All Forum Posts by: Stephen Gibson Jr
Stephen Gibson Jr has started 2 posts and replied 4 times.
Post: New construction timelines for financing
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Quote from @Jason Wray:
Stephen,
Be very cautious because that makes little sense, meaning you qualify a borrower for a construction loan up front prior to the work being done or the start date. The reason you do this is to qualify them up front so you can run and assign the approval, lock the rate, approve the builder, review the Blue print, cost analysis and more. If the loan officer told you something up front and now they are failing to restructure the loan or telling you to "Wait" that is a bad sign.
Also please understand Banks & Lenders do not have a "Talk to the manager" clause when the customer or agent is unhappy. What I mean is you cannot argue or demand a loan be approved based on being unhappy if the loan officer made a mistake. If your DTI is to high or any other reason for denial there is "No manager" that can give you or your agent a "fix".
Unfortunately, a customer or realtor can never have a conversation with a bank/lender where it will resolve a loan issue. Only reason I mention this is because you may want to get away from that lender to not lose earnest money. It's fairly common in the lender business that 75% of loan officers "Do Not" have construction loan training or experience. Instead they tell the client "Yes" they can do it but then rely on their processing team to see if it will work or be approved.
Construction loan programs are not easy you cannot just do them if you do not fund them regularly without proper training. My advice get a second approval or opinion and do not let time pass.
Ok understood on the talk to the manager idea.
To clarify, its a pre built new construction... its apart of a pre-planned townhome complex (10-12 units) small builder, they just finished dry wall phase. They pre qualified me based on my income including 75% of the projected rental income from my departing residence. I guess my agent is just surprised they are requiring the lease agreement now when they projected close isnt until mid April. I get that maybe the loan officer just hoped it would be fine but I'm hoping the seller will still let me proceed since I still have the financing they just wont finalize until closer to closing/when I have the lease agreement in place. They also said they underwriting timeline is too far out (2.5 months away)
One question I have is how soon have you seen lease agreements for departing residence ? I still need to live here until I can move into the new place.
Post: New construction timelines for financing
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Hey there,
I am currently in the process of buying my first property, I have an offer accepted on a new construction that is estimated to be completed in April. I have paid the earnest money and some lender fees.
My current primary is a townhome that I inherited without a mortgage, I will be renting out this property and using the rental income to pay the new mortgage. I will need to live in the property until I can move into the new house. They will be using a percentage of this projected rental income to help me qualify for the new mortgage.
I had pre qualified at an amount with a lender and made the offer based on this, the initial loan officer told me that I would need to show a 1 year lease agreement for the departing residence closer to closing which I am projecting to be around mid April (could be delayed since new construction anything could happen). He said they don't have to be moved in by closing, just that I need the signed 1 year lease agreement.
However now the underwriters are saying they need the lease agreement now when I have just begun doing the necessary repairs and still need to complete township inspection process, based on the information from the initial loan officer stating I wouldn't need it immediately. They are asking that I re-apply for the loan once I have the lease agreement and we are closer to the close date. Which I personally am okay with but I am not sure if the seller will be.
My realtor wanting to speak with a supervisor at the bank to see if there is anything they can do for us, especially since the initial loan officer said we were good to proceed as is and I wouldnt absolutely need the lease agreement until 15-30 days prior to close.
The bank reiterated that I still have the financing and the pre approval still stands however that its too far out to finalize the loan (I guess since I dont have the lease agreement).
Currently I am fixing all of the stuff in the house and preparing to get my township rental inspection completed.
Does anybody have any advice or insight for me ?
Thanks for reading
Post: Looking for lender that will consider projected rental income
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Yes I inherited my current primary without a mortgage and will be renting it out. Its already in my name so I've been told I wont qualify for first time home buyer status
I have talked to several who just needed a one year lease agreement in place prior to closing, same with the lender I talked about in the post.
Post: Looking for lender that will consider projected rental income
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Hey there, I am looking to purchase my first property. I have my offer accepted on a new construction ($450k sale price, 90k downpayment, primary residence) that should be ready around mid April 2024. I have townhouse that is my current primary and I will be renting out.
I am looking for lenders who will add the projected rental income to my w-2 income. This will be my first experience as a landlord though I have a solid team in place (realtors in family) so I'm confident I will be successful.
I am working on getting the lease agreement in place however since I am unsure exactly when the new construction will be finished, I am running into some minor issues with my current lender. Initially the loan officer told me I would have until closer to the actual closing date (30-45 days) to have the lease agreement in order, however now their underwriter is asking for it now. I will still be living in the house until I can move into the other house.
Please shoot me a message if you are or can refer me to lenders/brokers who consider projected rental income (w/ lease agreement).
Thanks for reading