily let go of hundreds or thousands of employees. Today, the best job security is enjoyed by those who take an active interest in gaining skills and knowledge that can be used elsewhere. Real Estate investing is one of the best ways to gain that financial independence that you’ve always dreamed of!

5. There’s a high volume of foreclosures

Many homeowners have lost their homes due to foreclosure, which means that there are many renters in the market. This is optimal for investors because they can buy rental properties without the burden of a mortgage payment. This also makes finding a tenant much easier.

On the other hand, all those foreclosures could land you an awesome deal. Since banks are more interested in lending than owning real estate, they often list these foreclosed properties at an extremely low price! Foreclosures equal discounts, which makes a great deal for the handyman investor!

6. Years from now you’ll wish you would have started today

Investing takes time, I can’t promise you that you’ll be rich tomorrow if you start investing in real estate today. However, I am saying that in 10-20 years you will likely look back and say “why didn’t I start sooner”? Real Estate investing just makes sense, if you wait too long then you’ll miss out.

7. Real Estate is a great long-term investment

If you look back 30-50 years, real estate is still valued much higher than it was. If you gave tenants paying your mortgage, its makes the investment that much more profitable. So get out there and start investing, let your money work for YOU!

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You definitely want your closing attorney to do their due diligence and make sure the property is free of any liens amongst other things and you obviously want a full and thorough inspection as houses are not always as great as they appear and you need to know exactly what you are buying, you don’t want a lemon.

My recommendation is to not rush the process. While it is possible to move in within a 20 day window from signing the contract, I would not count on it as there are too many factors outside of your control (attorney, appraiser, mortgage lender).

While it is true that a quick close is possible and may allow you to get the house for an even lower purchase price, do not count on a quick close and remember this is a big purchase, wouldn’t you rather wait a few extra days and be sure everything is in order than close a few days early and get stuck with something you were not aware of.

30 days from the day you sign the contract to your closing is typical and what should be expected, while it can be shorter and longer 30 days is a strong predictor.

Remember, don’t be in a rush and make sure everyone does their due diligence before closing, a couple of weeks is worth the wait especially if it ensures you are getting your dream home.

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