I had to go by my loan officer's place yesterday to resign some paperwork. I recall my loan officer saying he would try to get me a single 100% loan with a big interest rate and no points or origination fees, but I may end up having to get two loans: an 80% and a 20%, and might MIGHT have to pay a point or two. Well, dummy me only listened to the first scenario and not the second. It turns out due to my existing debt, I did not qualify for a single 100% loan, but could only get the two loans (even though my credit score is >740). That part didn't bother me, though. What bothered was (1) I'll probably have to pay a 1% point/fee for the first loan and (2) the interest rate on both the loans are a lot higher than with the first Good Faith Estimate I received from him. Now, I'll have to pay an extra $800-$1,000 of junk fees at closing. also, I was seriously thinking of not refinancing the loan, since the interest rate on my original Good Faith Estimate was at 7.5%. The cost of refinancing alone would eat another $2k-$3k of profit, so I thought I'd just stick with it until I get the place sold. Now, the rates are around 9% for each loan, which will have me rethinking whether or not to refinance (I still have to run the numbers).
I guess what they say about over-estimating costs is true. It seems as time goes on, I'm having to fork more and more money over for this particular property. I just hope my repair cost doesn't get out of hand. :-/
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More bad news. I just got a call from the underwriter at the loan office, and she says the lender is requesting a survey be done. So, now I'm looking at another few hundred bucks down the drain. Sheesh!
I managed to rerun figures based upon all the bad news I got these last coupl of days, and I can still manage a $10k profit if I hold the property until October (more, if I sell it sooner), so I shouldn't be in panic mode at all. I just hate all these fees coming at me all of a sudden. I realize going with a HML will require a substantial amount more in points and whatnot, but these fees sure cut into any profit.
I need to find a PML or set up an investor-managed LLC like Shaun has to alleviate a lot of these garbage fees. I figure my worst case will have me paying almost $22,000 in fees and commission. a smidgen of that is hard to avoid (like title work & policy), but that's still about $21k out the window.
I called my loan officer earlier and the lady there said the survey will be $433. Ugh! I had figured about $350 tops, but $433!!! That's crazy! The good news was she said the two loans do not have a prepay penalty, so I can scratch over $2k of anticipated costs from my refinance estimates. she also said the title company sent her a revised contract showing the purchase price as being $2,525 less than what was originally quoted. I told her that was the "Net to HUD" price, and didn't include some other things. I'd be happy knowing my final price would be $2.5k less, but I;ve already learned not to get my hopes up. :-/
Don't forget to ask your escrow company to give you investor rates, if they have them!
Don't forget to ask your escrow company to give you investor rates, if they have them!
Don't forget to ask your escrow company to give you investor rates, if they have them!
Thanks Shaun. I'll try, but it is my understanding HUD dictates who the title company will be. Not sure if they'll swing a deal with me or not, but it doesn;t hurt to ask!
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