Help!!!!!!! - Posted by sherry

Posted by Tom-Pa on February 02, 2001 at 19:55:00:

sherry, Most lenders will want to see at least 12 months seasoning on your mortgage before refinancing. During this time your credit score will go up(if your payments are made on time). The other thing they are going to look at, is want did do do to the property to increase the value in the 6 months that you’ve owned the property. Another thing is that lenders will not lend 100% LTV(loan to value). So depending on the value of the property you may be maxed out now. You may want to check to see if there are any investment groups in your area. If you e-mail me I could find out if there is a group in your area and who to contact. Good Luck Tom

Help!!! - Posted by sherry

Posted by sherry on February 02, 2001 at 09:04:26:

Hello Ed,

I posted a message yesterday, and noone has responded. I see that other people posting messages did get a response. I know that my question may not be as good as some, but I really need some help here. Please respond. My message was as follows:

Hello Ed,

I purchased the Carleton Sheets course, and I feel that it is loaded with great information. I have so many questions though. First of all I purchased a home about 6 mos ago, and I rent that house out. This is what has made me so interested in REI, however my credit is okay, but I have about 10,000 equity in the house. Do I need to improve my credit before I can pull the equity out of the home? I am looking to purchase a duplex so that I can live in one of the units, but I do not know where to start. I also need someone to please tell me what is meant by the term,"seller takes back a % of the mortgage. I do notg understand that. I hope that I do not sound as dumb as I feel, but I really want to get started.

Please someone, anyone respond

Re: Help!!! - Posted by Ed Garcia

Posted by Ed Garcia on February 02, 2001 at 10:55:32:

Hey Sherry,

I guess you’re not going to go away? (Smile) I can tell that you’re a women, who wants her post answered and won’t be denied. So here we go.

Your post states,

First of all I purchased a home about 6 mos ago, and I rent that house out. This is what has made me so interested in REI, however my credit is okay, but I have about 10,000 equity in the house. Do I need to improve my credit before I can pull the equity out of the home?

Answer:

Sherry, how would I know, I don’t know what your credit status is because you haven’t
really shared that with us. It must have been decent, or you wouldn’t have been able to purchase the house. But then again, you don’t tell us how you purchased the house and if you’ve put new financing on the subject property when you did your deal. Sherry, jus for the record, there are other ways to utilize your equity in your property with out borrowing against it directly. You can use it as additional collateral and cross collateralize when purchasing another property. Again in order to do this, you would have to select a portfolio lender in you local community.

You, next question,

I am looking to purchase a duplex so that I can live in one of the units, but I do not know where to start.

Answer:

The first thing you need to do is get yourself pre-qualified by either a mortgage broker, or a portfolio lender in you community. By the way, a portfolio lender is a lender that makes a loan and keeps it. Because they keep their loans, they are usually more flexible and can work with you beyond a mortgage broker who sells the loans off.

Sherry you tell us that you want to purchase a duplex, but don’t tell us the motivation of the seller, or give us any information in regards to the specifics of the deal. Another words, WILL THE SELLER TAKE BACK A SECOND? A seller carry back, is when the seller carries back some of their equity in lieu of down payment, allowing the lender to have a better loan to value on the property.

Sherry, in reply to the rest of your post, NO, you don’t sound dumb, just inexperienced.
Everybody has to start somewhere. I hope I’ve shined a little light on your questions and want to thank you for coming to this site. I would like to suggest for you to read the How-To Articles on this site. Also spend a little time on the Main News Group. Nothing against Mr. Sheets, but you’ll learn more there in 3 months, then you will out of a book.

Ed Garcia

Re: Help!!! - Posted by sherry

Posted by sherry on February 02, 2001 at 12:17:38:

Dear Ed,

First of all thank you so much for answering my post. I have a dear friend who is a mortgage broker, but knows nothing about creative financing. I purchased the house with her help, she got me qualified with a company. My credit is not really good, it is not breaking 600, but I still qualified for a mortgage with a high interest none the less(13%) So I want to refinance, and pull the equity out. So knowing this, can you tell me whether or not I have to have really good credit to refinance,and pull out the equity.