All Forum Posts by: Chris U.

Quote from @Miranda Holland:

See if you can stall the seller for a week or two and look for another lender is my advice. You already got the appraisal done I'm assuming. Another lender might just accept your appraisal so it wouldn't take as long 

Thanks Miranda, that's the part I'm trying to figure out as well. Our statements have been out there since the beginning. Even if this were a drop-in the bucket for us, every calculation has been done with the initial quote in mind. 15K I'm sure is a significant buffer for most small-time investors (at least it is for us). The first lender has also said they may (question mark) be able to cut some of the costs by looking at our rental income and running more numbers. Current count is ~8K increase.

And the new broker that we're talking to has said that they can likely use the appraisal that's already been given. Now, it's just a matter of how quick they can close.

Thanks for all the help everybody, much appreciated. Will respond as I'm able to comments here. It's funny, I do appreciate this as a learning experience. This is our second ever deal, and we knew we'd have to take our lumps at some point.

We were able to get an extension (short one). We got in contact with a recommended broker from a friend. He has a few applications out for us right now. Now it's just a matter of how much more time we can get, and how quick the other lender is able to close. We don't have a problem with buying an extension with additional "earnest" funds, but we would obviously prefer to provide the amount that we were first quoted.

Thanks Sergey, I think you're probably right. Never know, sometimes there's miracle workers out there! But I've at least got our previous loan officer helping us now pull a few levers. Hopefully it helps

Hey BiggerPockets, 

Didn't think I'd find myself in this situation. We've been working with a mortgage lender the last few weeks and have already signed the closing disclosure on a $170K investment townhome. Our closing date is supposed to be tomorrow Aug 2nd @ 2pm. The long story short is that our cash-to-close is set to increase anywhere from $15K - 20K due to the lender completely changing our terms. 

We cannot make this work. Can anything be done to help us in this situation - other brokers or lenders? We're in the process of trying to contact a few right now too.
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Explanation: Our usual trusted loan officer is no longer with the company, but stayed on long enough to make it to our closing disclosure. However, now the lender is completely disregarding my wife's income due to her being part-time for less than 12 months (approximately 9 months). She voluntarily made this change and can increase her hours on request with no issue (sets her own schedule). Her hourly rate is  >$35. There have been no previous issues raised with our bank statements, pay stubs, W2s, or any other document that we've submitted. Both of our credit scores are 760+

The closing disclosure had our cash-to-close at $31,980 on a $170K townhome. The terms were 20% down 7.125% with 1 point. Increasing our down payment no longer makes sense for our personal or investment financials.

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Someone more experienced may have a better idea about tax implications. My gut reaction from an optics standpoint is that if it were me, I'd rather pay them separately.

If that tenant's duties change (whether increase or decrease) it would seem a hassle to fluctuate your rent accordingly. I'd rather keep the income math all the same, let the expenses be the variable component.

It may be semantics, but lessening the rent to me could also cheapen the value of the rental in the eyes of your tenant. And also pushback if/when you need to return rent to the initial amount (or more). Even though from a numbers standpoint it's all the same.

Now if there's a tax advantage either way, maybe that all goes out the window haha.

@Account Closed - Thank you, yes this was still extremely helpful! I'll come to the table with these questions and see if we can be a little more accurate with our policy. Thanks!

John - thanks so much for the help, everything you've said has been extremely helpful! There's some explanation for the discrepancies, but you've provided some insight into which direction for us to go.

1. For the discrepancy in Replacement Cost, my agent told us that his contact at Foremost had initially said $190K was what was required for a property. However, our agent reported back that he could recalculate with a different software to justify a lower cost, and came up with $152K.

2. There are "no other structures" for this property. We'll keep this off.

3. We will definitely keep "Landlord Personal Injury", as I'd imagine we'll want the peace of mind!

With those changes made to the second policy (re-adding Landlord Personal Injury), do you feel we're sufficiently covered at a decent premium (around $1232)?

Originally posted by @Chris U.:

Foremost "A" - $1494

Foremost "B" - $1157

Factors that leaned our agent towards the Foremost policy: 1) We're inheriting tenants who are graduate students, and are open to grad students renting the property in the future. 2) The other policy from Erie didn't allow for lease terms other than 12 months. At least in the first year of having this property, we're flexible to other terms.

Info on property: 2 bed 2 bath Townhome with HOA, extremely close to University & University Hospital. Roof, HVAC, Kitchen were all updated as of 2018. Likely buying for $160~. Inheriting grad school tenants, who are currently on month to month, renting slightly below what we believe can be charged. But we're open to keeping them for now, especially in this climate (still gathering all info on tenants)

@John Mocker Wow the computer has not been kind to me today. I've replaced with the proper info in the quote. Thanks for catching.

Hey everybody,

(Sorry to mods, originally posted this in the wrong forum!)

After roaming the BP Forums and blogs for the past few years, my wife and I are finally under contract for our first rental property. So fingers crossed that this one turns out to be worth our while.

I've been discussing landlord insurance with my agent, and he presented us a policy with Foremost. After being presented with "A" policy, I asked if we could strip the policy down and was presented with "B". Would like to hear opinions on either, or if we're missing something else entirely (more or less coverage, etc). Of course, we're going to discuss more in-depth with our agent, but this was the email I just got towards the end of the day. Would like additional informed opinions on the matter.

Thanks in advance!

Foremost "A" - $1494

Foremost "B" - $1157

Factors that leaned our agent towards the Foremost policy: 1) We're inheriting tenants who are graduate students, and are open to grad students renting the property in the future. 2) The other policy from Erie didn't allow for lease terms other than 12 months. At least in the first year of having this property, we're flexible to other terms.

Info on property: 2 bed 2 bath Townhome with HOA, extremely close to University & University Hospital. Roof, HVAC, Kitchen were all updated as of 2018. Likely buying for $160~. Inheriting grad school tenants, who are currently on month to month, renting slightly below what we believe can be charged. But we're open to keeping them for now, especially in this climate (still gathering all info on tenants)

Ahh darn, just now saw that this should have probably been in "Property Insurance Questions & Discussions". Any mods able to help move or delete this post?