Mistake # 1 Failing To Take Into Consideration the PREPAYMENT PENALTY

As mentioned in the book, Make No Mistakes About Buying Real Estate, one of the first rules when looking to purchase real estate is to make your deal upfront! And part of that deal involves your Mortgage Loan and the Prepayment Penalty. That is the penalty associated with your loan in the event you try to Pre Pay the existing loan off before the agreed upon time. In fact, Pre Payment Penalties can be quite hefty! Often times it's 6 months of interest which is usually the majority of the mortgage payment during the first three years of the loan repayment. It is very important that at the time of signing your loan documents you understand whether or not there's language in your paperwork addressing this very subject. Regardless of what the loan officer said or anyone else tells you look at your paperwork for yourself and make sure you understand this particular aspect of your mortgage loan. There is nothing worse than trying to flip a property or trying to sell it early to find out that your profits have to go towards paying the lender because you didn't know you had a penalty. Go to http://www.makenomistakes.com/ to gain more information on the subject matter. --- "Pass The Knowledge On!"