Profitable real estate investment is subject to thorough knowledge of many things.
Complete and accurate knowledge of real estate investment best practices.
No investment property for sale can be purchased without complete knowledge of political and financial market events. You have to keep your eyes fixed on events like Brexit and newly introduced mortgage rules. Their results definitely affect the real estate investment market and investment return as well.
• Types of mortgages.
• How is the mortgage taken?
• Type of real estate investment for sale to buy.
• The type of auction events to attend according to your investment strategy.
• Real estate investment financing options.
• How do you get financing or financing your real estate investment?
• How to develop a guaranteed exit plan?
• What do you do if your investment plans do not work for you?
A lot of real estate investment agents in London are often seen giving advice/guidance to new investors on such topics. But there is one topic that most agents hardly touch on. This is the DTI (debt-to-income ratio).
What exactly is the debt-to-income ratio?
If you are likely to buy a residential investment property for sale, you must fully understand this concept.
DTI (debt-to-income ratio) is actually your total monthly rolling payments and installments, which is also divided by your GMI (gross monthly income).
What is GMI?
Gross monthly income is the pay employees receive before taxes and other deductions.
Importance of DTI:
According to experienced real estate investment agents in London, DTI helps private lenders or financial institutions decide whether your insurance application should be approved or denied. Here are some very important points they take into consideration before approving or denying your application for a insurance:
• Your current monthly or annual income.
• Your current credit score.
• The ability to pay off the mortgage on time.
• Other mortgage/financial obligations.
In the event that one of your lenders or financial institutions declines your mortgage/insurance application, you must blame the poor debt-to-income ratio.
This isn’t the only thing you should know about DTI. If you are planning to buy some residential investment properties for sale, you will need to learn about several more important things about it. For example:
• What type of monthly bills do lenders consider to determine the debt-to-income ratio?
• What type of monthly bills do lenders consider to determine your DTI?
• What is a good DTI?
• What is considered income in the debt-to-income ratio?
• Can your insurance or mortgage application be approved on a low DTI basis?
• Is it really possible to lower the DTI to get better interest rates or insurances/mortgages?
Now, it looks like you are all set to rely on a DTI (Debt to Income Ratio) before investing in UK property. You should attend a few seminars and also communicate with some experienced investors or agents who would like to share their knowledge and experience with you in this regard.