Mortgage on a rental property question

[gigant]

Hello ,
I am a first time investor and would like to ask a questionregarding a confusing thing I have in my mind.


If I buy in a rental property and, later on I decide to buy my own home,

how that mortgage on the rental property will affect the
one on my own home? Is the lender going to apply a higher rate of interest?

DO you suggest to buy my own place first then invest in other properties?

Thank you for your time

Robert

[slaedhere]

Yes. It is a good idea to buy a home first before investing into other properties.

[DebbieJ]

Your rate on an investment property will always be higher than your rate on a primary home. Depending on your situation, you may or may not be better off buying your primary first. Depends on income, credit, etc.

If you purchase an investment property, then get a tenant, that will look more favorable to the mortgage company (when you purchase your home) than if it is vacant. Keep in mind that the mortgage company only takes 75% of the rent as income. They figure the other 25% for vacancy, repairs, etc.

Find a knowledgeable lender and one who "thinks outside the box". That will be very important with tricky/difficalt loans. Especially in this market.

There are many variables...so before you have too many lenders pulling your credit, talk with different people and see if you can get some referrals to lenders others have used.