Should I Buy Rental Property with a Lender or Mortgage Broker?

Before looking  at buying rental properties, you need a budget. And because your  budget for real estate purchases is largely a function of how much you can borrow (in addition to your  cash available for a down  payment), you need to determine the  limits  on your  borrowing power. If you can’t afford  a property, it doesn’t matter what  a great deal it is.

Postpone making  an appointment to look at investment properties until after you examine the  loans available. You have  two resources to consult:

Lender is a generic term for any firm, public or private, that directly loan you the cash you need to purchase your  property. This type  of lender is often  referred to as a direct lender. Most often,  your  list of possible lenders includes banks, credit unions, and private lenders (including property sellers). Lenders tend to specialize in certain types of loans.

A mortgage broker is a service provider that presents your  request for a loan to a variety of different lenders in order to find the  best financing for your  particular needs. Just  like real estate or insurance brokers, a good mortgage broker can be a real asset to your  team

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