All Forum Posts by: Neil P.

I plan to buy a second home all cash, however, I wanted to refinance afterwards. My credit is great and I have no problem qualifying.

1.  I want a bank with no seasoning requirements.

2.  My current bank  local bank said they will do it only after 6 months on the appraised value which i want, but i have to wait 6 months which i want to avoid.

3.  My current bank is saying they will only do 70% of the refinance after appraised value.

Basically i want to purchase the home all cash, refinance but my local bank said i have to wait 6 months and they will only give me 70%.

Are there any banks that have no waiting period after i buy the home, and give at least 75% of the appraised value?

@Gustan Cho @Doug McLeod @Chris Wosnitzer @Paul Wurster @Andrew S. 

Guys, so now things got confusing.

I got the appraisal back it came out at 230,000 much more than i thought it was going to be.

The house is costing me 155,000.  However, the bank is saying now i cant refinance for 6 months, and they will only give me 70% of the appraised value.

Is this how most banks work?

I dont mind my 155 being tied up for 6 months, however i am going to do some work to the property and im sure the appraisal will either stay the same or a little more.

What do you guys think of this.  The loan officer said i may even have to wait a year but he said 6 months i should be fine.

Are all banks like this?  Anyway around this?  Please advise thank You

@Joe Fairless 

Please let me know your thoughts as well on this.

@Andrew S. @Doug McLeod @Chris Wosnitzer 

So I got the house under contract, i have 14 days to get my appraisal and my home inspection if, my appraisal does not come to 205,000 or above im walking away from the deal.  Any major issues with the property, the owner will either have to repair or we re negotiate the sale price.  This is the way i structured the deal, so worse case scenario i lose out on 800$ from the appraisal and home inspection.

What are your thoughts?  My final offer was 164,000 all cash.  I spoke to the lender again he assured me i can refi as soon as the record date is posted on the house.  The appraisal guy told me the appraisal that comes out this week is the same one they will use when i refi they will NOT do an appraisal again and i will NOT have to pay for an appraisal again when i refi.

@Andrew S. @Gustan Cho @Paul Wurster @Doug McLeod 

So in my situation, should i go with this DFE?? Do i need to get something signed by the lender if so what?

I am going to get this appraisal on monday.  Once i get the appraisal back im going to purchase the property.  I am going to do about 5k of work, then im going to get another appraisal by the same company.  This will be within 30 days, the lender agreed i can do this, and refinance.  So I am def protected here correct?

This property will bring in about 1000 positive cash flow a month with the 30 year fixed on a 4.75 loan with bi weekly payments is what the lender said i have to do if i refinance right away.  Do i need to get this all written out as well?

I do not want to get stuck with my 150k cash in that property for 6 months thats one thing i am afraid of.

Scenario 2: which i dont want to do is put 25% down of the purchase price ill end being in for about 40k cash which i want to avoid.  Cash flow stays the same obv., however the loan is a 4.25 in this situation. 

So the bank i talked too, the guy is giving me there appraisal company (3rd party) that they use for there home appraisals.

This is a multi unit home, the mortgage guy said when i refinance i can do a 30 year old however i will have to do bi-weekly payments.  He will add 1 point and the loan will be a little higher it will be 4.75 as opposed to 4.25.

@Mehran K. 

He stated that i can do the refinance process as soon as the record date is given.  That usually takes a month but i can rush that.  Again im using the bank that will be lending me, the same appraisal company they use.

@Michael J.  , yes big banks, i called small banks they will refinance within a month.

@Mehran K. , positive cash flow for this property will be about 1000 a month with a 30 year mortgage that i showed above.

This property does need about 5k worth of work cosmetic repairs. 

So what type of appraisal should i ask for?  The same company will be doing the appraisal for the bank.

@Mike M. If i were to buy this with a loan, its 25% down for an investment home in NJ.

That would be 38,750 down.

Then closing fees, plus 5 worth of work that needs to be done to the house.

Other route i mentioned above i can get the house with 5k down.  You really think the appraisal will be much different even by the same appraiser once the deal is closed?

@Joe Villeneuve @Larry Turowski , sorry for mentioning other details on the property.

Rental income will be: 2400 a month so 28k a year

Mortgage paymets will likely be 1100 including tax and insurance on a 30 year fixed.

This property will need some work done to it looks like about 5k.

Now question about the refinance.  The bank that will be doing the lending is giving me the contact for there appraisal company.  So in essence ill be doing 2 appraisals one on monday.  Then one again when i refinance.  The same appraisal company will do both. 

So you think the bank will come back with a lower appraisal 30 days later?  If so how much lower can it go.

Thoughts on this?