Money Makes Money

7/12/2007 - With the contract in place, the next step was getting a mortgage loan for the property. Again, I chose to make it easy and use someone that I used previously for a primary residence mortgage. I even re-financed with them in the last few months so I figured I was pretty fresh in their computers. I got set up with a locked in rate at their main office and was given a local branch to the property for my financing and any questions and steps along the way. The branch was one county over, but after driving through six counties just to get to this town, I figured they were backyard neighbors. I got set up with a nice lady who would remind you of a Sunday morning waitress at a Perkin's or a bank teller. From the get go, I was told my process would be very easy and I would be able to close by the first of August, or shortly thereafter. Now this was exciting. I'd be a property owner with 23-30 days pro rated rent and a mortgage not due for two months. What a way to start off!
The lock in rate was a little high. But that is how it is with investment properties. There are no set rates to check in the daily paper. You are at the bank's mercy.