Stowe luxury real estate is considered 10% of the market in the area. With real estate selling over $900,000, you are assured that you are in 10 percent of the market in terms of luxury properties in the area. These properties are high-end. For instance, only nine properties were sold in 2012 compared to 11 properties in 2013. There is continued growth found in the stock market that has led individuals to diversify their investment by purchasing real estate in Stowe. Therefore, whatever luxury real estate needs you may have, you are assured that you will meet these needs with the right type of financing from the right real estate property company. Ensure you get the right real estate company in order to get you the help you need when it comes to buying the high-end home that you need.
How to finance luxury real estate
Ever since the housing crash, the prices of homes have been climbing steadily. This leaves most people wondering if this is the right time to invest in real estate. However, this should not be the case. Market data from the Vermont area shows that there is a levelheaded market since then and investing in property is the right thing. One of the main advantages of purchasing Stowe luxury real estate is that you are assured that your investment will not lose value. Therefore, how do you finance the luxury real estate you intend to buy in Stowe?
A down payment that is sizeable
It is important to note that insurance does not cover investment properties. As such, you need at least 20% of the down payment in order to get the financing that you need. In case you manage to place a 25% down payment, you are assured of a better deal that has less interest. However, in case you lack the down payment, ensure you acquire a second mortgage on what property you already own. Nonetheless, this will be an uphill task, which would be taxing.
Become a strong borrower
Ensure you check your credit score before seeking a loan. This will determine the ratio of loan-to-value as well as other policies that are used by your mortgage lender. Essentially, your credit score will be a major determining factor when you seek to get a property in Vermont that is considered a luxury. Therefore, if you do not have the money in cash upfront, then you need a rather high credit score if you are to get that 20-25% down payment you require for your luxury property purchase.
A credit score of below 740 means that you will need additional money to guarantee you get the down payment for the loan. However, if it is above 740, you are assured that you will not have a higher interest rate.
Keep Away from big Banks
Regardless of the fact that you are buying a luxury property in Stowe, you do not need to use a big bank. You might have some cash saved before considering a luxury home; use that cash and add on to a little loan accrued for the purposes of the down payment.
A neighborhood bank will be more helpful compared to a large bank. You can also request owner financing as this ensures that you are more in control of how you pay off the lender.
The above are some of the ways you can use to acquire a mortgage for that luxury real estate property that you require in Stowe, Vermont.