All Forum Posts by: Jeff Dulla

@Tom Harvey there are always options. It’s always a question of whether or not they are worth it.

Non-Prime loans are becoming more and more available but carry a much higher annual cost. They are also typically shorter termed - like 5/1 and 7/1 ARMs. They also include points.

Do the financials even make sense on the multi unit with a 7%+ interest rate?

With conforming financing - yes, would would need two years if the new income in order to use it. Also tips would be used if you claim them. Your better bet is with the income from the business and adding back any depreciation expense you are claiming. 

@Pat Jackson Ten years or longer ago this may not have been that uncommon. I have seen some title reports that have first, second and third liens like this. I am not 100% sure how they recorded it but I know I wouldn't want to be the third lien. I don't believe we are back to where we were in 2006 but there are some things that look eerily similar sometimes. All it takes is a slight down turn for people to be reminded of their recklessness. 

I think for your own personal protection it is definitely smart to close the TCF lien out. 

@Joe Mende yes - they probably were quoted from the title company the lender prefers. They seem a little high. Is it Proper Title?

@Joe Mende Technically, those are services in many, states that you  can shop for. But in Chicago, not so much the case. You could try to negotiate the ability to choose those items, rather than the seller, but here, the seller chooses title and the title company will dictate the costs you see. Unfortunately, it won't be up to you or the lender. 

The title costs above do look a little high. Not sure you will need all those items in there (don't normally see survey in there with the title costs). What is the price of this property? How large of a loan? If your loan is a solid amount of $500k, then this is probably pretty accurate. 

Chicago is an expensive market. However to simplify things for you, most fees are going to be very similar, regardless of the lender, with the exception of origination fees and points. 

And I know how people love talking about nailing down rates and costs on here. My opinion differs a bit because the vast majority of this business is not great at originating loans. There is an absolute value with being 100% reliable and accountable. Even at the expense of slightly higher costs. So if you have a lender that you trust, I would stick with them. 

@Remone R. have you tried talking to a real estate agent yet? A good one will be able to pull comps for you and give you a pretty good idea of where value is - all for free. 

I know a well respected lender in Seattle who man know some solid realtors if you do not. He would also be someone I would go to for advice on four unit refinances in the area. Let me know if you would like his info.

@Matthew Rayl you probably have some solid options with the VA position. Gotta talk to @Chris Mason

@Rahul D. in fairness to your broker, that’s the whole point - this isn’t supposed to be a process you or he/she can manipulate. There is no lender that will provide the “highest value” possible. It is supposed to be an unbiased, third party, assessing fair market value. The government has gone out of there way to make regulations that stop the manipulation of value.

That said, you can do a great deal by having very solid, comparable sold homes ready to go for the appraiser that comes. If they still manage to miss the mark, have a trusted local realtor put together comps and go with a lender that will allow for you to rebuttal your appraisal with comps. You are still subject to the variability of the process, no matter the lender.

@Erin Gray Find a well reviewed, residential Mortgage Banker. Basically they will shop rates like a broker but handle the process, closing, and funding in house. Maintaining control. It’s the best mix and most of the best educated, most consultative lenders are mortgage bankers.

@Amanda G. The PMI cancellation is controlled by the servicer and each servicer can have minimum time requirements. Some have no time requirement. But most I have seen run six months to two years after purchase. So it sounds like he may be in a good spot.

Good luck! 

@Amanda G. How long ago did he buy it? 

Yes - call the servicer and ask them to cancel the PMI. Provide the appraisal. They may want to do their own though.