How to shop around for cash out refi?

Question

For those of you who have successfully done cash out refi, which bank did you use and how did you make sure you got the best appraisal? Any insight/feedback would be greatly appreciated!

Mike Lambert · Answer

Account Closed

Yes Spain is a great place to invest (as for living, it's a question of tastes and personal objectives). I'm not sure why you're posting that here since banks in Spain generally do not do refinancing.

Be careful of cheap properties though. Spain had a huge real estate bust as its real estate bubble (much bigger than the US one) deflated during the financial crisis. As a result, you could buy quality properties at bargain basement prices starting in 2013. This game is pretty much over, as prices have had a strong recovery since.

You can't just buy indiscriminately anymore. You have to find deals and know what you're doing. Most of the foreclosures were taken over by the specially created bad bank SAREB and they still have a huge inventory. To have access to those, you normally need to be a hedge fun. My investors and I get access to their inventory to one of my local connections. Some banks still have foreclosures of their own and we get access to date through my contact as well. The thing is you have to be able to find the jewels there. There is a huge amount of cheap properties but most of it is junk. However, if you find the right ones, you can make a lot of money. It takes the right knowledge and connection.

So yes, Spain is a great place to invest but know what you do, and if you don't, associate with people who do. And beware of the cheap junk!

CJ M. · Answer

I agree with Jerry. Keeping a record of renovations is great advice. I've had both lenders and appraisers say to me "why do you think it's worth $XYZ when you only paid $ABC for it 30-60 days ago?" Boy that makes my blood boil! Nowadays I provide an itemized list of renovations and their costs, as well as before and after pics (taken professionally).

John Warren · Answer

@Henry Wang it is really all about your "team". I have used the same lender for all seven of my conventional loans, and as an agent I refer him all my business. We always coordinate together to make sure the appraiser has the best comps I can pull. I typically meet the appraiser when I have a refinance done on one of my properties, and if one of my clients is getting one done I put together a packet for them with all the comps. I also write a lot of notes down about the comps as I have actually been inside of them while helping buyers. I have found this to be a very effective way to get the value where it should be based on the market.

Nicholas Covington · Answer

@Henry Wang the "best appraisal" doesn't really exist and if it did that person probably shouldn't be licensed anymore. I find the best way for investors to get the most out of the appraisal is to provide some competitive comps to the appraiser. There is a right way to do this and a wrong way to do this.

Jerry Padilla · Answer

@Henry Wang

I agree with @Nicholas Covington There are many different appraisers that may be choosen for a file and we have no control on who that is. What I always recommend to clients, especially if it has been less than a year out from purchase is to keep records of the renovations done to the property and make the appraiser aware, of all the renovations done to the property. If there is an appraisal done that the client isn't happy with - and it happens, than as @John Warren recommends, you can take a look and send comps to the appraiser that you feel are more comparable to your property versus what the appraiser used to attempt to increase the value given by the appraiser.

Michael Forbes · Answer

If you are just looking to shop for the best rate, check out credible.com. They don't spam you or sell your information.

For an appraisal, like other people said, keep records. Also have someone attend the appraisal on your behalf to point out the improvements and best features of the place. Too often, important details go unnoticed.

Federico Gutierrez · Answer

Apparaiser are not selected by the lender. Not like Lender A can call up his buddy Bob who is an apparaiser and he'll get you the best comps. Your just client XYZ to the apparaiser who charges you $500 for his best guest of the house value. Keeping a record of what has been renovated does help thou

Samantha Marizius · Answer

As far a I know it must be a national bank. I made it through Bank of America

How to shop around for cash out refi?

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