Posted on: 18th Jun, 2010 10:01 am
Credit Score: 780
Debit/Income: 7%
Property Value: $300k
Amount Seeking: 80%
Length Ownership: 10Mo
Property Purpose: Primary Residence
I bought this property at Foreclosure auction and have been living in it for 10mo. Purchasing at foreclosure auction requires cash. A personal loan from a family member facilitated this purchase. Going in I knew I would need to hold for 6 months as this causes lenders to use appraisal instead of purchase price to establish value. The property is in great shape and would have no problems as far as inspection.
I've been shopping for quotes on Cash-out refis' and every agent has made it sound like this situation is no problem. Yesterday, I visited a US Bank branch and the agent there made it sound like this would be a very difficult loan to get. That I would have to provide documentation explaining the situation. My explanation would dictate wither the underwriter would approve the loan. He went on to tell me that they may come back offering 70% or lower. This particular agent was quite condescending and arrogant. I'm unsure if he is telling me straight-up or doing this as a sales tactic. He went on to brag about his 15 years of experience and how he knows exactly what underwriters want to see, on and on.
My question: Is this true? Will I end up in a situation where I'm providing an explanation letter, original purchase price and etc?
Second Question: Do I understand the process correctly, in that I pay for appraisal, flood cert, etc then the loan gets sent to an underwriter for approval? Is there any way to get an contingent underwriter approval? Ie: “With X credit score you are guaranteed a cash-out refi of 240k or 80% LTV, whichever is lower.â€
Thanks in advance!
Craig
Debit/Income: 7%
Property Value: $300k
Amount Seeking: 80%
Length Ownership: 10Mo
Property Purpose: Primary Residence
I bought this property at Foreclosure auction and have been living in it for 10mo. Purchasing at foreclosure auction requires cash. A personal loan from a family member facilitated this purchase. Going in I knew I would need to hold for 6 months as this causes lenders to use appraisal instead of purchase price to establish value. The property is in great shape and would have no problems as far as inspection.
I've been shopping for quotes on Cash-out refis' and every agent has made it sound like this situation is no problem. Yesterday, I visited a US Bank branch and the agent there made it sound like this would be a very difficult loan to get. That I would have to provide documentation explaining the situation. My explanation would dictate wither the underwriter would approve the loan. He went on to tell me that they may come back offering 70% or lower. This particular agent was quite condescending and arrogant. I'm unsure if he is telling me straight-up or doing this as a sales tactic. He went on to brag about his 15 years of experience and how he knows exactly what underwriters want to see, on and on.
My question: Is this true? Will I end up in a situation where I'm providing an explanation letter, original purchase price and etc?
Second Question: Do I understand the process correctly, in that I pay for appraisal, flood cert, etc then the loan gets sent to an underwriter for approval? Is there any way to get an contingent underwriter approval? Ie: “With X credit score you are guaranteed a cash-out refi of 240k or 80% LTV, whichever is lower.â€
Thanks in advance!
Craig
Most employees of the 'big banks' do come off that way as they are taught that it is a priviledge for the consumers to work with them. For the life of me I can't figure out why consumers keep going back to the likes of BofA, Wells, USBank etc....
Is this your primary residence or a non-owner occupied? If owner occupied this should be no problem at all, if an investment yes the U/W will want to cover her butt with alot of excess documentation compared to a traditional deal.
Don't know where you are located but if you would like us to prepare a couple of quotes for you we would be more than happy.
Is this your primary residence or a non-owner occupied? If owner occupied this should be no problem at all, if an investment yes the U/W will want to cover her butt with alot of excess documentation compared to a traditional deal.
Don't know where you are located but if you would like us to prepare a couple of quotes for you we would be more than happy.
If you are in California, contact me and I'd be happy to give you a quote.