All Forum Posts by: Caroline Gerardo

Loan of $50000 has same bottom level flat fees that $200000 does. Cost is much higher to finance under $150000 sales price. Title, appraisal, recording, insurance fees have the same floor of minimum costs. Getting insurance on lower cost is also a pickle. 

Our government has laws restricting lenders from closing loans that are small loan and high cost so many will not touch these even if investor. Look up HOEPA and High Cost laws. The laws apply to owner occupant but puts fear of regulation into any lender. 

The cost of all the vendors to process a loan: credit, audit, LOS, tax, Underwriting, processing, verifying every piece of paper is a range of $9000- $11000 per loan. 

Though it doesn't make sense, it's the reality today.

Good luck getting them to pay your fees last second. Wire the check or your deal doesn't close. The Escrow Officer sent you FINAL settlement dollar amount in writing often they have a pad of $200?? The dollar amounts change daily as items are charged as divided by a 30 day month. I assume the affidavits are about you. Seller's affidavits about BK,  liens, taxes, no new liens in last days should have been ready to go yesterday. Today is a short day because of Good Friday so wire and complain later or you won't be closing until Monday with more funds needed.

7% rate is WAY TOO LOW for the risk your Mom takes. Rate should be 14% and let them pay her off when or if they ever qualify for a mortgage. The cost to foreclose can be $100000 and the property can come back to her damaged or burned to the ground. What guarantee do you have they will carry sufficient hazard insurance?

Title company cannot give Realtor/agents anything more than a three dollar cup of coffee with their logo on it. Seller may reserve right to pick title company. Title is regulated nationwide by the dollar amount it's all the same. What differs is if you use an attorney- those costs vary greatly. Escrow or settlement can also vary a little bit but it's all the and a' fees that vary: CPL, deeds, HOA docs, any special lender requests, troubled payoffs, insurance documents...

A $200000 purchase with $175000 loan here is general estimate :  Buyer $714  Seller $1073 Going smaller sale price won't reduce the costs much as some fees are minimum floors.

Good luck finding your first commercial loan that does not report on your social security number (ie: your name). 

You need two years of income history or recent college degree with employment, and about 4% cash of the sales price in checking/savings for 1-2 units. You do not need or want to finance a car.

10 unit multifamily is considered a small commercial loan, which limits your choices. 

Office is a different type of loan. You need high occupancy for office which in today's market is not always the case.

5-8 units you can get 30 year terms. Ten units it will be either due in five or seven years. 

What type of property? 

In advance: know what credit score, income, and equity are needed before you purchase to be able to achieve this every five years.

Value of house and amount owed on the reverse/payoff is needed to help you. If you have to pay the relative half of the equity we need to know how much equity exists. Is the other heir willing to receive their 50% after selling costs (commissions/title/tax/etc)? You need a written agreement with the other party before you start the process. 

You have 12 months from death of reverse borrower or you need to write to servicer of the loan for an extension which gets you 24 months. 

To do a cash out owner occupied refinance you need to be living in the house and have job in proximity, is this the case?

You have a conventional first mortgage which likely does not line up with selling the property to a LLC. Get permission from the lender before you do the transfer deed. You cannot assign a conventional loan you are not the trustee or owner of the note, only the borrower. Also property taxes jump, fire insurance also increases...

Title insurance doesn't transfer when you change the deed to LLC.

You  gifted amounts to son but did your CPA actually set this up?

You set up LLC to be anonymous but the transfer deed has your name, son's name, your address as public records so changing the title doesn't keep it a secret.

Is daughter applying for aid or grants? You won't want to give her big tax consequences... talk to your CPA and tax attorney.