Profitable real estate investment is subject to an accurate knowledge of many things.
Complete and accurate knowledge of the best real estate investment practices.
Buying any investment property for sale cannot be possible without a complete knowledge of the political and financial market events. You need to keep your eye on events like Brexit and the recently introduced mortgage rules. Your outcome definitely affects the real estate investment market and so does your ROI.
• Types of mortgages.
• How to get a mortgage?
• The type of investment property for sale with an option to buy.
• The type of auction events to attend based on your investment strategy.
• Real estate investment financing options.
• How to finance or finance your real estate investment?
• How do you change a foolproof exit plan?
• What to do if your investment plans don’t work in your favor?
Many real estate investment agents in London often advise / mentor new investors on these topics. But there is a subject that is hardly touched by most of the agents. This is 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 need to fully understand this concept.
DTI (Debt to Income Ratio) is actually the total of your monthly revolving and installment payments, which is further divided by your GMI (Gross Monthly Income).
What is GMI?
Gross monthly income is the payment earned by employees before taxes and other deductions.
The importance of DTI:
According to experienced London real estate investment agents, DTI helps private lenders or financial institutions determine whether their loan application should be approved or rejected. Below are some very important points they consider before approving or rejecting your loan application:
• Your current monthly or yearly income.
• Your current credit score.
• Possibility of repaying the mortgage on time.
• Other mortgage / financial obligations.
In case any lender or financial institution denies your mortgage / loan application, then you must blame your poor debt-to-income ratio.
That’s not the only thing you should know about DTI. If you are planning to buy any residential investment property for sale, you will need to learn about many more important things about it. For instance:
• What kinds of monthly bills do lenders take into account in determining your debt-to-income ratio?
• What kinds of monthly bills don’t lenders consider in determining your DTI?
• What is a good DTI?
• What is considered income in the debt-to-income ratio?
• Can your loan or mortgage application be approved for low DTI reasons?
• Is it really possible to lower the DTI to get better interest rates or loans / mortgages?
Now, it looks like you are ready to learn about DTI (Debt to Income Ratio) before investing in UK property. You should attend a couple of seminars and also get in touch with some experienced investors or brokers who are willing to share their knowledge and experience with you.