Some lenders are not ready to work with Investors

[Jay J.]

Recently was trying to do a cash-out refi on this property. And have been working with this lender for the past 2 months. 

Now I am so frustrated that i am thinking if i should close on this loan at all.

1. This lender never heard of Actual Cash Value insurance policy so they "forced" me to change insurance to replacement value based policy, increasing the premium per year by more than 600 USD

2. The appraisal cost is $650 (WTH!!!!)

3. Despite the fact that I have fully paid one year of insurance premium, i have fully paid 6 months of real estate tax, they still require me to pay 3 months of tax and 5 months of insurance premium at CLOSING , AND escrow the tax and insurance each month.  

I have 750+ credit score, I have strong and stable W2 income, I am the best credit banks are fighting for, yet this lender is giving me challenges every turn of the process and i am so frustrated with them now.

Thinking about not close on the loan, i don't need cash now anyway. 

Sorry for the venting. Maybe I am asking for too much, but as investor, I am putting my own money to work, every dollar counts. I am not going to pay someone $650 to do such an appraisal when market price for such appraisal is $450. 

If you think I am too unrealistic and unreasonable, tell me so I can learn my lesson. 

[Stephanie Medellin]

@Jay J.  1.  In my opinion, actual cash value insurance is awful, but sometimes it's all you can get (I've found that with vacant properties.)  I would never voluntarily choose that if I could get replacement value.

2. Is this a multi-family building? Those appraisals cost more than single family homes, and $650 is not unreasonable. If it's an SFR, then yes it's high.

3. Are you over 80% LTV? Requiring impounds is standard practice if you're over 80%. If you're under, you should have a choice.