Re: Getting started, 10% down? - Posted by Scott M.
Posted by Scott M. on March 17, 2001 at 17:34:38:
Sounds like you have a pretty solid situation. Are you using a mortgage broker or a lender with their own money to lend? I went through a broker for my first deal and was told I wouldn’t have any trouble getting a loan up to $100,000 but when my broker found a lender for me, they ended up backing out at the last minute because I didn’t have enough reserve cash and my deal fell through.
Make sure that you’re actually approved and find out what the amount is. I’ve heard somewhere that when you’re pre-approved they’ll give you some sort of certificate that states that fact. That way you can show a seller that you’re a serious buyer and you’re not going to waste their time (and your own). Anyway, you may want to double check on that just to be sure.
If you know you’ll get the loan, go for it. It may make more sense to get started right away. If you pick up a duplex or some other multi unit property and the numbers show you’ll have a positive cash flow, you can take some of that money to help you pay down your debt with the highest interest rate first.
Suze Orman has a very good plan for paying down debt in her book, “The 9 Steps to Financial Freedom.” It might be worth checking out.
Best of luck to you!!