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Appraised Value
Current mortgage balance (is there a prepay?)
Did you provide the last company with W2's or Tax returns to "prove" your income, or did you go stated?
Did you provide the last company with any sort of retirement documents to prove assets in reserve?
Were they doing this loan as an owner occupied loan? Essentially saying you planned to live in the house you were refinancing? (I realize you're building a house, but this is something some people will fudge.)
I can answer a couple of these questions. This is not a stated loan...they have our income tax statements. Part of the problem is we have a rental property in NY and they wont take that rental into account because my husband didnt put it on the taxes...so thats like 800.00 a month they are not taking into account we are getting.
We put almost 9 grand of hand money into this house and we were told this was going to go towards the closing costs. We called about a HELOC but I guess we need to refi first before we get the HELOC? ( my husband said something about it needing to be all on one whatever that means?) I think they did this as an owner occupied refi also. We are very hesitant about telling the builder/mortgage company. I guess we are afraid of what may or may not happen. They sent us a letter wanting to make a date for the closing the walkthrough..and they are sending us another letter soon to tell us what we need the day we close on the loan. I guess we are hoping that they wont ask for proof we paid off any of the cards? We sent him the HUD for the refi we signed papers for (one of the 4 that fell through). I guess the loan officer (according to his last email yesterday morning) that he was working hard on getting us some kind of refi that pays off some of the credit cards instead of cash out. That would be great...but the problem is he said he would send some docs over we needed to sign "shortly" ..but that was over 24 hours ago. We are desperate for answers and we just dont know what to do next....
First, you having a final HUD for the refi could be huge. If I got that, I'd assume you got your refi, and paid off your cards. Let's hope that works out for you.
Regarding the refinancing the main property and not getting a HELOC, the guy told you that for one of two reasons. First, you could have very little equity available, in that you can't qualify for a HELOC. I think this is highly unlikely, because it would be just as unlikely that someone would do one loan "cash out" if you have that little of equity left. Personally I think it's probably the 2nd reason... we don't make any money on HELOCs, especially if they are <$30K. I personally use those as a tool to build a relationship with bankers. I refer them to local bankers (US Bank and Bank of America). This makes them much more likely to send me the deals they can't do.
So, my advice is this... see what happens with the deal since you sent them your HUD. In addition, you should be doing this at the same time... call local banks. Start with the bank where you have your money, as you're a known customer to them. Tell them about the Home Equity line you want, and give them as much information as you have. Tell them you want at least a "maybe" before you let them run your credit and do a full app. They have like 2-4 products for 2nd mortgages, so memorizing the guidelines is a no brainer to them. They should be able to give you a definite no, or a maybe with a 10 minute conversation. Keep US Bank, and Bank of America in mind also for possible HELOCs...
So if you can get approved for the loan, and there is no forced initial draw, then just move forward with it. A forced initial draw is where they make you take a certain amount out to start. You only pay for money you borrow, regardless of how big the credit line is. It's basically a secured credit card. If you take the line, and don't end up drawing a penny from it... be aware that there could be an annual fee. Ask about this if you don't draw money, because the last thing you want is a 30 day mortgage late over a $75 annual fee.
[quote=UseJeff;1297789]First, you having a final HUD for the refi could be huge. If I got that, I'd assume you got your refi, and paid off your cards. Let's hope that works out for you.
Regarding the refinancing the main property and not getting a HELOC, the guy told you that for one of two reasons. First, you could have very little equity available, in that you can't qualify for a HELOC. I think this is highly unlikely, because it would be just as unlikely that someone would do one loan "cash out" if you have that little of equity left. Personally I think it's probably the 2nd reason... we don't make any money on HELOCs, especially if they are <$30K. I personally use those as a tool to build a relationship with bankers. I refer them to local bankers (US Bank and Bank of America). This makes them much more likely to send me the deals they can't do.
So, my advice is this... see what happens with the deal since you sent them your HUD. In addition, you should be doing this at the same time... call local banks. Start with the bank where you have your money, as you're a known customer to them. Tell them about the Home Equity line you want, and give them as much information as you have. Tell them you want at least a "maybe" before you let them run your credit and do a full app. They have like 2-4 products for 2nd mortgages, so memorizing the guidelines is a no brainer to them. They should be able to give you a definite no, or a maybe with a 10 minute conversation. Keep US Bank, and Bank of America in mind also for possible HELOCs...
So if you can get approved for the loan, and there is no forced initial draw, then just move forward with it. A forced initial draw is where they make you take a certain amount out to start. You only pay for money you borrow, regardless of how big the credit line is. It's basically a secured credit card. If you take the line, and don't end up drawing a penny from it... be aware that there could be an annual fee. Ask about this if you don't draw money, because the last thing you want is a 30 day mortgage late over a $75 annual fee.
Hope this helps, and good luck[
But isnt the mortgage company going to run the numbers again before closing? Then they will find out we didint refi and pay off the cards like we were supposed to? Whats going to happen?
Well regarding running the numbers at closing... the numbers have generally been "ran" before closing. Typically they just do verbal verifications of employment at the last minute before closing. They rarely rerun credit, so there's really no way of them knowing anything you have not already disclosed. Even if they did screw up something and had to rerun credit, it takes a minimum of 30 days after the 1st of the following month things have been paid off to report on credit... so they wouldn't expect to see zero balances on any credit cards.
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