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Final loan outcome and interview news-good news

November 14th, 2014 at 01:26 am

HI all

Final main home refinance outcome.

Conventional was denied for now. Everything approved (income, credit, extenuating circumstances) but the fact that I converted by chapter 13 bankruptcy to a chapter 7 counts as 2 bankruptcies and (even w extenuating circumstances) I need to wait 3 years from the BK discharge so August next year. Broker will keep all info on file and has a diary note to contact me 8/15 to just resubmit income and assets to get the final approval. 3.6 or less rate if rates do not change too much

Meanwhile.. 5/1 arm APPROVED and they are trying to close next week. rate 5.375%, amortization 30 years, 2 points

MY PLAN.. do the 5/1 arm then switch to conventional in August, 2015. Why not stay w the hard money loan until August next year? (1) even w the points/and cost rolled in the loan (balance increase) .. it is $6600 less to do the 5/1 arm for 9 months then keep my current loan (2) my current loan is being called 11/15 no extension. I do not want to get up to September and find out I can not go conventional. This loan gives me some breathing room.

All costs rolled in loan. Payment $368 LESS than what I pay now AND includes taxes and insurance. I will auto save the $368.

That last roof on that house (of the 6) is being done this weekend
Looking to sell the Tahoe next week.. pay off the Genesis and save the rest
Looking to wrap things up for year end and end strong..trying to pull as much savings out of the hat as I can
Finally calling seller to get that first deed. Asked realtor what he would estimate the SELLING price of that house would be so I have a value. he is researching

Goal w rental emergency fund is to finish this last roof and then build fund back up to $15k and leave it there..

Interview went well. I should have news tomorrow or early next week on the new job.Same rate I am at now.. Oakbrook (much closer), can wear JEANS!!, flex time and they are open to some work at home.. and contract to HIRE if I want to be hired... SOLID household name (on every corner company)

Fingers crossed.

Relieved loan decision is DONE for now


5 Responses to “Final loan outcome and interview news-good news”

  1. Kiki Says:

    Why not put that $368 back to loan to pay off faster? You are used to not having it and in a year that is 4400 toward houses without trying.

  2. Rachael777 Says:

    I am not 100% sure I am keeping the house long term and right now . building and having cash is King for me. Things are extremely fragile and tight w the 6 homes/3 units and I expect them to be that way for a while. I have no leeway on the homesat all.. whatever happens I must make the payments or they are gone.. Payoff 4/2018. When I switch to conventional I will be expediting things anyway likely w a 15 year loan. thanks for the thoughts though.

  3. creditcardfree Says:

    I'm happy you have clarity on the conventional loan. I think you will finish the year strong, as you said. Fingers crossed on the job offer!

  4. Another Reader Says:

    I didn't see how anyone was going to get that conventional loan done under the current rules. Is the 5/1 ARM a portfolio loan? If it's also Fannie/Freddie, you may be back to square one.

    While it would be nice to throw extra cash at the rentals, I agree you need to hold more cash. Too many problems can come up with the rentals. Get the Tahoe sold, bank the cash, and keep working on refinancing your house. Who knows. maybe you can bank the $119k needed to pay off the rental houses at the end of next year. However, getting out from under the hard money deadline is now top priority.

    Call that seller and get that deed!

  5. Rachael777 Says:

    5/1 ARM s NOT Fannie Mae/Freddie Mac and I expect to get a closing date Monday.. loan buys me 5 years but hoping to get out of it in 9 months for just normal loan closing costs which will pay for itself in less than 2 months w the cost savings on the conventional loan and then the loan will rapidly pay down the balance. Will call seller at lunch and get rolling on that deed. Another benefit of taking the 5/1 arm.. the hard money loan is listed similarly as a charge card account on my credit report so I am getting dinged several points by having it 'maxed out' and a high utilization of credit.... this other ARM should show as a true mortgage and not have that same effect. Score right now per the conventional guy is 690. A higher score, more assets will likely reduce the rate further from 3.6 (if rates do not go up in the meantime). Need to build up cash in the real estate fund.

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