Investment Property Finance - Assignment Example

The paper "Investment Property Finance" is a great example of a finance and accounting assignment. Being every man’s and woman’s dream in America, real estate investment demands better and simplified clarification in order to let the investors get better insights into the same. In order to ensure that Tom and Steve Broad receive better and simplified clarification, the following questions will be helpful. Below each question are also some clarification.

• Do you have any experience or ideas as far as loan acquisition for the residential property is concerned? Can it meet your needs?

In this case, I will bring to the notice of my clients that residential real estate is quite expensive to start. A single effort cannot make it and that is why home mortgages have been set to help the interested investors get the loans. All the same, it begins with an idea of wanting to get a house that can be meant for investment, or residual purposes. Upon having these driving forces, next is to get into how to start with the home mortgages (Grogan & Chambers 26).

• Do you have any knowledge of the home purchase loan or mortgage?

Under this question, my work will be to clarify to my client what the home purchase loan is all about. Consequently, mortgage that loan that the borrower takes in order to buy the home and the land on which it is built. The home mortgage includes the principal, which is equivalent to the loan borrowed, the interest that the lender charges on giving out the loan, the taxes and the insurance (Reed 10).

• Do you have any idea on the way the home mortgage operates?

This is important for my clients so that they can have the confidence in the need to apply for loans, having known that they will manage each step in the whole process of loan acquisition. Consequently, I will, in this respect, clarify to my client that the operation of the home mortgage can be looked at from the basis of the lender and the borrower. To give out the home mortgage, the lender has to consider the credit situation of the borrower, and also his or her debt to income ratio. This will bring the confidence that he or she can complete repaying the home mortgage. Next is to look into and be aware of the interest rates.