Originally posted by @Damian Seguen:
Hello BP, I’m brand new to the Forum. Would love to actually get some advice from people in the industry. Have enough “employee mentality” family steering me away.
I'm 29, 2 years ago, Purchased a 4 family with FHA(345k). Rehabbed my "primary unit" with the intention of renting it and switching into less desirable units while I renovate. Ended up renovating 2 of the 4!
TIME TO CASH-OUT REFINANCE!!!
Here is where the nightmare begins! Went thru a mortgage broker tried FHA Jumbo, they took about 6 months just pushing my file along. First meeting was in July2018, didn't get appraisal until October2018.(635k appraised). I only got calls on Friday's since then. Was told January ‘19 the reserves won't qualify. Now all of a sudden there is an investor loan available 7.5% on a 5/1 Arm AND I CAUGHT A "TYPO" OF 4% ORIGINATION THAT WAS "NEGOTIATED" BY THEM DOWN TO 2% .
Very different from 4.5 30Yr fix ON THE ORIGINAL REFI. Or my current 3.875 30Yr fix.
Needless to say, need the cash out to repay my self back for renovation and begin my next project. It’s now End of Feb’19 and they want me to pay another appraisal for this 5/1 and no closing date in sight. 🙄🙄🙄
I‘D LOVE TO SHARE MY JOURNEY WITH EVERYONE!!
I am not going to go in to the technicalities as few experts have already weighed in with solid advice. Before I go in to the main topic , just want to tell you that , you can only collect information from professionals but you have to decide ultimately - what fits your plans . For ex lot of people see ARM s as bad , and for right reasons , but if you know you will only hold it fr one year , then that is appropriate .
Now my main advice / observation : with any type of professional , mortgage , realtor , attorney - only 10% of them will be good . My question to you is " If they are calling you every friday , and not responding to you , why didnt you fire them ? "It can be their incompetence or genuine ill will . Either way you should have asked right questions , been aggressive and took the situation in your hands. I am not saying that finding a provider to do the sort of loan that you wanted is easy , but I will be really surprised if you put in efforts and make some 50 calls , and still didnt find another broker .
You worked hard and did a great job increasing the equity , now every day , you are not taking advantage of that equity , you are loosing out , your broker need not have that urgency .
So in general , if you see the process taking longer than necessary ( with some allowance for unexpected things ) - you got to move fast . Infact you need to have 2-3 professionals in each trade , people change , they get busy , retire and so on .. if you have backup , you wont be on the mercy of this broker
See how Zach responded , that should be the attitude , to get things done . if you are not seeing that attitude - and just hear complaints , then time to switch .
