Mortgage Expert Spotlight: Jacques Poujade

Mortgages are secured loans upon which people purchase houses and other forms of properties. While many Americans use mortgages to secure homes for personal use, other people apply for mortgages to buy houses that would be renovated and rented out or houses that would be sold.

We spoke to Jacques Poujade, a financial expert and managing partner at LendPlus (a real estate brokerage firm), and he gave us spotlights on mortgage.

Jacques Poujade, it is widely known that you are one of the best when it comes to real estate investing, can you tell us a little more about mortgage?

Mortgages are secured loans; that is, you cannot access a mortgage without collateral. Collateral is an asset that you stand to lose if you do not pay up your mortgage.

There are different secured loans which include automobile, mortgage, and the likes. Unsecured loans are loans that your creditor gives you in good faith; they include credit card loans.

Before you decide to apply for a mortgage, there are specific questions you need to ask yourself like, ‘what is the interest rate on this loan? What is my credit score? What is my creditworthiness? What is my income?

Can you tell us more about some factors to consider before taking a mortgage?

Interest rates: This is the rate of interest you will pay on the principal amount you borrowed. 

Income: When undergoing a real estate project, you must always consider your income. While a mortgage might secure the property for you, is your income enough to run other expenses? 

Credit score: Your credit score is calculated using your credit report. Your credit report is a document that details all your credit history (good and bad history), and then other lenders can use the credit history to calculate the applicant’s creditworthiness.

What Makes a Real Estate Project Successful?

Many factors will determine if a real estate project will be successful or not. Can you pay the loan back?  

While it is advisable to begin investing in real estate as early as possible, you must not rush to the process. If you are in dire financial position or you are unsure of your capacity to pay back the loan, you need to stand back and re-access the situation. 

Also, you need to consider the type of investment you will make. If you buy a real estate property and sell, then you are targeting the short-term real estate investment. 

What Happens If I Default on my Mortgage? 

Fines: Depending on the number of days you defaulted, your banks or financial servicer may add specific late fees to your next instalment. 

Your credit history is affected: When you continuously default on your mortgage, your lender will report your default to all the major credit reporting organizations, and the negative history on your credit report will ultimately drop your credit score. 

You may lose your house or automobile or whatever asset you used as collateral when you wanted to take out the loan. 

Can You Give Us a Few Hot Mortgage Tips?

Invest wisely: Do not invest because other people are investinf. Study the market thoroughly. 

Protect your credit: Bad credit means that you may not be able to get a loan quickly when a real estate investment opportunity shows. 

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Mortgage Expert Spotlight: Jacques Poujade
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