Re: Help!!! - Posted by Ed Garcia
Posted by Ed Garcia on February 02, 2001 at 10:55:32:
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?
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.
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.