Rehab Second Loan

I am waiting for a second mortgage on a rehab and it is taking along time, four days. What is the appropriate amount of time to wait for a second loan?

Edited: 06/26/2010 at 03:55AM

Scott Miller

Real Estate Lender

642 posts
2 awards
50 influence

Aug 24 '07, 01:33 PM

When you say " second loan" do you mean " second draw" ?

If so, 24-48 hours is the standard turnaround for most HMLs...

Regards,

Scott Miller

Edited: 06/26/2010 at 03:55AM

Account Closed

3,396 posts
3 awards
50 influence

Aug 24 '07, 06:42 PM

Originally posted by "shirleyh"

I am waiting for a second mortgage on a rehab and it is taking along time, four days. What is the appropriate amount of time to wait for a second loan?

A long time? It depends on what you mean.

What are you waiting for? Did you apply for a new loan and that loan will be in 2nd position? 4 days would be pretty fast for most new loans that are in 2nd position.

If you are talking about something else please clarify.

John Corey

Edited: 06/26/2010 at 03:55AM

N/A N/A

49 posts
1 award
50 influence

Aug 24 '07, 08:58 PM

It will be another property, other than primary so I thought second loan?

Edited: 06/26/2010 at 03:55AM

Brandon Brannan

Real Estate Investor · Memphis, TN

7 posts
50 influence

Aug 24 '07, 11:14 PM

Originally posted by "shirleyh"

It will be another property, other than primary so I thought second loan?

Shirleyh... On all of my deals with conventional financing, it took over 2 week to close. Especially if you have other properties with a mortgage. Even with my HMLs the process is still over 4 days. So 4 days is not long at all, that's only my opinion. If you are talking about a pre-approval then it is a long time. I would call your loan officer to see if they need any additional documentation from you or ask what's the status of the approval.

Edited: 06/26/2010 at 03:55AM

Scott Miller

Real Estate Lender

642 posts
2 awards
50 influence

Aug 24 '07, 11:19 PM

That brings it into focus---so you have applied for a mortgage for the rehab of a investment property, right?

Assuming so, hard money lenders tend to fund 3-4 days after appraisal/title work is complete and conventional lenders will take even longer.

Are you in the application stages or have you already been approved?

Regards,

Scott Miller

Originally posted by "shirleyh"

It will be another property, other than primary so I thought second loan?

Edited: 06/26/2010 at 03:55AM

N/A N/A

49 posts
1 award
50 influence

Aug 25 '07, 06:10 AM

I havent gotten the approval yet. I waited four days so far. I am wondering how much longer do I wait?

Edited: 06/26/2010 at 03:55AM

Scott Miller

Real Estate Lender

642 posts
2 awards
50 influence

Aug 25 '07, 06:44 AM

In the absense of knowing who the lender is, it's difficult to determine if what you are experiencing is SOP (standard operating procedure)---I work with investors that will issue a POF in 24-48 hours with min. information on the borrower/property, while others take longer as they quantify the merit of the deal.

In either event, it is not untowards to ask when you can expect the investor to be completed with the review.

Regards,

Scott Miller

Originally posted by "shirleyh"

I havent gotten the approval yet. I waited four days so far. I am wondering how much longer do I wait?

Edited: 06/26/2010 at 03:55AM

Account Closed

3,396 posts
3 awards
50 influence

Aug 26 '07, 04:55 PM

Originally posted by "Shirley"

It will be another property, other than primary so I thought second loan?

Shirley,

You only know enough to be dangerous. Maybe my post will sound like tough love. It is important for you to learn more quickly before you get yourself into trouble. :violin:

A second loan is a phrase to describe situation where there are two loans secured by the same property. The second loan is the junior loan, the one in 2nd position.

If you have two properties and you apply for a loan on the one that is not your primary residence that would not be called a 2nd loan just because you have 2 properties.

From application to funding can take weeks. Or it could be quicker. Lots of variables so hard to say exactly. Your application might be declined so there is no way to predict if you will get a loan in a specific amount of time given the information you have provided.

John Corey

Edited: 06/26/2010 at 03:56AM

N/A N/A

49 posts
1 award
50 influence

Aug 27 '07, 06:25 AM

Okay, so you saying the average time for another loan for another property is a few days?

Edited: 06/26/2010 at 03:56AM