Mortgage rates have been slowly but steadily rising with rates in the low 7s to high 6s depending on the type of loan, one’s credit score and other factors. Higher rates are definitely putting pressure on buyers and home sales are slow as a result. Home pricing in some markets have started to dip as a result. That being said regardless of current mortgage rates people are buying and selling homes. If the numbers make sense then it may be the time to buy if the situation makes sense. Be sure to check out the great real estate reads in this month’s roundup.

The DSCR Loan

Unlike most loans the DSCR loan allows investment real estate buyers to purchase investment real estate based on the income of the property. The DSCR loan does not look at the income of the buyer. So this is a big advantage to someone who may own a few investment properties but have their cash flows going into reinvesting in the properties versus paying out as income. In this article by mortgage lender Paul Sian he provides some insights into the DSCR loans and why the DSCR loan option may be great for some real estate investment buyers.

Buying a Home With Rental Investment in Mind

The factors that go into buying rental real estate vary compared to buying a home to live in full time. When buying a home for purposes of living as well as renting that changes things as well. Whether one plans to live in the home now and rent it out later or live in the home part time and rent it out the other time in order to offset the holding costs there is much to be considered as Karen Highland points out in her article about what buyers need to consider when buying a home with renting in mind. Things like amenities, location, HOA, taxes, insurance and more can all impact whether it makes sense to buy a certain home to rent out.

Buying and Selling a Home at the Same Time

When it comes to selling a home there are a number of things to be aware of in order to make sure the process goes smoothly. Add to that the need to buy another home at the same time and the complexity can go up. In this article by Paul Sian he helps the home seller understand the contingency clause that applies to buying a home and can help prevent the seller from having to pay two mortgages at the same time. This contingency clause, if the other home seller accepts it, makes sure they home seller only has to buy the other home when their first home sells. This clause can save a lot of time and headache for home sellers.

Private Mortgage Insurance (PMI)

When buying a home using a conventional mortgage PMI will be required when the down payment is less than 20% of the total purchase price. The PMI helps insure the lender against loss in case the homeowner is unable to continue making payments on the mortgage. In this article by Luke Skar he provides an in depth guide to private mortgage insurance. While private mortgage insurance is required when the down payment is less than 20% that does not mean the homeowner has to pay PMI premiums for as long as they own the home. In fact there are times with the homeowner can request the PMI stop (assuming some conditions are met) and there is a time when PMI must automatically be stopped and this article explains all that and more in great detail.

Things to Inspect When Buying a Home

When it comes to buying a home making sure the condition is acceptable in relation to the price being paid is important. As such it is important to inspect certain key areas as problems with them can be a make or break proposition that can lead to big expenses down the line. In this article by Michelle Gibson she provides fifteen areas to inspect at a minimum to make sure a home is up to par. These areas need to be inspected by a professional home inspector and may need even a further deeper inspection by a professional who specializes in maintenance and repair of those areas.

10 Tips For Avoiding Pitfalls When Buying Property Abroad

Buying real estate can be challenging enough as it is. Add to that the buying of real estate in a different country and the stakes just got that much higher. In this article by Wouter Mayeur he provides ten tips for foreign real estate buyers that are a must read for anyone considering buying real estate abroad. From financing to finding professionals to help get everything lined up properly can prevent costly mistakes. It is not something to rush into and instead takes some time and planning to make sure everything goes smoothly.

What other articles did you find interest? Feel free to share in the comments section below.

Be sure to check out this other roundup at MassRealEstateNews.com