Investment Mortgage - Irvington, New Jersey (Essex)

9 Replies

Hi All,

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
PURPOSE: Purchase
PRODUCT: Fixed Rate
LOAN TYPE: Conventional

Loan Amount: $202,500

Interest: 4.75%

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

F. Prepaids

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

H. Other

Title - Owner's Title Insurance (optional) $255

I. TOTAL OTHER COSTS (E + F + G + H): $3974


@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!!

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.

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.