2nd Mortgage

[grantala]

Hello Again:

I am currently looking at my 2nd property and have a question for all of you expierenced folks. How do you talk to your mortgage broker about a second mortgage?

I have a good yearly income and great credit so the numbers alone look good. The scenario is that I have a house I wish to rent out but isn`t quite ready to do that yet and I wish to put an offer in on another property to become my primary residence. Factoring in the numbers to get a TDS, it doesn`t look quite as good on paper. My original mortage broker is a person I won`t use again due to difficulty with the service level, so my hope is to talk to new brokers and come up with a plan.

Any ideas, or experienced insight?

Also kind of a second question to this, but typically what kind of negotiating room does a buyer have purchasing from a builder?

Thank you all for your replies!

 

[kboughen]

This is a great time to interview a few Mortgage Brokers and choose one that will be an important part of your team. Chapter 14 of "Real Estate Investing In Canada" offers some great suggestions in this regard, including;

• Interview Brokers experienced in residential real estate investment, preferably with referrals from experienced investors.
• Get to know them by asking some general questions and business questions.After going through the process trust your instincts and choose one you want to work with.

I would also share the generalities of your current situation with the candidates and ask them for the solution they would recommend.


Since you have had some bad experiences in the past, I would ask the new candidates how they would handle the past situations to see if they better meet your expectations.


Congratulations on moving forward with your next purchase.