OfflineHi
I would like to know if anybody can give me advise on this topic. I recently talked to a Real Estate Agent in South Carolina and he explained to me that if I am going to buy as my first home resident, I will have a better interest rate than buying a house for investment, and also that the closing cost will be higher. He told me that the reason they are doing this is because of so many foreclosures and to avoid this from happening they decided to increase on closings cost also increase the mortgage with a higher interest rate.
Does this happen to any of you? What are you doing differently from what it used to be before the closing cost where increased?
Thanks
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has always been higher for an investor owned home vs. an owner occupied home. The reason is that owner occupied homes are rated differently for the securitization process that allows your bank to sell the homes to Fannie Mae, etc. Investor based homes are not usually part of this program because the home will be sold in a short time therely making it more efficient for the banks to hold on to the property in their own portfolio. Because of this fact, the closing costs can be (not will be) higher to compenstae the bank for holding on to the property. This is a simplified process of what goes on and it is no means to be a full explanantion of the nuances of a transaction, only a basic answer to your question.
Always Looking to Acquire Houses | Always Looking to Amaze Investors