What Every First Time Real Estate Investor Needs To Know

If you’re thinking about getting into real estate investing, there are a lot of things to consider. You’ll want to think about how much money you can invest, what kind of property you want to buy and how much rent it will bring in. You might also consider whether this is something that will be worth your time and effort or if there’s some other investment that would make more sense for you. The most important thing? Make sure you have all the information before making any decisions!

What is the down payment?

The down payment is a percentage of the purchase price that you pay in cash. It’s usually around 5%, but can be as much as 20%. If you are buying a house with an FHA loan, your lender will require at least 3.5% down and may require more depending on their underwriting criteria. If you want to buy with no money down (like me), then look into getting an FHA loan or VA loan instead!

Will my credit score matter?

Your credit score is one of many factors that lenders consider when deciding whether or not to grant you a loan. A good credit score can help you secure a better interest rate on your mortgage and possibly even get approved for more money.

However, it’s important to remember that having bad credit doesn’t mean that you won’t be able to buy real estate at all–it just means that the process will likely be more difficult for you than it would for someone with excellent scores. If this is the case, consider taking steps now so that when the time comes around again in five years or so (or sooner), your finances will be in order and ready for homeownership!

What are the loan terms and rates?

The terms and rates for your loan can change. You should shop around for the best rate. Make sure that you know what your payment will be before you sign the contract.

What is the home inspection clause?

The home inspection clause is the part of your contract that outlines what will be inspected and by whom. It’s important to include this clause, as it can help you avoid surprises down the road by ensuring that any issues with your house are identified before closing day.

There are two parts to this clause:

• The inspection period, which is how much time there will be between when you sign a contract and when it becomes legally binding (usually between 5-10 days). During this time frame, buyers can ask for inspections from third parties such as appraisers or engineers who specialize in certain areas like electrical systems or plumbing. They may also want an interior walkthrough if something about the house seems off during their initial walkthroughs with real estate agents.
• The inspection report itself contains information about each item on the list below so that buyers know exactly what problems exist with each item before making decisions about whether or not they want them repaired/replaced prior to moving forward with closing costs at settlement.

What are closing costs and what happens if they change after closing?

Closing costs are the fees that you pay to the title company, lender and other parties involved in your closing. They can be negotiated down by asking your real estate agent or lender if they will reduce their fees if you use them again.

If you sign up for automatic payments from your bank account, make sure that this is done well ahead of time so that there’s no chance of overdrafting your account when it comes time to make these payments!

Hire a solicitor

A solicitor in Tamworth will ensure that all of your paperwork is correct and that there are no legal issues with your purchase. They can also help you find out if there are any restrictions on the property, such as planning permission or building restrictions.

Is there a mortgage insurance premium or other fees that go along with closing costs?

If you’re looking to get into real estate investing, but are worried about the costs of closing on a property (and other expenses), don’t worry! There are ways that you can save money and be prepared for all of the costs ahead of time.

One thing to consider is mortgage insurance premium (MIP). MIP is a fee that’s paid to the lender in order to insure your loan; it generally ranges from 0.5% – 1% of your total loan amount depending on how much you owe and what type of property you’re buying. If possible, try rolling this into your monthly payments instead of paying it at closing–this will save thousands over time!

You should get your questions answered before you sign on the dotted line

As a first time real estate investor, you should get your questions answered before you sign on the dotted line. If you don’t ask, then how will you know what to look for? And if you don’t ask, how do you know that there won’t be any surprises after closing?

You want an agent who has experience negotiating with banks and other lenders to ensure that they are getting the best possible terms for their clients’ deals. A good agent will also stay close with their clients throughout the entire process so that they can answer any questions as soon as possible — especially during times when things get stressful (like during negotiations).

I hope this article has helped you understand some of the basics of buying a home.