Financing a real estate investment deal

Financing a real estate investment deal

Real Estate Investor · Chicago, IL · Member since 2015 · 52 posts · 9 votes

HELP PLEASE!!!! I went to a mortgage broker that was recommended by the real estate agent i was working with in January,I went thru the prequalification and was approved for the loan with a max of 160000 dollars including rehab. Now it is April, I found a property signed a contract and this loan officer calls the next day to say that the product was for  single family only .Never was single family brought up in the nearly 20 times we communicated,or did the prequaification sheet he emailed to me state single family only,our conversations were about investor rehab loan.He said that he could get another product for me but I need 10% more down to make it 25% of purchase price.I ask for the details of the loan in writing and he has not sent them yet from all day yesterday 04/28/2017and now04/29/2017 half the day gone today.I have signed the contract and it was accepted and all my finances are a mystery,because I don't know what this new product contains and if i can afford it or if i should want to. I can't explain my hurt feelings ,the lack of trust I feel and the disbelief ,I worked hard to get to this point not to know where this is going to lead me, I can not stop the tears from falling ...I know there's no crying in Real Estate.(I think )..but this hurts .This broker even talked to my R.E Agent and the seller's Agent prior to the seller accepting my offer,which the seller had multiple offers.Do I have any recourse?,

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  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    Recourse on the Mortgage broker? No. Make phone calls to as many mortgage brokers and banks as possible on Monday and send the top 3-4 the information they are requesting. You ran into a lazy/sloppy mortgage broker - it happens and it won't be the last time someone doesn't think about you first.

  • Lender · Morrisville, NC · Member since 2015 · 610 posts · 131 votes
    9y

    You have no recourse against the broker.  Financing products change all the time pre-approvals expire faster than milk on a hot day.  They are only good at the moment they are written.  I know that stings but it is, after all, part of the game.  It sounds like your broker only has a few products at his disposal.  If you still want to close the deal you'd need to find a financing product that fits.  That means find a broker that is connect with enough lenders so that he/she has the flexibility to utilize multiple products and set you up with something that works for different situations.       

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