My mother got pre approved for $750,000 NYC. I told her about the brrrr method. What’s the next step (frozen). I think I’m frozen by the “amount “ she might get to work with.
@Troy Greaves Hi Troy, Are you planning to partner with you Mom to brrrr a property together? Seems like the next step would be finding an agent & starting to look at properties.
@Tracy Uscinski hey Tracy, yes we are gonna be partners for this property, regarding the loan will they only provide enough for the house and the rehab or just the house?
@Troy Greaves Hi Troy, it depends on the type of loan you choose. The FHA 203(k) loan allows you to roll renovation costs into the loan. There may other similar loan products available in your market. If you haven't done so already, ask your mortgage broker to go over the options with you. If you're not working with a lender/mortgage broker, ask your Real Estate Agent to send you names a few mortgage brokers they'd recommend.
I'm speechless... almost.
@Troy Greaves , with respect, please listen: just because your Mom got pre-approved for $750K doesn't mean you should just go out an pull the trigger. That's some serious dollars, and you need to be an expert in the market area you choose to invest in BEFORE you make that commitment.
Also keep in mind, a pre-approval is barely worth the paper it's written on. Actual loan approval is always subject to underwriting. Slow down, take your time, inspect dozens of properties so you really know the market, then proceed. Anything else would amount to a very costly crapshoot. Are you feeling lucky?