I've been good . . . - Posted by Lette

Posted by Lette on October 12, 1998 at 21:39:45:

This helps me more than you’ll ever know.

I’ve been good . . . - Posted by Lette

Posted by Lette on October 12, 1998 at 10:20:35:

. . . I haven’t asked a question in like 3 days. But I couldn’t hold out any longer. Investors are starting to call me up (money investors). I want to make sure I ask all the right questions. Is asking their percentage rate the same as asking how many points they charge? If not, please tell me the difference.

Before a lender - even a private lender - will lend any money, I’m assuming they must see an appraisal. Am I supposed to ask the seller to pay to get an appraisal done? Or am I supposed to pay for one? I’m trying to use as little out-of-pocket money as possible.


Re: I’ve been good . . . - Posted by Greg

Posted by Greg on October 14, 1998 at 24:09:12:

E.L. is right on. You must review all the basics. There are probably hundreds of inexpensive books you could buy (something like Real Estate Made Easy) that review things like loans, mortgages, trust deeds, escrow, etc. These aren’t the investor books. Investor books tend to only outline the deals. NOT teach you fundamentals. You need some good DRY material for a change.
Good Luck,

Re: I’ve been good . . . - Posted by Rob FL

Posted by Rob FL on October 12, 1998 at 17:52:53:

A point is 1% of the amount of the loan. If the loan is for $100,000, 3 points is $3,000. This is not the same as the interest rate on the loan, which is simply part of the monthly payment. Points are usually paid up front in cash before the loan closes. Points are simply a way for the lender to make more money on the deal.

Not all lenders need appraisals. If the loan is to a Federally insured lender, ie FHA, VA, FNMA, FHLMC, etc. then an appraisal is a must. As for loan to private lenders, sometimes they want an appraisal sometimes they don’t. If possible, try to show them a CMA (Comparable Market Analysis) instead. This is simply a report showing what comparable properties in the area sold for. If you pull 4-8 comps that will probably do. You need to do that anyway to find out what the retail value will be. I have a lender who requires a CMA and a personal inspection of the property before he loan money on it.

Your putting the cart before the horse - Posted by Dan

Posted by Dan on October 12, 1998 at 11:36:22:

you need to learn these basic fundamentals that you
are asking about before you start doing these things,
or your going to end up in a heap of trouble.
This post and the one above are proof of that.

Re: I’ve been good . . . - Posted by E.L.

Posted by E.L. on October 12, 1998 at 11:05:40:

As far as your appraisal goes, I’ve needed one
for a condo. I didn’t want to spend any money
I didn’t have to so I asked for the most recent
appraisal on the property, hoping to us it. It
was too old but the appraiser did upgrade it for
about 1/2 the price of a new one. I then asked
the seller to split that cost with me, they agreed.
That made the new appraisal cost me 1/4 of what
a new one would.

Good Luck,
E. L.