All Forum Posts by: Gerino Alejos

Get yourself to a Mortgage broker ASAP brother! 

As a mortgage broker i've received over 20 emails from lenders saying they have halted funding, or made a few "adjustments" to their guidelines. Some adjustments include: 

1. Raising minimum credit score requirements
2. Lowering LTC & increasing rates 
3. Delay in closing (some courthouses are closed around the country) 
4. Difficulties in scheduling appraisals 
5. MOST- loan closings will require Gap Coverage for the Lenders (where applicable and appropriate). If the government recording office has closed and no Gap Coverage is provided by the title insurer for the Lender, the closings will have to be delayed until the government offices reopen.

These are the most notable/common adjustments I have seen in inbox.

IF YOU ARE TRYING TO REFINANCE: 

This is the time to get you Loan Request package in order, dig up all your documents and organize them neatly and appropriately- the last thing you want to happen in a time like this is delay the process even longer because you can't find "leases #5" or your LLC docs are missing and the government buildings are shut down.

When shopping around I advise my borrowers to have an updated copy of their Credit Score with all 3 bureaus. Lender will obviously pull credit but, it's usually not into closing.  

perhaps i'm being bias. But have you considered hiring a broker? as a broker myself, we enjoy doing this. the digging, the calls, the comps on rate and terms. The paper work. Having a broker in your contact list is very powerful' its having a direct line to the best lenders.

Great info @Andrew Postell! I will definitely apply this in lender search strategy. 

Hi everyone, I am curious to know why some investors use loan brokers? or why they don't. What are some DO's and Don't's when dealing with a loan broker? what should your expectations be? 

Questions For brokers- what (broker friendly) banks do you prefer to work with, & why?  what do you expect from an Investor as far as collection of docs? what's the industry standard point fee*?  When do you determine to decrease your fee? If ever. 

@Royce J. Thank you!!!!!

@Michael Ealy thanks you. Appreciate the information. Any website you suggest I can research the subject?

I am working with an investor who is purchasing a 14plex that has 4 units under housing/ section 8. After completing purchase my client will increase rent on all 14 units. Is he legally able to do that on the housing/section 8 units... does anybody have experience on this? what kind of hurdles and challenges will he face? if any. Thank in advance. 

Before you determine what type of loan you want to work with, you should think ahead. Think of the exit strategy. How am I going to sale this property, have you studied the market? How long will the rahab take? thinking ahead helps a lot, especially for a novice flipper. 

Also, Prepayment penalties can be rough on someone with "not a lot of capital", determine sale time, rehab cost, and more importantly can I afford to flop on this project? If you don't have a lot of money try to look for a partner as Bob Greene suggested. If it's your first time flipping don't do it alone its ok to split profit. hope this help. best of luck.