First Investment Question

[Bob S]

I am new top investing and have been looking at some properties however I am really not sure what I can afford.

Is it a good idea to try to get pre-approved for a mortgage before I find a property or wait til I find the property I want to but then try to finance it?

[Bryan Hancock]

Hi Bob...welcome to BP!

Lining the financing up ahead of time is never a bad idea. If you are READY to lock the loan you can monitor wholesale rates using The Mortgage Professor's site and pull the trigger on the loan when it makes the most sense for you.

Amerisave has a great site for pricing loans. I would start there and see what else you can find via recommended brokers in your area.

I generally try to get zero yield spread on my loans in trade for higher closing costs. This is generally a good investment if you plan to hold the property longer than 5 or so years. The Mortgage Professor has calculators on his site that can help determine which loan product is the best for you and how long it takes to benefit from the additional investment in points up front.