All Forum Posts by: Derek Brickley

Hey Rick!  Yes most lenders should still provide you that option.

Hey Faiz!  

The key would be how long you would have owned the property and then how much equity you have afterward. You could potentially refinance DSCR as long as the seasoning period has been met (varies lender to lender) and you have the minimum equity position. It wouldn't necessarily mean you have to put more down, but the repairs done on the property would hopefully get you to that threshold.

Hey Preeti!  There are a lot of great financing options available for those looking to househack while in college.  If you have questions about that side of things, feel free to reach out.

Fees in every state/municipality will vary, but let me comment based on my experience.  With that disclaimer out of the way I look at that in a few ways:

- Off the bat, your lender fees appear to be lsightly above average.  Although they wrap it all up into one fee, out flat fees are $395 underwriting and $395 processing with a $60 technology fee.  That probably didn't change for you though from your initial loan estimate and the difference isn't that great really.

- From my standards, your title fees are extraordinarily high.  For that loan amount, we typically see title fees sitting around $1,700-$1,800.  Note that because it is "a service you can shop for" there is no limit to a potential increase.  Compare what they quoted you for title fees initially and you may see a significant jump here.

- In Section H, I'm not familiar with what MISC charge could be $1,400.  Maybe just a different municipality, but I would ask for more detail if you don't already know what that is.

Although potentially high, to work through the differences compare your loan estimate and see what line items were added/changed.  Were you initially paying a point for your rate, or did you agree to that after the fact?  Generally speaking, a good rule of thumb is to expect your closing costs between 3%-5% excluding any points paid so even though they may be slightly higher than other lenders, they are still in that industry-wide range.

Hey Waylon! I'm with Jay, are you trying to find an all-in-one equity line construction loan? Based on your post, I would say you would be looking for a DSCR cash-out refinance and then use that to contract a builder. If you are looking for an investment property construction loan, you will probably be resorting to hard money lenders.

Hey Nick!  
I’m not sure if it would make sense, but would be happy to learn more about you and your situation to see if we could possibly help.  Our team has worked with seasonal/variable employees and so we have developed a system for calculating it that maybe could help at least point you in the right direction.  Feel free to reach out if you have any questions!

Hey Chetan!  Would need to know a bit more about your situation, but we have done something to help investors modify their debt service on portfolios.  I’m not sure it would work for your situation or not, but feel free to reach out if we might be able to help.

Hey Stephanie!  Great question and would be happy to talk in more detail but:

Although there are many transferrable skills, unless you work for a bank that pays you a salary (generally with no commission) I have yet to see a way for new loan officers to not start at the bottom.  Generally speaking it may be a struggle especially while you get your feet wet on how the process works, learning guidelines, etc.  Then building an active pipeline to help buyers can be tough to get moving.  I have seen multiple people leave a successful career to jump into the "lucrative world of real estate" whether that is as a realtor or a lender, only to dry up their savings and quitting 6 months down the line.  It's not for everyone, and starting in it and being successful will take a lot of time, dedication, and effort.

With that disclaimer aside, I cannot imagine another career for myself.  My previous skills transferred seamlessly to the financing side, the numbers and learning and structuring loans.  For many people, their home is their largest purchase and as a loan officer we may be the closest to a financial advisor they ever speak to.  We have such an impact on those peoples' lives that it is extremely rewarding, and when done right it can be enjoyable/fun too!  

In short: It's a great career path for those forward-thinking that will put in the work and enjoy helping people.

Hey Orhi!  There are really only a few ways to lower your quoted rates.

1. As mentioned paying points to buy-down the rate.  However with rates slowly coming down, paying a significant amount of points might not be in your best interest long-term if you will just refinance to a lower rate in the coming year or so.  

2. Increasing your downpayment/equity position and/or credit score.  This might be the hardest route, but depending on your situation could provide the most benefit. There are huge price incentives at different Loan to Value ratios and with higher credit scores, so jumping to the next bucket might give you an edge.

3. Prepayment penalties can be a great way to get better terms on an investment loan.  The key questions though are: how long? what is the pricing incentive? and what is the prepayment penalty?  If you can get significantly better terms with a one year PPP, well that might be worth it.  Or in the case of an investor we just helped he elected a 3 year prepayment penalty to improve his terms, but the PPP is only $750.  You come across the same trade-off here as paying points, if you wish to refinance earlier to a lower rate then make sure that penalty is worth it.

Hey Tim, not sure if we would fit what you're looking for, but would be happy to learn more about you and your situation to see if we might be able to help. Looking for a cash-out DSCR it sounds like?