First Deal A Nightmare and Have Not Even Closed

[Sheldon McMullen]

I am a newbie investor trying to close my first deal and get my business off the ground and started. I have been reading BiggerPockets and listening to podcasts for about a year gaining knowledge before jumping in. I am in Tampa and located a house in a desirable neighborhood and got it under contract. The house is a 2/1.5, 1127 sq.ft. Comparable houses in the neighborhood that are 2/2 are selling for approximately $290/sq.ft. I was referred by a friend to a mortgage lender who informed me she could handle the deal and also that her company handled in house home-style renovation loans to make sure I had enough funds to convert the half-bath into a full bath. I went this route to maximize the deal. Two weeks after the contract was signed, she informed me that her company no longer does the home-style renovations in-house and they would employ a broker to handle the deal. Needless to say things have not gone smoothly. It has been 11 weeks and I still do not have a closing date. I am ready to discharge them and fine someone new, but I have paid out of pocket expenses for inspection, appraisal, insurance and a HUD consultant that I am worried I cannot recoup or these will not be accepted by a new lender. Does anyone know if a new lender would accept these? And should I find a new lender to close the deal? I appreciate the assistance.

Sheldon 

[Jay Hinrichs]

that will be the rub very few rehab loans will go 85% LTV.

unfortunately the industry is full of mortgage brokers these days that just can't get it done and promise the moon and don't deliver.

I would be talking with your personal banker and see if they can help you.. hopefully you bank at a small local community bank and have a close relationship with a banker there.. I find this to be the very best rates.