All Forum Posts by: Brandon Statt

@Douglas Slingerland 

First off... I would not talk to a credit union about this... Most of the time you will be dealing with $15.00/hr mindless retail employees who won't understand what your trying accomplish. Aside from that, most credit unions usually have a slim product mix with very tight guidelines... Simply, they can't afford to take too much risk because of their size and non-profit basis.

As far as finding a local bank, it would look something like this:

1. Avoid BofA, Chase, Wells Fargo etc, at all costs.

2. Google local community banks in your area in N. Carolina.

You should be looking for a small regional or N. Carolina specific community bank...

As far as the size of your loan goes... Most 1st mortgage bankers are going to shy away from it... However a bank that services it's own loans may be interested... Thus, the community bank wins...

I would ask the banker their about a traditional 1st or a 1st Lien Home Equity Loan... Which may cost you a bit more but with such a small ticket amount on the loan, the net cost is really negligible...

Also, to offer you a point of reference... Most fixed rate home equity loan products come in terms of 5,10,15, and 20 years... For a loan that size you should find a comfortable payment with those options....

Good luck!

@Brie Schmidt 

Can you repost those companies? It didn't come through in the post.

@Mike D'Arrigo

Thanks for all of the good information. I really appreciate your detailed explanation.

Thanks for all the comments and help @Brie Schmidt.

@ Bob E. - The honest answer to your question... Lack of knowledge in the current rental market. I wanted to sit down with someone and learn more before proceeding.

Can anyone make a suggestion on Turnkey companies in the Phoenix, East Valley, AZ area?

Or just point me in the right direction to find them?

Thanks for the thought.

-Brandon

Hello Cuong,

Firstly, I think it would be beneficial to explain what " closing costs " are because it is a very general term that is thrown around pretty losely. I like to think of it as two parts: 1. the banks fee for doing the loan, and 2. the third party costs that are associated with the loan.

The bank fee, commonly known as "origination fee" , can very greatly. Some banks charge absolutely no fees upfront while others can charge upwards of a $1000 or more. This is part 1.

The third party costs associated with the loan include escrow, title, appraisal, and various smaller services that are a part of getting the loan together. These services are provided by third parties and the bank makes no profit on them.. You are simply picking up the cost.

Based on what you've written in the post, I assume you taken an actual application with this Broker and you should have received a Good Faith Estimate(GFE) a few business days after applying... Also you stated you've been "approved" which doesn't make any sense. If you haven't ordered an appraisal you are no where near being approved... Have you provided income verification and asset information to the broker ?

As far as the credit card request goes, its very common in the industry for this to happen. The lender wants to know that you are actually serious about the loan and are willing to put some "skin" in the game... If not, you could make them do all this work and pull out at the last minute, forcing them to pay the bill for all these extraneous costs.

The closing costs will fluctuate , within a small tolerance, depending on what exactly the third part services need to do in order to complete the loan . So, I don't really understand what he means by checking to see if they match...

At the end of the day you need to consider the following things:

1. Do you know this person?

2. Are you serious about moving forward with the loan?

3. Have you shopped around with different lenders?

4. Have you asked him what his "origination fees" are for the loan. He is a broker and has to add in additional fees in order to be in business as a "middleman" or else why would he do it ?

Anyways,

I hope this helps. I'd be happy to answer any further questions.

Background:

I have been in 1st mortgage lending on the banking side of things for over 6 years.

-Brandon