I first contacted CFB Mortgage by phone and a lady took down all my information. She was the one that reassured me that the referral guy from Patrick Boston was completely wrong about how difficult it will be to get this loan. So we made an appointment for yesterday at 3:00 and I went inside. The woman took my information and was going back and forth making copies and getting my questions answered by her superiors. She didn’t seem to know as much as I would like, but she’s definitely smarter than Cammy. Once she had all my information I started asking questions. The first question was about what would happen if I can’t get the leases from the owner verifying their rents. When she came back from her supervisor (10 minutes later), she said that it won’t matter because the appraiser can calculate what the rents would be based on the area. WHEW! Then I asked her what kind of mortgage would I qualify for, estimated interest rate, and closing costs. So she printed out a piece of paper and went through each cost with me:
So my mortgage with CFB would be for 30-years, with a 5.00% interest rate, a monthly mortgage payment of $601 and a total amount of $22,685 due to purchase everything. My plan is to rent all 4 apartments for $550, so a mortgage of $601 would leave me with a monthly profit of $1599, let’s just say $1600. And that’s before maintenance costs so let’s put my total profit at $1300. So that’s a yearly profit of $15,600 with CFB’s mortgage (1300x12), right? Okay.
During my Wednesday meeting with Marvin Wassle, I asked him if he knew of any mortgage companies that he can recommend. He told me that he’s never heard a bad thing about getting a mortgage from Empower FCU. Empower are the same people that gave me two secured credit cards and helped me build my credit to the point where I could buy this property in the first place. So I called the investment broker at Empower and he told me to go online and fill everything out. It was a comprehensive form that had all the questions a mortgage company would ask, but in terms that a moron like me could understand. Once the form was filled out, I sent it and I got my pre-approval letter. That was easy! Then I looked at the mortgages that I qualify for since I’m a member of Empower. For the same property, they will give me a 15 year mortgage, an interest rate of 3.75%, a monthly mortgage payment of $491 (thanks to the lower interest payment), and a total amount of $20,859. My monthly profit would be $1709, $1409 after maintenance costs. So that’s a yearly profit of $16,908 with Empower’s mortgage. Marvin also said that, because he does a lot of closings for Empower, I can get a small discount since he’s my lawyer.
An interest rate of 3.75% vs. 5.00%. A monthly mortgage payment of $491 vs. $601. A total cost of $20,859 vs. $22,685. A yearly profit of $16,908 vs. $15,600. Yeah, this is a tough choice! I’m going with Empower, and it makes sense. They were the only company willing to give me two secured credit cards, an issue I talked about in a 2011 post I did called Saying Goodbye to July. It only makes sense that I do business with the same people that helped get me to this point. So I’ll call CFB Mortgage on Monday to say thanks, but I can get a better deal with someone else. There were good, but Empower is much better. Marvin Wassle’s advice comes through yet again, and now I have everything set. My lawyer Marvin Wassle, my mortgage company Empower, and my worthless real estate agent Cammy. This was one hell of a week but the foundation is set. It’s now up to me to get the job done.
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