All Forum Posts by: Elise Marquette

@Jeff Shumway can you offer your expertise?

We are in the area. Would be glad to connect. 

Sure, it can be done. Is there something specific you're wondering about the process?

One of the biggest things with brokers is that you lose control of the process when you go under contract. When you go with a broker underwriting and processing is done with the investor rather than the lender that you are in contact with. We bought our home with a broker and it was a nightmare because the loan was being underwritten by someone in a corporate office who did not have any inclination to meet our closing date. There was really nothing the broker we worked with could do to expedite things. We had to delay closing 3 times. Many deals with a broker are just fine but be aware that you do not have as much control over the process as you would with a direct lender. 

If the property will pass inspection maybe buy it on a Conventional loan for 15% down to keep the cash in your pocket (and protect yourself if things don't work out with the property for any reason!) and then do all the repairs cash. That way you have favorable loan terms, no balloon or anything like that, all your cash available for whatever comes up, and you can still force appreciation. 

If I knew what the rates were going to be buy the time you're ready to cash out refinance I would not be a lender. I would be playing the markets and I would be far far far wealthier. Mortgage rates are a commodity item, just like the price of gasoline. It goes up and it goes down in general trends (for the most part) but since it is so tied to the global economy as a whole, there is no way to predict what your rate will be. There are so many unforeseen variables that will impact where rates are in the future. On top of that, the rate you qualify for will also usually depend on your credit score, occupancy type of the property, loan to value ratio, number of financed properties, and debt to income ratio. 

I get where you're coming from with wondering what the rate will be, but it is not worth wondering about now. Worry about it when the time comes and as long as you're making money at whatever rate is available, you're good. 

Before you do anything, what is the reason for the lender taking forever? If they are having a difficult time qualifying you/getting your file approved for any reason you may run into the same issues when you go to take cash out and not be able to get your cash back out. Also, not sure what kind of loan this is but the LTV may be different for a refinance than for a purchase. I.e. you can purchase a SFH with 15% down Conventional but on a cash out refinance you can only take out 75% LTV (basically a 25% down payment then).

If your lender is just generally incompetent/slow/backlogged and you qualify, then it's probably not a bad idea to buy cash and will likely preserve your deal. 

You certainly can back out and go with someone else. Nothing is official until you sign the closing disclosure at the closing. He definitely should have been more upfront with you about the rates and not receiving the credit. If you're going to back out do it now before the appraisal is ordered. If things get worse down the road after the appraisal is ordered, it can be kind of a hassle to get it transferred. 

I've done many refinances where spouse owns the home and pays all expenses and have never seen a condition like this. Not sure when you got your appraisal done but if it's a Conventional loan, the appraisal should be good for 3-4 months and it can usually be transferred to a different lender. 

Hi Cassandra, I'm afraid it's really impossible to answer that question without having a lender review your credit and income documents to ensure you meet the USDA DTI requirements.

You mentioned your husband was leaving for a deployment, why not use the VA loan if you're looking for 0 down?