FAQ

Q: Does rental income cover all the expenses such as the mortgage, utilities, taxes etc.?
A: It is possible that the rental income will cover all the expenses of owning a second home. I can prepare an Investment Analysis for any home that you may be interested in that will show you your bottom line.

Q: Do I have to put down 20% to qualify for a mortgage?
A: No! There are programs available to qualified borrowers that allow you to put down as little as 5%.

Q: As a Buyer, is it helpful if I get pre-qualified?
A: Yes. The market on the Outer Banks moves very quickly. Many times the prime properties come on and go off the market in just one day. In addition, it is becoming common for one property to have multiple offers. If you are pre-qualified by a mortgage company it gives you the same strength of a cash buyer. It will show the Seller that you are a serious buyer and your loan contingency in the contract will not leave the seller room to doubt whether you are qualified or not. It is often the pre-qualified letter attached to the offer that helps the seller decide which offer to take. An offer of a lower purchase price with a pre-qualified letter attached is often a better offer than for one with a higher purchase price with a loan contingency for a 95% Loan to Value with no pre-qualified letter attached.

Q: How much does it cost to have a rental company manage my home?
A: The percentage charged by any Property Management Company is always negotiable. However, the range is any where from 16% - 26%.

Q: How long will it take to close?
A: Usually a local lender can process the mortgage application and be prepared to close with in 30-45 days. This is important if the house is booked and you want to collect the rental income at closing.