Exit Strategy - Non-seasoned Cash Out REFI
Ok. I found the deal. Did the repairs. I need to get three non-seasoned cash-out refis done ASAP . Stated Income, Stated Assetts. Two of the units have documented repairs, the third didn't need any work, I just got a good deal. I am thinking to spend the next couple of days giving my "loan package" to mortgage broker after mortgage broker and bank after bank until I find one that has a loan at a reasonable price that will work for me. I will then get those brokers working on getting the loan approved and go with whomever can close the quickest and does what they say. Has anyone done this type of "shopping"? Potential Negatives? One broker pulled my score Friday. How much longer do I have until my credit will get dinged for mortage inquiries?
JohnCl
I would definatly pull your own tri-merge report with scores (or get a broker to give you a copy of the one he/she pulled). This will save on inquiries.
This type of shopping is good and may or may not yield results. Make sure you develop a nice, professional loan proposal and include all documents that the lender could ask for.
GOOD LUCK and make sure to report to us how things go!
I just fell into that trap. four weeks ago I had a715 middle score and due to inquiries it is now down to a 694 middle..ouch. I tried that approach of pulling my own tri merge but most lenders said they have to pull there own and can not pre-approve based on mine. this really bothered me but they wouldnt tell me anything unless they did. then they told me if you pull credit from the same line of buisness(real estate) then it will not count against your score, that was really wrong and I have the credit reports to prove it. bottom line is you are gonna have to get tough with these lenders and tell them to pre-approve you based on whatever you know your credit score is. tell them if when they pull it and it is not what you said it was then you will happily understand why they cant get you the loan, but you are gonna have to do it that way. and dont be fooled by someone who sounds like a good lender and so you trust them with pulling it, I have had several brokers say one thing and after they pull my credit they cant get the loan done(even though my score was what I told them or better). so good luck and be careful.
DON'T let everybody pull your credit, I had a coustomer two months ago that was out car shopping over a weekend and let ever car dealer in town pull her credit and it went from 680 down to 547 she couldn't believe it, and could not get a good enough rate to be able to afford the payment and will have to wait untill the credit goes up again.
Lenders do not have a choice it is madatory to pull your credit in the companies name, after 9-11 there was alot of rules to go buy that are part of the patriot act that you just have to do, although I only pull one credit company just to pre-qualify and then later after we get an approval on the loan pull a tri-merge so as to not ding the credit score.
There are companies out there that do non-seasoned loans. The more paper work you turn in the better quotes you get, could you come up with bank statements? They can be used for full doc thus giving you a very decent rate!
Check my profile for more info.
Good Luck,
Robert
You sound like you are in a bit of a bind. If you shop as you have discussed your credit will suffer and you will likely be in more of a bind without the financing.
I have not tried this but...
Ask if the mortgage broker will request the request for the credit report to be deleted if you do not go with them. I know that lenders can remove negative items if they so choose. Not sure if a enquiry can be removed. Otherwise they will be around for 2 years. Most of the impact from an enquiry will go away from the numerical score in 90 days or so.
If you are in a bind you need to look at alternatives. It will be much less profitable but... HML, equity partner who can join the deal, a retail sale that is completed quickly.
You might have received good deals and done well so far. You need to finish the process before counting the profits. Hence some of what you expected were you paper profits will either stay paper profits of will becomes costs to get the cash out.
How about indicating your position in each property so folks here can provide some more ideas once we know the LTV, your long term plans, and your time line.
John
[addsig]