I'm under contract for a 3-family in Irvington, NJ. Went under contract in April 2018. Finished attorney review. Finished Inspection. Finished negotiations. Currently obtaining investment mortgage as property will not be owner occupied. Simply wanted to post loan figures and get any input as this is my first time reviewing loan documents.
Any help is appreciated for potential pitfalls. And what I should/might expect with the Appraisal, which should be within the next 2 weeks.
LOAN TERM: 30 years
PRODUCT: Fixed Rate
LOAN TYPE: Conventional
RATE LOCK: No
Loan Amount: $202,500
Estimated Taxes/Insurance: $658 monthly
A. Origination Charges - $1585
Application Fees $1,290
Commitment Fee $295
B. Services You Cannot Shop For
Appraisal Fee $600
Appraisal Re-Inspection Fee $200
C. Services You Can Shop For
Title - Administration Fee $10
Title - Closing Protection Letter $75
Title - Deed Prep Fee $60
Title - Document Signing Fee $155
Title - Electronic Doc Fee $5
Title - Endorsements $125
Title - Lender's Title Insurance $1,018
Title - Municipal Searches $175
Title - Settlement Fee $500
Title - Title Review Fee $195
D. TOTAL LOAN COSTS (A + B + C): $4703
E. Taxes and Other Government Fees
Recording Fees and Other Taxes $436
Transfer Taxes $1,482
Homeowner's Insurance Premium ( months)
Mortgage Insurance Premium ( months)
Prepaid Interest ($28.50 per day for 17 days @4.75 %) $485
Property Taxes ( months)
G. Initial Escrow Payment at Closing
Homeowner's Insurance $100.00 per month for 2 mo. $200
Mortgage Insurance per month for mo.
Property Taxes $558.00 per month for 2 mo. $1,116
Title - Owner's Title Insurance (optional) $255
I. TOTAL OTHER COSTS (E + F + G + H): $3974
J. TOTAL CLOSING COSTS: $8677
@Christopher Figueroa congratulations on moving forward! The loan figures seem standard for a purchase in this area. The appraisal will be ordered by your lender and that will give the appraiser's opinion of the value of the home, which is what your mortgage company will base your loan on. They will loan a percentage (usually 75-80% on an investment property) of the appraised value or contract price. Good luck!!
@Dan Barli , thank you for confirming this looks good. much appreciated.
I'm also trying to get my first loan and here's the best figures I've gotten so far so those look pretty good to me. I'm under contract for a 6 family in Asbury Park, NJ.
Who did you go through for the lender for 4.75% on a multifamily investment? Best I'm getting currently is 5.6%
4.75% on a non occupied multifamily is a great rate. Also wondering which bank you used @Christopher Figueroa.
I've been waiting to get a rate lock before passing along the mortgage broker information. Unfortunately, now I am being quoted 5.5% with a rate lock.
@Christopher Figueroa hey how did this property turn out?
Unfortunately, the seller had multiple outstanding fines/penalties that he failed to pay for many months and refused to do so to complete the closing. Ultimately I was advised to offer the seller a buyout option to cancel the contract, which he agreed to, and ultimately only paid me 50% of the amount.
I'm no longer in contract but do have a lien on the property for the amount he owes me. Sadly, it turned out to be a complete waste of time for all involved due to the seller's unwillingness to complete any of the tasks required and failure to pay his outstanding debts.