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REFINANCE TO ADD FAMILY MEMBER TO LOAN

MY HOUSE IS CURRENTLY IN MY FATHERS NAME ONLY, OWE 89,000. HOUSE IN VALUED AT APPROX 174,000 NOW. WHAT I WANT TO DO IS FINANCE THE HOUSE IN MY NAME, WITH MY FATHER AS THE CO-SIGNER, WANT TO GET LOAN FOR 100,000. IS IT POSSIBLE TO GET THIS DONE AS A RE-FINANCE (ME AS MAIN BORROWER, FATHER AS CO-SIGNER) WITH NO DOWN PAYMENT AS WE HAVE SO MUCH EQUITY IN THE HOME? by traci._689_870 from Pasco, Washington. Jun 5th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

The short answer is yes, but the question is why.. if you need $11K, then it kind of makes sense... but if your attempt is solely to add yourself to the property, you can do that without having to refinance. So long as you're not removing your dad, you can do this without the expense of having to refinance (approximately $3000). But if you're curious, you should contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 5th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,849 contributions

You need to meet with a local mortgage professional before you just do a refinance. Knowing exactly what you are trying to accomplish will help determine the course of action you should take. For example, if your goal is to get you onto the property/loan for estate planning reasons, you don't need to do the refinance. There are many reasons professionals like William and myself encourage consumers to work with a local Mortgage Banker/Broker rather than with the big banks or National mortgage factories. As an employee of a bank, a loan officer is a representative of that lending institution and works to sell mortgages and other loans by and for their employer. They may have a wide variety of loan types to draw from, but all products originate from that one specific lender. When you deal with a bank, you are STUCK with ONLY their products even if there is something better for you out there. A Mortgage Banker/Broker is required to take at least 20 hours of classroom training and pass not one, but two comprehensive tests to ensure that they know and understand the mortgage loan products and programs, State and Federal Disclosure laws and most importantly how to ethically counsel Mortgage Borrowers BEFORE they are issued a license allowing them to work with you. Did you know that a bank loan officer is only required to be "Registered" . Not Licensed, just registered! Sad, but true...NO training, NO testing, NO licensing requirements, just registered. So before you walk into one of the big banks, you need to think about who is looking out for your best interest in what is probably the largest financial decision of your life.You can check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jun 5th 2012
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Paul McFadden (paul.mcfaddenmortgages@gmail.com)
#42 ranked lender in Washington - 45 contributions

Yes. Choose someone reasonably local when doing this. The allure of doing a big deal like this online isn't worth the time it will take to get it done. You would need to have good credit, etc. in order to make this work. Call or email me if you have any further questions. I'm happy to help!Paul

Jun 5th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Just to be clear.. by dealing with a broker, every penny he / she makes as a fee for doing your loan is disclosed. By dealing with the Big Bank (Wells Fargo, BofA.. etc), they do not disclose their compensation. Current legislation has changed the rules for mortgage brokers, and everything is disclosed, but for the Big Bank.. NOTHING has changed.. it's business as usual, and their compensation is, and will never be disclosed. Also by Dealing with the local broker, you are dealing with an educated, licensed, trained professional. Brokers are required to continue their education by taking a mandatory number of education hours keeping him / her on top of the ever changing lending environment. By dealing with the big bank, in most cases, you're dealing with primarily an order taker, application assistant. They do not have the Federal required / mandatory education, the Federal / mandatory background check conducted through the FBI, or the finger print registration. There are no laws that mandate they be educated, or be on top of changing laws and regulations... They are not experienced in dealing with irregularities in loans, and they are untrained in working around loan issues, which, in this day and age, is paramount. They have a very limited number of loan products, and if your particular loan scenario does not fit within their small confined box, then your denied.. The broker on the other hand deals with hundreds of lenders and has thousands of loan options. He is experienced in seeking out the right loan product for your particular scenario. As far as who services your loan, it's true that most loans are sold on the open market. My BofA loan was just sold to NationsStar, so to be clear, all loans are subject to being sold.. Your Big Bank loan officer / application assistant will have you sign a disclosure telling you so... In our industry, there have been many changes.. The biggest is the licensing and education, and disclosure requirements.. But these laws have been directed at the mortgage broker, and not the Big Banks.. (Deep pockets and lobbyists are great!!) And because of these laws.. Those loan officers who couldn't pass the required background checks and education requirements flocked to the Big Banks, where there are no requirements.. When I say stay away from the Big Banks.. It's not an agenda.. It's a warning... you loan will be troublesome.. it will take a long time to close, it will be frustrating, and you will feel that your Big Bank application assistant doesn't know what he / she is doing... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 5th 2012
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Curt Tiedeman (curttiedeman)
#46 ranked lender in Washington - 28 contributions

Hi Traci,You should be able to do what you stated above. I am cautious to give you a full "yes" because I don't know all of the facts on credit, income, whether or not you will be living in the home, etc. There are some mortgage loan underwriting rules that need to be taken into consideration:1. Continuity of Obligation - vesting of the property, who has been making the payments on the existing lien 2. Taking cash-out, whether or not you are being added to make the loan qualify.Call me so I can get a few more details and I can answer all of your questions.Thanks, Curt TiedemanFirst Rate MortgageRenton, WA425.988.2501c.tiedeman@1ratemtg.comWA License: MLO-35554

Jun 5th 2012
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