All Forum Posts by: Jason Wray

Mike,

There is no specific time period associated with taking the first steps. If you have good/fair credit and have 10-15% down for an investment or second home then pull the trigger now. If you do not have the funds but own your own home you could do a cash out refinance or HELOC and pull out some equity/cash from the home to use for the down payment (DP). Keep in mind out of state purchases are allowed as well and you might even find a better deal. Maryland can be on the high end pricey side in many areas now a days!

That is where a second home can come into play where you can put 10% down. You can still use it as a STR and rent it out throughout the year and visit as well. It can also be transitioned into a long term permanent rental as well down the road or within the same year you purchased. There are also a lot of good realtors and bank REO attorneys that have a lot of distressed and pocket sales. If your going to use financing i would also strongly suggest finding a great bank that offers both traditional and Non/QM Portfolio loans. Get a Pre-approval so you know your Max loan amounts and options!

Abdul,

Before you buy in any state just check to see if it's an attorney state.  Keep in mind even if it is like New York for example you can still waive the attorney and use the title attorney for both sides (If  financing is involved).  

Armand,

This is an example where using a Bank or Direct Lender (Fully Delegated) can save you a lot of "BS" aka - Junk fee's!  You should not be getting beat up over broker fee's on top of origination (Plus margin built into rate).  You also have have to be careful of title junk fee's they exist and it may make some title companies angry but they charge for some unfavorable line item fee's.  Shop the title companies on all refinances and ask for a "leaner fee sheet" EVERY time you see those title fee's above that nickel and dime you to no end!

No, FHA is 3.5% down. Once you refinance the current FHA loan into a conventional loan you can buy another home using FHA 3.5% down. Might be a case of a rookie loan officer or misunderstanding of occupancy.

Marco, the window is actually open within a 45 day period so long as you close on a mortgage.  if you do not close it will impact your score just like any multiple inquiry pull would.  There is also a hidden red flag that  a lot of lenders/banks do not shre is that underwriters will question and possibly red flag a file with excessive credit pulls from multpiple lenders.  They see it in some cases as a risk as to why did so many lenders pull and not close.

A HELOC is not a mortgage it is an "open end" liability like a credit card. These are reviwed differently and can be more of a hit to credit.

Yashar,

Most lenders need you to sign the intent to proceed so they can offer the locked LE loan estimate.  Some lenders charge an application fee so it would all depend on if you gave them a credit card.  My advice is to stay away from smaller lenders or brokers and lock with a Nationwide Bank who is fully delegated/Direct Endorser.  Typically if you have good to excellent credit you will get the best rate without paying points or broker fees...

Melissa,

I was just on a call about this style mortgage with one of investors in theory it helps pay down the mortgage faster with less interest.  Strange style of investment but what ever works for the consumer and best for overall time.

Nate, 

You can go FHA and put 3.5% down if you do not already have an FHA loan if not it can be a sticky situation. I have seen deal get into underwriting and get turned down after paying for inspections, appraisal etc. Only because the banker/loan officer did not explain the loan up front. You need to know which program you are going to use and the guide lines in order to get it approved.

Keep in mind first time home buyers programs are for 'First time" and underwriters are trained to watch for REI activity.

Paul,

Value have gone up since last year and it might be a good idea to see if you can lower your current rate and take out some cash again on a refi. A lot of HELOCS carry a higher adjustable rate and are not very favorable when trying to secure new REI properties. They are a debt not an asset and may hurt your DTI or be looked at as higher risk with excessive trade lines.

Keep in mind since COVID there are a lot of new guide lines that banks/lenders are not having to use to try and approve for new financing.

Justin,

Unless you are going to be them for a Veteran loan I would suggest getting other quotes.  I have them as well and they have a lot of "overlays" and some tough guide lines.