Newbie here and need advise on mortgages. I hope to be purchasing my first property with some stats as follows:
Zillowestimate: $80,000
Purchase price: $40,000
I will need some cash out of this deal in order fix up the place (maybe $15,000) When I spoke to a lender recently, he said he could do 1 of 2 things. I forget what the loan term was, but I could get a 30 year mortgage, pay the $40k to the seller. I would have an appraisal done on the place and the appraiser will say what needs fixed. I would get bids for certain things and as they are completed, the bank would release the money to me. In essence, I'm pay up front and then reimbursing myself once completed. He said the problem with this is, the appraisal may come back high and the seller would have to "gift" me $15,000 which means she would have to pay taxes on it as I'm not related to her. The second option (which I like better) is to just get a straight 30 year fixed loan with my current lender and then go to a different lender to get a second mortgage and use those funds to fix up the place. That way its she is selling me the property with no gifting issues. My question is, does anyone know how long after I close on the 1st mortgage, could I go to another bank and close? Right away? Or does anyone have any other ideas? I will certainly pose this question with a second lender for their input, but wanted to run this by everyone to see what they thought or have other ideas. Thanks much! Jim
