preapproval problem...

This message mat be crossposted in other groups, if so, sorry, I'm just
trying to get a quick response....Thanks in advance

So here is the deal. We own a house with about 40k to 80k in equity
(waiting on appraisal now, should be done tomorrow)....We are in the middle
of refinancing that house, to get a rate of about 1.75 percent lower.

We have decided that we need to move to the other side of town quick
(family obligations have us driving approximately 100-200 miles a day)....so
here is our plan.

Get a HELOC on the house, after the refinance, use that for down payment
on a new house, obtain another loan...

So in short...refinance current house, get a heloc, find property,
obtain financing, move, rent out original house....

Problem:

We have found a property we like, but we cannot obtain a pre approval
letter from the loan officer. He says he doesn't want to sign his name on
anything that he cant guarantee. My real estate agent says without this
letter, our offer wont be accepted....

My middle score is 704, and we are doing a stated income loan (I am
self-employed), and will be doing another stated income on the second
house....

What do we do? We thought about backing out of the current refinance,
and then just getting a Heloc, and obtaining the second loan. Problem,. is
we don't reduce our interest rate on said property, and it will cost us
about $100 a month more, and we are very limited on our budget....Also,
since we will be moving, refinancing the original house again at a later
date will mean, either we lie about it being a primary residence, or its not
worth doing, since it will be considered investment property..

What would you do? We really need to move, Ive considered renting also.
Main goal, is we have to move, before we drive ourselves crazy with all this
driving.


Again, Thanks again....

Re: preapproval problem...

Depending on your state,(make sure I am licensed there), I could get
you approved, a letter, and probably a better rate. As far as the
future refi on the non owner occ. house-- do not lie about the
occupancy,shop for the best deal possible, if you can't justify the
deal, don't do it.The powers that be are cracking down on fraudulent
activities in the mortgage business more than ever now, it's not worth
it. Is there a reason why you are not pursuing cash out on your current
refi and just skipping the heloc idea? Remember helocs are based on
prime indexes(that are going up)and 1st trusts are based on mortgage
securities or libor, treaury and other indexes that are more stable in
comparison.
paranoid wrote:
> This message mat be crossposted in other groups, if so, sorry, I'm just
> trying to get a quick response....Thanks in advance
>
> So here is the deal. We own a house with about 40k to 80k in equity
> (waiting on appraisal now, should be done tomorrow)....We are in the middle
> of refinancing that house, to get a rate of about 1.75 percent lower.
>
> We have decided that we need to move to the other side of town quick
> (family obligations have us driving approximately 100-200 miles a day)....so
> here is our plan.
>
> Get a HELOC on the house, after the refinance, use that for down payment
> on a new house, obtain another loan...
>
> So in short...refinance current house, get a heloc, find property,
> obtain financing, move, rent out original house....
>
> Problem:
>
> We have found a property we like, but we cannot obtain a pre approval
> letter from the loan officer. He says he doesn't want to sign his name on
> anything that he cant guarantee. My real estate agent says without this
> letter, our offer wont be accepted....
>
> My middle score is 704, and we are doing a stated income loan (I am
> self-employed), and will be doing another stated income on the second
> house....
>
> What do we do? We thought about backing out of the current refinance,
> and then just getting a Heloc, and obtaining the second loan. Problem,. is
> we don't reduce our interest rate on said property, and it will cost us
> about $100 a month more, and we are very limited on our budget....Also,
> since we will be moving, refinancing the original house again at a later
> date will mean, either we lie about it being a primary residence, or its not
> worth doing, since it will be considered investment property..
>
> What would you do? We really need to move, Ive considered renting also.
> Main goal, is we have to move, before we drive ourselves crazy with all this
> driving.
>
>
> Again, Thanks again....

Re: preapproval problem...

In article <M6OXe.7119$>
wrote:

> We have found a property we like, but we cannot obtain a pre approval
> letter from the loan officer. He says he doesn't want to sign his name on
> anything that he cant guarantee. My real estate agent says without this
> letter, our offer wont be accepted....

That is the same thing as being rejected for the loan on the 2nd
house. They are telling you that they don't think you can pay
2 mortgages.

> My middle score is 704, and we are doing a stated income loan (I am
> self-employed), and will be doing another stated income on the second
> house....

Credit score means little when it comes to ability to pay. Stated
income means that you don't qualify for a normal mortgage, and these
kinds or programs are always red flags to smart sellers. Your seller
doesn't want to take their home off the market unless they are sure
you can get a mortgage.

> What do we do? We thought about backing out of the current refinance,
> and then just getting a Heloc, and obtaining the second loan. Problem,. is
> we don't reduce our interest rate on said property, and it will cost us
> about $100 a month more, and we are very limited on our budget....Also,
> since we will be moving, refinancing the original house again at a later
> date will mean, either we lie about it being a primary residence, or its not
> worth doing, since it will be considered investment property..

You just identified one of the key downsides of home ownership.
They are not easy or quick to sell. I think you are going to have
to slow down, put the horses back in the barn, and think this
through like a rational person. The right sequence is to list
your current home for sale, then sell it. Once you close, you
then get pre-qualified on your new loan, then find a new house.
Yes, that seems like a lot of work, but that it ensure that
you are not left holding the bag, and it makes you a much more
attractive buyer.

-john-

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John A. Weeks III 952-432-2708
Newave Communications
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