All Forum Posts by: Patrick Orah

Congratulations on the new purchase and all of your success so far.

How were you able to build up to as many properties as you have so far? Are they bank funded and if so are you using any local banks? Do you know of any good local banks that are investor friendly? 

@Joe Splitrock wow thanks for the explanation! I never in knew about this or thought about this. I now have something new to learn. Thanks for the info!

@Caroline Gerardo yes I have a business. In fact we moved forward with the refi on the basis of using my business income which I provided paperwork for in a timely manner, including both 2018 and 2019 personal taxes. I believe you are right in that the loan officer was not as good as I would have liked or was not prepared for the curve balls as he should have been. The loan officer promised that it would take less than a month and it took almost double the time and I needed to pull my credit a second time and the good news is that I am now cleared to close.

Question for you @Caroline Gerardo, when applying for a mortgage for properties 4 units or less what DTI do you like to see (credit of 800)?

@Joe Splitrock thanks for your comment. Can you explain the IRS tracing rules on cash out refinances?

@Caroline Gerardo thanks for the detailed explanation. To answer you question the underwriter took an extremely long time to approve everything and asked for more documentation at every turn. I have been very organized and have produced the requested documentation on the same day that they were requested. We had no issues with the appraisal process aside from the appraised value coming in lower than expected. It appears to me that the loan officer and underwriter were not on the same page and lending just got tighter. None of this was due to error on my part nor delay from me. The loan officer promised one thing and it ended up being a different thing at every turn. At the end of the day we are days out from closing but we were days out from closing three weeks ago so I am not holding my breath.

@David Kelly Thanks for your reply. This makes a whole Lotta sense. I always wondered if I was intentionally being delayed but based on the information you have provided the issue was due to multitude of variables - we took a long time to close after appraisal was ordered and completed; and the appraisal did come in lower.

@Russell Brazil one data point to add. The property in question was purchased as a residential in 2005 that I now use as a rental. Again, it is currently on a 15 year fix at 3.125% with 10 years remaining. The rent is only $130 more than the total mortgage. The refinance will create a difference or after debt income of $672 including the $43k cash out but the new loan will be a 30 year fix at 3.375%. In your opinion do you think it is still not really worth it?

@Jennifer Marie Shanks thanks! It’s been an experience this year with lenders.

@Russell Brazil thanks again for your reply.

I agree that it is not worth it at this point. The estimated cash out went from and estimated $72k to $43k.

@Russell Brazil thanks for your reply. I was under the impression that my rate was locked. In my mind the point of locking a rate is so that it does not go up if the market changes which it did. I know we are talking about dollars, at the end of the day, but now it cost way more to buy the rate down than I was prepared to do thus making closing way more expensive.

Here is another question to you @Russell Brazil. If you have a current mortgage with a fixed rate of 3.125% on a 15 year mortgage, a balance of $180K and only 10 year’s remaining, do you think it is worth refinancing the property to pull out about $43k (after closing) and setting the rate higher to approx 3.375% and a 30 year fixed mortgage?