All Forum Posts by: Stephanie Medellin

Not too many loans available for vacant land, so I'm not sure you'd even be able to borrow much against them unless you are planning to build.

@Casey Sbrana. What is preventing you from finding a lender?  Is it loan amount, seasoning period for cash out, or not being able to qualify for the loan because of debt to income, credit, or other issues?  Or will the property not have enough equity?

I think you already clarified things based on a post below, but you’re not getting the whole loan approved before making an offer.  When you get pre-approved, the lender is looking at your finances and determining whether you can qualify for the amount you need.  

The scope of work for the property and estimates will be handled during escrow, although you should have a rough idea of what needs to be done and what it will cost.  

A lender will never fully approve your financing before you’re under contract for a property.  Like you mentioned, they need to review the rehab estimate and order an appraisal for the the value of the house with all of the repairs that will be done.

@Bryan Dumesnil  This isn't the answer you want to hear, but you're just going to have to apply to get pre-approved and go through a credit check if you want to present offers with a pre-approval letter!  If you don't get this property you will be ready for the next one.  Sellers want to know you can close.  If you're looking at properties in the $30,000 - $40,000 price range, you may want to apply for a renovation loan to fund the repairs.  You may need that extra amount to meet a minimum loan amount for many lenders.

If your scores are great, you should have nothing to worry about regarding a credit inquiry.  If you are in the high 700s it makes absolutely no difference if your score drops a few points.  

Depending on your state's standard real estate contract, it may or may not be a good idea to submit multiple offers simultaneously if you have no intention of buying more than one property.

@Joe Edwards-Hoff  Yes I believe conventional financing won't allow income producing agricultural property.  Either way that sounds like a nice property!

@Edgar Figueroa Yes, are you trying to purchase or refinance?

@Habbak Burs  When a lender advertises no closing costs, they are building the closing costs into the interest rate.  It's possible to do this anywhere, but the amount of "rebate" or "credit" available needs to be enough to cover costs.  Generally the larger the loan amount, the easier this is to accomplish.

You should ask for both options and see the difference in interest rate.

Only for owner occupants.

Thanks @Debra A. - I'd be curious to know the lender if you want to pass along the information.  Feel free to PM me. 

@Tashina Taylor  You should definitely look for financing, find out general terms and whether you will qualify first.  You need to know if you meet the credit criteria, have enough reserves, and have sufficient income (whether you're using your own personal income to qualify, or if the property needs to cash flow a certain amount).  

Knowing the lending criteria will allow you to look for deals that will fit.  Just as an example, maybe you can only finance 75% of purchase price with a 650 credit score, but can go up to 80% with a 700.  (Something like this may come up more with alternative lending options that with a bank.)  That's something you would want to know before looking at property unless you have a substantial amount to invest.