If you’ve been following this blog you’ll know that we’ve been working on closing on another property in the district.
Well last night we sold our stock to raise the down payment funds. The closing date is April 13th, but we wanted to have the funds in cash so there won’t be worries about how the market does between now and the 13th.
We signed the loan paperwork last night as well. We are paying 5.75% with 25% down on an investment property worth approximately $185,000. So, the balance of our loan will be about $139,000 dollars and we’re looking at payments of just under $950 dollars a month.
The loan is with Branch Banking and Trust, who I am less than enthusiastic about working with. The company has a habit of helping themselves to their customers bank balances via fee harvesting. BB&T also tends to charge for things customers should get for free – such as conversations with customer service and starter checks.
Honestly, this will be our third property in the District and maybe the 5th piece of real estate that my wife and I have owned together. For what its worth, the next time we buy a place I think I’m going to try to go all cash. Having been through a couple of different markets and having worked with various lenders in different states, it seems like the real estate borrowing process is geared more towards lining the pockets of the banks and less towards consumer choice and empowerment. Basically after 7 years of being in real estate I’ve concluded it makes more sense to save the money, rather than hassle with banks and their fees.