Hi,
what should I ask for when getting a loan so these people dont charge an arm and a leg with points fees and all that hidden info they never tell you about???
Here is why: buying a 3/2 for 70k, comps about 135k. Goal on this perticular house is to do light rehab (6K) to get a renter in and hold for long term.
But need to buy with hard money then throw a regular loan on it to hold.
only want a loan to recoup my loss say total 80k ish. Goal is to have this and others paid off some day.
Can I get 100% financing or what is the best way to go, I dont wanna have to come outta pocket to geta loan. 80/20. I know nothing about these things so any help is appreciated. Mostly dont want the lender to make a killing off of me, so how do i educate myself on these?
There are a handful of lenders offering non-owner 100% financing (I assume you are buying as investor). You need to have FICO over 700 usually and be able to document your income to qualify for the loan.
Best way to make sure you are not getting scammed is compare quotes from different lenders 3-5. Compare a “Good Faith estimate” from each one of them and that will give you a starting point to see where the market is for the type of loan you need.
Make sure they don’t all run multiple credit checks or your FICO will suffer. Find a mortgage broker that you feel comfortable with and stick with him. If you do this business for a living, that may be one of your best assets, a good broker relationship.
Hey im a Mortgage Broker in the NY area and i have alot of experience in this. Like the previous post mentioned just ask for the good faith estimate and find what the rate and terms would be. Included in this estimate is also an itemized list of all the expenses that will be accumulated in the loan process. Most brokers charges between one and three points so anything more than that u should try to move on. Also plese be aware that all these quotes are very time sensitive and if you shop around too much your rate may change because your fico scores may have dropped in the process. Its best that if you dont like something in the estimate just tell them how you feel about it and work it out.
If you are going for 100% financing you will need good credit and income. Some lenders will allow up to 6% seller paid closing costs. Find a good Lender/Broker and stick with them. Dont get cought up in points 1-3 points is fair. Look at your Good Faith ask questions and remember your lender can be your best friend.
