All Forum Posts by: Patrick H.

I'll see what the lender has to say.  Seems they are jumping the gun to try and get my business.  Even before I am ready.

The loan provider indicated that the initial disclosures are required to be signed up front.  That it is a federal guideline.  The document includes an intent to proceed so they can move further into underwriting.  It is not a commitment to lend or binding in any way. 

It sounds like they are trying to speed up the process, but your comments indicate I should just wait until I have an accepted offer.  So why would they provide these documents to me now for signing? 

I was obtaining a pre-qualification for a home loan, and was asked to sign the:

Rate Lock Agreement,  Disclosure Notices, Servicing Disclosure Statement, Right to Receive Copy of Appraisal, Appraisal Delivery Timing Waiver, GFE Acknowledgment, Notice of Intent to Proceed, Flood Insurance Determination, Certification and Authorization, Transcript of Tax Return, Insurance Disclosure, Truth in Lending Disclosure, GFE, Housing Counseling Agencies Notice, Uniform Residential Loan Application.

Should I sign these documents?  I don't have a property picked out yet. 

Does the disclosure document of a seller property come before the buyer does an inspection?  I would think it would be better to see the disclosure first, but not sure if that is a typical requirement in the contract.

 Its called a wood detroying and pest inspecrion report.  The seller wants to sell as is, but i paid market price.  A house down the street sold for slightly less but had a bigger lot and a few upgrades such as tile and wooden floors.  I havent done the inspection, but assume there will be something on that report. 

I received a termite report for a property I was looking at buying.  It has small stuff like water leakage at sink fixture handles, water leakage in sink drain pipe, water stain beneath sink.  I think a turn of a screw would fix those.

One item stated fungus damage to rear patio roof rafters, blocking, support beam and post.  The estimate was $4,200.  I think the whole patio isn't worth that much.  Probably $1,500 to build (open trellis). 

Another item was master bedroom sheetrock window sill damage from open bedroom window.  $386 estimate.

Are these items that the seller should repair or are things that are overstating the issue.  Just want to know if I should walk away and just look for another home, and whether these are major issues with the home.

It seems like the advantage of the HELOC and HEL is the avoidance of fees, which is around $6-$8k for a conventional loan. But in my case, is there any disadvantage of having the HELOC or HEL as the primary lien, since they are typically used as a secondary lien.

The mortgage will be on my main home. The loan will be used to purchase a rental property.

It sounds like the conventional mortgage would be an advantage and should have a lower interest rate since there are closing costs. I believe the HEL closing costs are covered by the bank.

For tax purposes, does it matter what I use the money for if I get a conventional mortgage. For a HEL, I don't think there is any restrictions if it is related to an investment (like real estate or stocks).

For a property that does not have a mortgage, what is the best way to get cash out for investing purposes, whether it is for another property purchase or putting the money in the stock market.

A HELOC or HEL is possible, and since it will be the first lien, I would think the rates would be below 4%. Is is better to just get a lump sum (HEL) even though I would be paying interest right away, but will lock in the rate.

I don't know if I can just get a regular mortgage since the HEL seems similar.