From: "fjacobs" 
Newsgroups: misc.invest.real-estate
Subject: Re: preapproval problem...
Date: 20 Sep 2005 07:37:46 -0700
   posting-account=YVWiKg0AAACigw8rvayuqZX9aHEBH3bs

Depending on your state,(make sure I am licensed there), I could get
you  approved, a letter, and probably a better rate. As far as the
future refi on the non owner occ. house-- do not lie about the
occupancy,shop for the best deal possible, if you can't justify the
deal, don't do it.The powers that be are cracking down on fraudulent
activities in the mortgage business more than ever now, it's not worth
it. Is there a reason why you are not pursuing cash out on your current
refi and just skipping the heloc idea? Remember helocs are based on
prime indexes(that are going up)and 1st trusts are based on mortgage
securities or libor, treaury and other indexes that are more stable in
comparison.
paranoid wrote:
> This message mat be crossposted in other groups, if so, sorry, I'm just
> trying to get a quick response....Thanks in advance
>
>     So here is the deal. We own a house with about 40k to 80k in equity
> (waiting on appraisal now, should be done tomorrow)....We are in the middle
> of refinancing that house, to get a rate of about 1.75 percent lower.
>
>     We have decided that we need to move to the other side of town quick
> (family obligations have us driving approximately 100-200 miles a day)....so
> here is our plan.
>
>     Get a HELOC on the house, after the refinance, use that for down payment
> on a new house, obtain another loan...
>
>     So in short...refinance current house, get a heloc, find property,
> obtain financing, move, rent out original house....
>
>     Problem:
>
>     We have found a property we like, but we cannot obtain a pre approval
> letter from the loan officer. He says he doesn't want to sign his name on
> anything that he cant guarantee. My real estate agent says without this
> letter, our offer wont be accepted....
>
>     My middle score is 704, and we are doing a stated income loan (I am
> self-employed), and will be doing another stated income on the second
> house....
>
>     What do we do? We thought about backing out of the current refinance,
> and then just getting a Heloc, and obtaining the second loan. Problem,. is
> we don't reduce our interest rate on said property, and it will cost us
> about $100 a month more, and we are very limited on our budget....Also,
> since we will be moving, refinancing the original house again at a later
> date will mean, either we lie about it being a primary residence, or its not
> worth doing, since it will be considered investment property..
>
>     What would you do? We really need to move, Ive considered renting also.
> Main goal, is we have to move, before we drive ourselves crazy with all this
> driving.
> 
> 
> Again, Thanks again....