Category: Tips & Advice

Tips and advice from the experts at Global Home Finance…the most knowledgable and efficient mortgage broker in Texas.

Does your real estate agent have what it takes?

Posted on August 17, 2023 by Global Home Finance - Tips & Advice

5 Traits of the Best Realtors

Friendly, knowledgeable, outgoing… There are certain personality traits that are expected in a real estate agent. But there are other attributes that can take an agent from decent to exceptional. Buying a home is a lifetime investment — you need to be represented by a skilled professional. Here are the top five things you should be looking for when choosing an agent:

Full-Time Professional. Your agent should sleep, eat, and breathe real estate. They should know the ups and downs and ins and outs of the industry. For them, it’s their livelihood—not a side job to score some extra cash.
Five+ Years of Experience. Accomplished agents have spent time and effort learning the business. Market knowledge, rapport with other agents, vendor partnerships, community connections, marketing expertise, and other invaluable capabilities come with expertise.
Strong Negotiation Skills. When working on real estate transactions, it’s extremely important to accurately read situations and respond effectively. Proficient agents know how to strategically bridge the gap between the two sides while delivering the best outcome for their clients.
Buyer Representative. Buyer agents understand how to guide their clients through the buying process. From showing you homes to crafting offers to helping with legal documents, they’re always keeping your best interest in mind.
Availability and Flexibility. Buying a home takes time and dedication. Good agents know they aren’t working 9–5 jobs and that open and frequent communication is crucial. Last-minute openings, offers, and details are frequently part of the journey.

If you’re looking for an agent, we can help. With more than 16 years of experience, we’ve connected with many real estate professionals. So many, in fact, that we now have our own brokerage firm — Global Home Realty. We can connect you with a proven agent while also assisting in finding the right home loan solution — all under one roof! Call today at 866-923-3222.

Do YOU know why banks say no?

Posted on August 3, 2023 by Global Home Finance - Tips & Advice

Do You Know Why Banks Say No?

Are you looking for a new home or rental investment? Before you go to the big banks for a loan, check out these little-known reasons why banks decline mortgage applications.

Homeowners Association (HOA) issues. Buying a property that is part of an HOA can be a wonderful way to keep your neighborhood in great shape. But banks will look at how an HOA affects property value—and raises your debt-to-income ratio. If the HOA’s monthly fee is high, it can reduce the amount of money a bank will loan you, or you could be denied entirely. Do your homework. Know your debt-to-income ratio and the HOA fees at the property you are interested in.

No rental history. Here’s something most people don’t realize: rental history verification isn’t a requirement for mortgage approval. That being said, lots of lenders do look at rental history to see if you have one, or if you have defaulted on your rent payments. And while most landlords don’t report someone consistently paying their rent on time, they will report a delinquent payment—and this can affect your credit.

New or closed credit accounts. Opening a new credit card account can temporarily lower your credit score. If you do this prior to applying for a mortgage loan, this could affect your rate. Closing an account doesn’t necessarily hurt you—unless there is a history of delinquent payments. Keep in mind that your payment history doesn’t disappear once you close an account… it’ll stick around for years.

Spouse has a low credit score. If your spouse has a poor credit score and you jointly apply for a mortgage loan, it could be denied. Banks look at both applicants’ credit histories and factor in both scores when determining a rate and approval.

Co-signing on other loans. This goes back to your debt-to-income ratio. Banks look at how much debt you have compared to your income and then base their approval—or denial—on that number. If you co-sign on another person’s loan, this is considered taking on more debt. It could affect your chances of getting approved for a mortgage.

Check out our other tips on preparing for the mortgage loan process. And remember, Brad—if you’re having a hard time finding a bank to support you, we have more options that can help you out. Get pre-approved with us today.

Dos and Don’ts of Success

Posted on July 20, 2023 by Global Home Finance - Tips & Advice

5 Dos and Don'ts for Building a New Home

Building a new house is stressful… and with a home construction market as volatile as this one, the process can leave you overwhelmed and out of luck. But when you put your trust into construction loan experts like Global Home Finance, you can also experience the joy and exhilaration that comes with building the home of your dreams.

In fact, if you follow these expertly-curated tips from our team, you’ll be ready to roll on your construction project. Here’s what you need to know:

1. Do: Know your numbers. Estimating the project costs is of paramount importance. Using an experienced general contractor or a construction management company to check your work is imperative to create a reasonable budget. Otherwise, you could be short on cash to finish your project—which can be catastrophic. In 2008, many unfinished homes were sold by insolvent individuals and builders. These entities went bankrupt as a result of poor estimating and not having proper funding for their projects.

2. Don’t: Do work before you’re pre-approved. Many people start a project with the best of intentions, but lack the knowledge, discipline, and funds to complete the project. Don’t break ground or do any work on the land besides leveling and grading before you have funds secured. Most lenders will not provide funds mid-construction.

3. Do: Get plans from an architect when doing a custom build. The builders are going to need the architect’s plans to give you a bid. Most home plans will cost around $2,000–$3,000 for a semi-custom or fully-custom set of architect’s plans. Standard plans are available online for much less and can be used for standard builder-grade homes. Know what you want before you go to an architect. You can even bring rough sketches to show them!

4. Don’t: Let others tell you what you need. The people you’re dealing with will likely make suggestions. While good advice is valuable, you are the one who has the final say. You need to decide what you need. This is your house—so make it comfortable, functional, and a place you want to stay without bankrupting the budget. Remember, it can also be a healthy investment that yields lots of financial appreciation and fond memories.

5. Do: Work with a lender who checks out your general contractor’s qualifications. In Texas, it isn’t a requirement to be licensed as a general contractor. The barrier for entry is so low it often attracts some bad actors. Having a lender vet your general contractor by checking their credit for tax liens, judgements, and UCC filings is essential. Working with a lender who has construction management staff will protect both your project and your money.

Do you know what your rate options are?

Posted on July 6, 2023 by Global Home Finance - Tips & Advice

Looking for the lowest rate?

Having the lowest mortgage rate possible can save you a lot of money. But how do you know when the best time is to lock in your rate when they fluctuate daily—even hourly?

Here are three things to consider before locking in—or not locking in—your mortgage rate:

What is a mortgage rate lock? When you’re already on the house-hunting trail, some lenders, like Global Home Finance, allow you to lock in a mortgage rate for your pre-approval before you make a purchase. Others do not. This exposes you to market volatility if your debt-to-income ratio is tight and the rates go up. With our Lock and Shop program, you’ll be able to keep this rate the same for 30 to 60 days while you find your new home. In a market as wild as today’s, this can prove to be a money-saver if rates climb during the lock in period.

How do I know when to lock in my rate? This year, mortgage rates have crept into the 6% range due to inflation, a strong housing market, and other volatilities in the economy. So predicting when (or if) rates will fall can be tricky. But that doesn’t mean you’re out of luck. Navigate the ups and downs of interest rates by discussing your options with the mortgage professionals at Global Home Finance, who have the knowledge and experience to help you.

What if rates go down after I’ve locked in? With our conventional, FHA, VA and USDA loans, we give you the option to float down your rate. If the market improves significantly, this means you can reduce your mortgage rate even after it’s been locked in. While this is a great money-saving opportunity, it can come with a price. If you aren’t using Global Home Finance, make sure you have this option written into your contract before you sign—and look at the fine print. Remember: most lenders won’t tell you when rates have gone down, so keep an eye on the market.

With this knowledge, navigating the world of ever-changing mortgage rates is a little less scary. When working with a licensed mortgage loan officer at Global Home Finance, shopping for loans can be the difference between being a homeowner and a renter for the rest of your life. Is it time for you to get pre-approved?

2023 Housing? See What the Experts Are Predicting

Posted on June 22, 2023 by Global Home Finance - Tips & Advice

2023 Could Be a Great Time to Buy a Home

Brad, we’ve had many clients ask us if it’s a bad time to buy a house. We’re responding to each of them with the same advice—2023 could be a great year to purchase a home, and here’s why:

Real estate experts like Grant Cardone and Robert Kiyosaki are predicting that the next 12-18 months may be the best time to buy before the next inflationary real estate cycle resumes. These cycles last 8-10 years, where prices increase on average by about 56% over the period, and then a correction arrives that decreases values only by about 24% (according to the last 100 years of data on US housing).
The Atlanta and Dallas housing markets are #1 and #3, respectively, in the top 10 real estate markets heading into the new year. The fear is more for markets like San Francisco, New York, Chicago, and other areas where populations are shrinking instead of growing. Population is at a steady rise in our regions.
House prices will flatten this year with an estimated increase of just 0.3% (a stark contrast from the 9.6% year-over-year increase in 2022 and 18.2% in 2021).
After considerable rate hikes, rates are forecasted to stabilize later this year. Some are predicting the Fed will employ a wait-and-see attitude after increasing rates one more time at their meeting January 31–February 2.

On top of that, our loan requirements are very attainable — 3% down and credit scores of 580 for FHA/VA and 620+ for conventional. We have incredible solutions for every situation, including self-employed and underserved incomes.

The bottom line: if the monthly payment is affordable for your budget, this may be the last chance for median income or below median income families to affordably buy a home. For others who want a bargain, jump in before the upcycle (56% in housing price increases over the next 8 years) hits our markets.

Call today at 972-724-3222 to see how we can help turn your home purchase into a wealth-building machine that can help you beat inflation, control your housing expenses, and ensure your family’s future prosperity!

5 Secrets: Get Off the Real Estate Roller Coaster

Posted on June 8, 2023 by Global Home Finance - Tips & Advice

Get the Seller to Choose You

Let’s face it: if you’re a home buyer, today’s real estate market feels like you’re on a roller coaster. The twists and turns of rising mortgage rates, higher-than-normal home prices, and competitive sales can make your stomach ache–or scare you away from buying your dream home altogether.

But there are strategies to get the seller to choose your offer… even when they have multiple on the table.

Check out these five secrets to make your offer stand out from our tenured CEO Brad Cahoone:

Get Pre-Approved (Not Pre-Qualified). Getting pre-approved tells the seller you’re a serious buyer who’s gone through a full underwriting review of your income/asset documents and credit. Being pre-qualified means a lender listens to your responses on income and assets and pulls your credit report. Seller’s agents know this and put offers with pre-approvals ahead of pre-qualification letters.
Cash is King. People like cash—always have, always will. In real estate transactions, it makes the purchasing process easier for both buyer and seller. Roughly 12% of buyers use cash and often rise above the competition.
Lower Your Loan-to-Value (LTV) Ratio. The more money you put down on your new home, the lower your LTV will be. A low LTV offer gives the seller confidence that your loan will be approved.
Work with Experienced Agents. Experienced seller’s agents may not accept your offer because they don’t want to teach an inexperienced buyer’s agent how to do a transaction. That’s why you should hire a full-time, experienced agent who’s been in the industry for five or more years. The seller’s agent is a human, and self-preservation of their paycheck is a factor in deciding which offer they recommend to their sellers.
Use a Local Lender with a Stellar Reputation. Find a local mortgage banker or broker with strong credibility like Global Home Finance. Sellers and their agents want to know the lender can close on time and the process will be streamlined and successful. Also, having a local lender means that the file is underwritten locally, and the lender has a panel of local appraisers who know the market and its idiosyncrasies.

7 Steps to Build Your Business Blueprint & Think Like an Entrepreneur

Posted on May 25, 2023 by Global Home Finance - Tips & Advice

As real estate professionals, we often overlook the fact that we’re business owners. Whether we’re independent agents or work with one of the big brokerage firms, we own a business and need to create a plan to achieve goals for growth. Establishing goals, setting up rules of how we’ll get clients, and putting together processes and systems will guide our business into what we envision.

The most successful agents understand that to make their business grow that they have to work on their business a little almost every day. They know they aren’t simply working another job. They put on their entrepreneur’s hat and often follow a blueprint for building their company. Then, they follow steps each day and work toward achieving the grand goal. To help you get in the right mindset, here are the top 7 steps for building your business blueprint and, ultimately, your business itself:

#1 Market your product

Your first job as a small business owner of any type is to get customers to buy your product so you have revenue. Opening up your business, having an office, or creating a website isn’t like the Field of Dreams. Just because you build it, doesn’t mean they’ll come. Getting your license is a big achievement but any seasoned agent knows you have to build a steady stream of clients to get to the top producer strata and make the 6- and 7-figure annual incomes that we all dream of. This means that all marketing should be done with direct response in mind because a small business must focus on return on investment when the budget is scarce.

We engage in guerilla marketing tactics that are low-cost, like sphere of influence marketing. This helps us build the foundation of our customer database in order to have an exclusive list to market to until they buy or die. For now, let’s focus on having this list deliver our first clients so we can get some money to keep the lights on. Any media we use to advertise to our list or even family, friends, former co-workers, neighbors, etc., should direct them to respond and buy some product. To generate even more revenue, you can sell classes (first-time homebuyers, buying a first investment property, buying land, etc.) in between your real estate sales. These are great bridges to keep revenue in the wheelhouse while also establishing you as the go-to expert for helping your audience improve their real estate IQ.

Real Estate marketing needs to be personal and provide the right message to the right client at the right time. When you master this, you’ll start making big bucks. Creating your own list in the beginning, then adding in referrals, and finally, after you’re making enough to afford it, buying leads/lists will help you meet your goals. When buying a lead or list, it’s important to find a vendor who can get you a prospect that’s in the market and not being sold to 4 to 10 other agents (like on Zillow). Using resources that sell to multiple agents makes you a commodity and you’ll find it extremely difficult to make the income you want without high costs and excessive work.

To build your own prospects from purchased lists or leads, you need to create marketing pieces. You can create your messages to deploy across your chosen media like email, direct mail, website landing pages, and/or social media posts—or better yet—use multiple media sources and watch the responses increase! It’s imperative that you provide a unique sales proposition that shows why they should pick you and how you’ll add more value than anyone else. Then, give the audience a reason to take advantage of the service you’re offering now and tell them what action to take… which is almost always one of two things:

Call you directly (most sales are still made on the phone because real estate is a relationship business!)
Fill out your online form that includes fields to collect their contact information and a notes section to list their goals—which you can use to find the hook that reels them into working with you

Remember, your goal is to get them to respond and take action, so it’s critical to be consistent with your brand messaging. Unless your name is Keller Williams, Ebby Halliday, etc., you’ll want to focus on branding only after you’ve established some credibility via phone call interactions that deepen trust in the relationship. All branding—logos, business cards, printed materials, advertising, events, promotions, and social media posts—should have seamless continuity between images, colors, and messaging so clients know who they’re working with. Once you build trust with clients you close, you can earn their repeat business and referrals. Always ask for referrals.

#2 Prioritize relationships in real estate

To make any relationship last, we have to show people we care and that we’re here to support them. We want to be their go-to resource to deliver on whatever they want from a relationship (business, friendship, or romantic). Everyone wants to know you’ve got their back. In a real estate relationship, let your clients know that you’re a rock star negotiator, you’ll be available nights and weekends to show them homes, you have a list of buyers, you know the right school districts, you’ve got big network investors that might buy, etc., to help them get what they want whether it’s buying or selling a home.

Sometimes, you may even have to cut commissions to close the deal in order to get another deal from them in the future. Working with a discount brokerage can help you win the deal. Global Home Realty’s $395 transaction fee takes the sting out of discounting and shows you’ll do whatever it takes to earn their business.

You can use this as leverage to demand referrals. Say, “Look, since I’m discounting my fee and doing a good job for you on this, I need to get 3 names of people who’ll be in the market in the next 12 months. This isn’t what we usually charge for our fee, so I need to justify the cut by helping others so I can make up for the big discount I’m giving you. Will you agree to give me 3 names if I do a good job for you?” It’s the law of reciprocity… you’re giving them something so they’ll give you something in return. If you have to sacrifice a little to make a deal work then you know you’ll make it up on the referrals.

Finally, always keep in touch with past clients. Just like any relationship, if you ignore them, they’ll go somewhere else. If you really want to be their friend in the real estate business, schedule time to do an annual check-in. Use holidays, birthdays, the anniversary of their closing, or any Hallmark moment to reach out. Stop making excuses and call them up, ask for referrals, or see if they’re in the market. Be shameless. You’re adding value by checking in to make sure they’re taken care of on the real estate front which is a family’s biggest purchase. Don’t be shy. Make sure you’re sending them monthly emails and do direct mail a couple of times a year when you can afford it. This way, you’ll stay top-of-mind when it’s time to represent them if they buy or sell again.

Fostering relationships is essential in the real estate industry. Even if you don’t cut your commissions, it would be a smart business move to have systems in place with a CRM to collect referrals after you close satisfied clients. They’re your best bet to get people like them to do business with you at the lowest cost per acquisition. Creating raving fans for your business is the most valuable way you can grow your business.

#3 Build a solid network

It’s important to have professional contacts, such as inspectors and contractors, that you can count on to serve your clients and make the transaction as easy as possible. Join professional organizations like the National Association of Home Builders. Ask them to let you list properties for a discount on MLS. That will get the builder’s attention and may get you buyers just from the listings. Again, do a deal to get a deal. Then, attend industry events to network and add new contacts to your vendor lists.

#4 Find your niche

Choosing a specialty can help define your career and earning potential. You can focus on first-time buyers, luxury homes, a specific geographic area, or anything you want. When you become an expert in a certain area, you stand out from competitors and attract clients looking for your specific niche. Then, market to this group with tailored messages.

If you provide a consistent quality experience with valuable information, you’ll become the go-to in your space. People will resonate with you when you’re speaking directly to their needs instead of providing broad information. So after you get a couple of years of experience, specialize… then watch your business and income take off.

#5 Provide exceptional customer service

If you want to be a millionaire, treat all of your clients like they are millionaires! Give them the white glove treatment and add more value than anywhere else so they will go nowhere else. Our industry is customer-focused, so let your clients know you’re there for them. Be responsive to their needs even after hours and on weekends. Provide them regular, timely updates and go above and beyond to ensure they’re satisfied. Then, the paychecks will continue to come if you keep sharing messages with them after the close, doing follow-up phone calls, and asking for referrals. There should be no reason for them to ask another realtor for help if you just remind them that you’re the best solution to their problems.

#6 Develop your PERSONAL brand

Remember when we get a new client, we’ll build branding on the first call and afterward. For established clients, providing timely and consistent marketing messages across multiple media channels is a great way for you to build on the rapport you’ve established. This can also bring you repeat or referral business, and hopefully, result in a business you can sell when you’re ready to retire. A strong brand identity goes a long way to having a sellable company. If done properly, it should communicate your values, experience, and unique selling proposition to your clients and their referrals. It will not only deepen your relationship with your audience but can turn previous “no” prospects into loyal “yes” customers—simply by using uniform messaging that keeps you in the forefront when they’re ready to buy or sell real estate.

#7 Keep learning

With the real estate business constantly changing, you should be on top of the latest trends and best practices. Consider participating in professional development courses, attending conferences, reading publications, and attending networking events. The more value you can add to your clients the less likely they’ll go anywhere else. As you help clients successfully navigate from first-time homebuyers to real estate investors, second-time homebuyers, etc., the number of deals and their size will mostly increase.

Next, you should educate your clients by hosting webinars such as building wealth in real estate. By providing additional revenue streams from educational classes on top of your real estate business, you’ll watch your paychecks’ size and frequency grow. So, increase your real estate IQ to improve your competence. If we were to use an analogy in real estate—the competition are cattle rustlers and your clients are your herd—then you’ll have essentially put a fence around your herd. When you have all the right information your clients could ever need, they’ll have no reason to go elsewhere and you’ll put a stop to other agents trying to rustle your clients.

Investing time and money in your business to develop the right marketing system and messaging for your clients’ real estate journey will pay huge dividends in the end. Being strong in sales and marketing can help you to live the lifestyle you dreamed of before you got your license in real estate. It’s more work but will yield exponential returns! Here at Global Home Realty, we can help you get on track to being a 7-figure business owner in the next 5 years. Call us today at 855-732-5395 to discuss with our industry experts how we can help you build out your custom plan to reach your goals faster.

How to Know When to Contact Your Mortgage Broker

Posted on October 13, 2022 by Global Home Finance - Tips & Advice

Even if you’re not ready to apply for a mortgage loan, but you’re thinking about buying a home, the entire process can be stressful. Though it doesn’t need to be because your mortgage broker can help!

It’s true that buying a home is likely one of the largest and most important financial decisions you’ll make during your lifetime, however knowing when and why to connect with your mortgage broker can…

Ease the home loan process
Reduce a lot of frustration
Save you time
Possibly even save you money too

Avoid these Home Financing Snafus

All too frequently, homebuyers experience home financing pitfalls because they didn’t know when to reach out to their mortgage broker. Let’s cover a few quick scenarios that will help you understand when and why to reach out and connect.

If you’re currently renting and believe you’d pay around the same amount each month for a mortgage.
If you have good credit and a good job history and want to buy a house.
If you have a sizeable downpayment saved to purchase a home.
If you’re a veteran looking to buy a house.
If you’re a doctor, police officer, first responder, healthcare worker, or teacher in the market to purchase a home.

If any of these situations sound familiar and you haven’t reached out to a mortgage broker yet, you could end up…

Dying a death of 1,000 papercuts producing doc after doc for the bank
Delaying your closing because the bank hasn’t processed your loan quickly enough (which we all know affects so many other aspects of your life too UGH!)
Spending more to secure home financing than you needed to because you didn’t know that there are custom mortgage solutions available elsewhere

Who do mortgage bank reps work for?

Remember, bank reps work for their bank, not for you. Alternatively, a mortgage broker works with you to help you achieve your goals and dreams of home ownership by finding you the best mortgage program to suit your individual needs.

Mortgage brokers offer a much more personal and flexible approach to service. If you don’t want to be thought of as a loan number or just another file on someone’s desk, working with a mortgage broker is the solution for you.

Applying for a Home Mortgage

If you’re ready to apply for a home mortgage, and by all means, we strongly recommend that you do so, you can lock in your interest rate while you shop for your new home. Here’s what you need to know:

Take the time to carefully complete your mortgage application as accurately as possible.
If you’re not sure if you should disclose something, complete the application with the mortgage broker as they know what’s required and what isn’t.
Gathering your ID and financial documents in advance will help ensure a smooth and quick application process.
Not disclosing something crucial upfront will most likely delay the process and might even cost you the home loan approval.
Not providing requested documentation quickly and completely can also delay the mortgage approval process and again can potentially prevent your home loan application from being approved.

Not house-hunting yet?

Even if you’re not shopping for your new home yet, there are still three reasons to talk to your mortgage broker first.

Set Realistic Home Buying Expectations

The long and the short of it is this…you don’t want to end up in a situation where you’ve found your dream home, but find out it’s actually just outside of your financial reach. Let us give you an example of how a friend of ours shopped for a pricier mattress than she’d ever purchased before. The scene: she’d been pining over a Tempurpedic for about 10 years.

First, she knew her budget before walking into the mattress store. Second, she only tested the Tempurpedic mattress priced within her budget. This was her mindset, if she falls in love with a different mattress that she can’t afford, she won’t appreciate the one she can afford. So why bother testing more expensive Tempurpedic mattresses and causing herself undue stress about something she can’t have?

Third, just to make sure she really did want the Tempurpedic she also tested a few brands within her price range that seemed as though they’d fulfill her needs. Fourth, she narrowed the beds down to her top two or three then brought her husband back for the final test. The Tempurpedic won! It checked every box the couple had.

Of course, shopping for a mattress is much easier than buying a home, but this should give you an indication of the simple preparation that can help you establish an easier and more satisfying home-buying experience with your mortgage lender.

A Serious Homebuyer Catches the Worm, uh, We Mean Gets the Dream Home

You’ve probably heard this before, but when a home seller (or their real estate agent) sees that you’re serious about buying a home and waltz in already preapproved…the game is on! You’re presenting yourself as a hassle-free soon-to-be homeowner. Don’t let a seller think you’re there just to “kick the tires”.

Know What You’ll Pay at Closing

Once you apply for your mortgage, your broker will help you break down the closing costs. When it comes to origination fees, title fees, appraisal fees, and closing costs, it’s important to know as far in advance as possible about how much you’ll need to bring to closing. Your down payment is not the only piece of the puzzle that comes out of your pocket when buying a home.

How can I lock in my home loan interest rate now?

If you’re located anywhere in the states of Texas or Georgia, we can help. Simply click here to learn more about this custom lock and shop mortgage, hit the apply now button, and fill out the quick form.

We’ll be in touch with you shortly to answer any questions you may have and get you started on the right path to home ownership. Act now before this program is no longer offered!

How to Get Started: Finance Your Vacation Rental

Posted on July 15, 2022 by Global Home Finance - Tips & Advice

Finance Your Vacation Rental | Mortgage Broker Texas

Do you have a vacation rental that you are hoping to finance this holiday season? The process for securing financing for a short-term rental is different than a normal residence. So, read below to learn about lending options and how to get started.

Traditional Financing

If you’re buying your first vacation rental property, the most familiar option to you will probably be a traditional or conventional loan. A traditional loan offers some of the most competitive interest rates on the market — but also has some of the most restrictive lending requirements and is the least scalable option for investors looking to grow a property portfolio.

Global Home Finance will generally look at two factors to qualify the loan: the creditworthiness and income. We allow a maximum debt-to-income ratio of around 43%.

Asset-Based Mortgage Loan

Unlike a traditional loan, asset-based loans are evaluated by looking at the actual or potential income of a given property (rental income), rather than an individual borrower’s W2 income and debt-to-income ratio.

Global Home Finance will look at the income of the property and calculate the Debt Service Coverage Ratio (DSCR) to qualify the loan. This type of loan is a significant advantage to an investor because borrowing power is not constrained by individual income.

There are options to consider when thinking about purchasing a second home. So, contact Global Home Finance today to investigate the best available financing option when buying a vacation home. We are here to help you along the way!

Navigate a Competitive Housing Market

Posted on March 30, 2022 by Global Home Finance - Tips & Advice

Mortgage Loan Solutions

Our Partners