DagnyT
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Post by DagnyT on Aug 27, 2015 17:31:48 GMT -5
Did you apply online or in person? When we got ours several years ago, we applied in person and it was approved on the spot. However, last year when I applied online for a credit card with the same bank it took a week for them to get back to us. Hope you get an answer soon.
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Deleted
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Post by Deleted on Aug 27, 2015 17:32:14 GMT -5
It took us 6 weeks and a boatload of paperwork, emails, and phone cons to get our HELOC. And we were considered "fast-tracked" I wish you the best but this seems like an exceptionally tight timeline. I am a little confused-are you trying for a HELOC on the house you want to list for sale in October? Will you pay it off prior to the sale closing b/c the HELOC is a lien on the property that would impede closing.
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midjd
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Post by midjd on Aug 27, 2015 17:42:26 GMT -5
Ours was faster than that... maybe 2 weeks? I remember it was kind of a PITA to schedule the signing at a time we both could be there, so that probably added a week or so. This was a year ago.
ETA - to actually answer the question, it couldn't hurt to call the bank and get an estimated timeline, but you could be looking at another week or 2 regardless.
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CCL
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Post by CCL on Aug 27, 2015 18:16:05 GMT -5
It shouldn't be a problem to call your loan officer and ask. I'm surprised they didn't give you a tentative timeline when you applied.
Last time I got one on a house I already owned it only took a week. We applied in person. It may have changed by now, but at that time, if you closed the credit line/sold the place within 3 years, you had to pay the $350 appraisal fee back. Just be aware sometimes they have fees for short-term loans. Personally, I saved a ton of money with this one. I rolled the mortgage into the HELOC so dropped the rate from 8% to 5% then watched it drop all the way to about 2% where it stayed till I sold the place.
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CCL
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Post by CCL on Aug 27, 2015 18:24:59 GMT -5
Applied online, and yes it's on the house we hope to sell. We owe $262, and it should sell in the $450-500 range. We're only asking for 25k. Sale proceeds will more than cover the mortgage and HELOC. I figured it would be a quicker process given our equity. 6 weeks ain't gonna work, for sure. Oh, and we applied with the same bank that's holding our mortgage. I thought that might speed up the process since they wouldn't be in second position behind another bank if we defaulted or whatever. Don't know if that really matters though. Don't know if that matters much. On the house last house we sold we had our mortgage and home equity line with the same bank from the start and they treated everything separately. The HELOC was more restrictive/demanding than the 1st mortgage was. For example, 1st required no more than $1000 deductible for the insurance, HELOC made us lower it to $500. Every single year we had to provide proof of insurance to the HELOC. The 1st mortgage didn't seem to care. Whenever I sent extra toward principle, 1st mortgage was credited without issue. HELOC screwed it up repeatedly. It was as though they were 2 different banks from 2 different planets. It was stupid. The 1st was for 90% of purchase price and the HELOC was for 10% so the 1st was for 9 times the $$, but the HELOC was the one that always had issues.
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tractor
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Post by tractor on Aug 27, 2015 18:33:22 GMT -5
Just finished mine, took just over three weeks. Have over 150,000 equity in house, took out a $20,000 line. Was pretty easy, but still took time for the bank to process everything.
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Plain Old Petunia
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Post by Plain Old Petunia on Aug 27, 2015 18:37:30 GMT -5
Applied online, and yes it's on the house we hope to sell. We owe $262, and it should sell in the $450-500 range. We're only asking for 25k. Sale proceeds will more than cover the mortgage and HELOC. I figured it would be a quicker process given our equity. 6 weeks ain't gonna work, for sure. Oh, and we applied with the same bank that's holding our mortgage. I thought that might speed up the process since they wouldn't be in second position behind another bank if we defaulted or whatever. Don't know if that really matters though. Why not just get a 0% credit card?
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phil5185
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Post by phil5185 on Aug 27, 2015 19:44:04 GMT -5
"they"?? Why not do an "as is" sale? In my experience, anything other than painting is a loss - eg, spend $25,000 to make it pretty, and that will add $10K to the sales price 'if you're lucky' - ie, a $15,000 loss.
I sold a house 'as is' 2 weeks ago, didn't spent anything on it, didn't have time to. Listed it and got the offer on the same day, asked $175k, offer was $170k. (The PHX market is hot right now, probably won't happen elsewhere.)
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dondub
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Post by dondub on Aug 27, 2015 20:05:11 GMT -5
If you applied for an owner occupied HELOC with the intent to sell in the near term, you may be committing mortgage fraud.
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justme
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Post by justme on Aug 27, 2015 20:27:07 GMT -5
When I was looking there was one place that had been completely redone. It was way overpriced regardless of what he did, but he picked black granite and ugly tile for the floors and used the same tile for the showers. Blech. Definitely would not have paid more than other places that weren't quite as updated because I didn't like his changes.
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CCL
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Post by CCL on Aug 27, 2015 21:30:11 GMT -5
Well, you ought to be able to get new floors and granite counters for less than $50,000. I paid $3,000 for granite counter tops and sold the place for $15,000 more.
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emma1420
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Post by emma1420 on Aug 27, 2015 21:43:11 GMT -5
When I was looking there was one place that had been completely redone. It was way overpriced regardless of what he did, but he picked black granite and ugly tile for the floors and used the same tile for the showers. Blech. Definitely would not have paid more than other places that weren't quite as updated because I didn't like his changes. I wouldn't pay for those things either, but almost every SFH in a halfway decent area in my area now has granite. I think it's one of those things that is expected at certain price points now.
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CCL
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Post by CCL on Aug 27, 2015 21:57:20 GMT -5
When I was looking there was one place that had been completely redone. It was way overpriced regardless of what he did, but he picked black granite and ugly tile for the floors and used the same tile for the showers. Blech. Definitely would not have paid more than other places that weren't quite as updated because I didn't like his changes. I wouldn't pay for those things either, but almost every SFH in a halfway decent area in my area now has granite. I think it's one of those things that is expected at certain price points now. Yes, in some neighborhoods it is expected. We had numerous new homes being built in the surrounding neighborhoods and that's what the new houses had, so buyers expected to find it in competing houses.
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alabamagal
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Post by alabamagal on Aug 27, 2015 22:01:41 GMT -5
If you applied for an owner occupied HELOC with the intent to sell in the near term, you may be committing mortgage fraud. Shit. Seriously? Why? There's nothing wrong with selling house when you have HELOC. I just did. It is paid off at settlement.
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CCL
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Post by CCL on Aug 27, 2015 22:02:29 GMT -5
Well, you ought to be able to get new floors and granite counters for less than $50,000. I paid $3,000 for granite counter tops and sold the place for $15,000 more. That's what we need to determine. If selling as is leaves $50k on the table and we can upgrade for $10k it would be dumb not to do it. Just an FYI - it took about 5 weeks from the time we shopped for the granite till the day it was installed. We had to schedule someone to come out and measure, took about 3 weeks to fabricate, then after it came in, another week or so to schedule installation. Your area may be different, but keep that in mind since you want to sell quickly.
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CCL
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Post by CCL on Aug 27, 2015 22:04:04 GMT -5
What's wrong with your floors? Maybe they could be freshened-up for less money rather than replaced?
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phil5185
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Post by phil5185 on Aug 28, 2015 8:35:32 GMT -5
if the realtor think it's worth doing. It's always in the realtors' best interest to add value to a house, the commission is based on sales price, not the net.
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The Captain
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Post by The Captain on Aug 28, 2015 8:58:37 GMT -5
FWIW I recently looked into a HELOC for the kitchen project. Was told in my part of the country it's a 6-8 week process because the appraisers and processors are so backed up.
There is speculation the Fed will raise rates in the fall and people are scrambling to lock in while they can.
Any chance Loops' folks can help out with a short term loan?
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Deleted
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Post by Deleted on Aug 28, 2015 9:39:44 GMT -5
Hmm......I didn't see that the Fed has announced that they're raising rates this Fall...seen a lot of speculation (as usual) but can't find an announcement....?
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souldoubt
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Post by souldoubt on Aug 28, 2015 9:41:12 GMT -5
Agreed with Phil.
Also I bought in 2012 when the market was ridiculous and places were only on the market for a few days while sellers reviewed offers. I got my place only because I was the first to see it and put an offer down while getting outbid on multiple other places. If places in your neighborhood are getting multiple offers and bidding wars I don't see the point in making life harder on yourself trying to fix up some stuff a buyer may end up changing. To each his own.
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emma1420
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Post by emma1420 on Aug 28, 2015 10:08:02 GMT -5
Agreed with Phil. Also I bought in 2012 when the market was ridiculous and places were only on the market for a few days while sellers reviewed offers. I got my place only because I was the first to see it and put an offer down while getting outbid on multiple other places. If places in your neighborhood are getting multiple offers and bidding wars I don't see the point in making life harder on yourself trying to fix up some stuff a buyer may end up changing. To each his own. I think this is entirely dependent on your local market. And if Dark and Loop can get an extra 50K out of their house by only spending 15-20K, and it sells much faster, then to me that is a good investment of money. Where I live, almost every SFH now has granite and new or refinished floors (for all except the bottom 10% price-wise), and at particular price points if you haven't done those things the home typically takes longer to sell. However, we also don't have situations were there are multiple bids regularly. In terms of a HELOC, when I got mine almost 10 years ago, I think it took about 5 weeks from application to getting the funds. Most good contractors don't require anything more than a deposit, so assuming your application is approved, could you start getting measurements and placing your order, so that installation could occur as soon as you receive the funds?
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ArchietheDragon
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Post by ArchietheDragon on Aug 28, 2015 10:09:11 GMT -5
Agreed with Phil. Also I bought in 2012 when the market was ridiculous and places were only on the market for a few days while sellers reviewed offers. I got my place only because I was the first to see it and put an offer down while getting outbid on multiple other places. If places in your neighborhood are getting multiple offers and bidding wars I don't see the point in making life harder on yourself trying to fix up some stuff a buyer may end up changing. To each his own. I think this is entirely dependent on your local market. And if Dark and Loop can get an extra 50K out of their house by only spending 15-20K, and it sells much faster, then to me that is a good investment of money. If they could do that, it would be a friggen home run. I think what Phil is asserting is that this rarely happens. What usually happens is that you get an extra $15-20k by only spending $50k.
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Aug 28, 2015 10:11:39 GMT -5
Agreed with Phil. Also I bought in 2012 when the market was ridiculous and places were only on the market for a few days while sellers reviewed offers. I got my place only because I was the first to see it and put an offer down while getting outbid on multiple other places. If places in your neighborhood are getting multiple offers and bidding wars I don't see the point in making life harder on yourself trying to fix up some stuff a buyer may end up changing. To each his own. You should capitalize on the fact that there are empty-handed bidders who already know your neighborhood and wanted in!!!
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souldoubt
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Post by souldoubt on Aug 28, 2015 10:23:26 GMT -5
Agreed with Phil. Also I bought in 2012 when the market was ridiculous and places were only on the market for a few days while sellers reviewed offers. I got my place only because I was the first to see it and put an offer down while getting outbid on multiple other places. If places in your neighborhood are getting multiple offers and bidding wars I don't see the point in making life harder on yourself trying to fix up some stuff a buyer may end up changing. To each his own. I think this is entirely dependent on your local market. And if Dark and Loop can get an extra 50K out of their house by only spending 15-20K, and it sells much faster, then to me that is a good investment of money. Where I live, almost every SFH now has granite and new or refinished floors (for all except the bottom 10% price-wise), and at particular price points if you haven't done those things the home typically takes longer to sell. However, we also don't have situations were there are multiple bids regularly. Agreed it's dependent on your local market. I can't speak for DH's market but I live in the same state south of him and in both of our areas prices have seen quite an increase since I bought in 2012. The point as Phil and Archie pointed out is that you don't always get your money back on upgrades. Also unless I'm mistaken I thought DH said they were moving in the next few months so they're talking about needing a HELOC then getting all that work done in the next month or so hoping they make their money back or more on the HELOC. To me that upside may not be worth the stress and trouble of trying to upgrade a house to sell in the next few months while preparing to move a family of 4 to another state. Edit - as GRG mentioned there are apparently already buyers who want in. Where I'm at (town house) there's 2 places that have been sold in the last 6 months that were on the market for a few days and based on those sales I could make at least 40% over what I paid. I've thought about selling to take the gain, sit on the cash and wait for the market to come down and buy a house. That's more talk than anything but point is if I were to do that knowing there's buyers who want in I'm just selling as is. I'm not going to throw any money, time or effort into the place in hope of making that or a bit more back when the would be buyers are going to do all that work for me because they want in that bad.
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phil5185
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Post by phil5185 on Aug 28, 2015 10:33:05 GMT -5
Our society gets shallower and shallower. I blame the schools! lol
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The Captain
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Post by The Captain on Aug 28, 2015 11:55:29 GMT -5
Hmm......I didn't see that the Fed has announced that they're raising rates this Fall...seen a lot of speculation (as usual) but can't find an announcement....? You are absolutely correct! I saw this right before I called my mortgage guy and it didn't click when he said they were raising rates! I'll go back and edit my other post. www.reuters.com/article/2015/08/13/us-economy-poll-usa-idUSKCN0QI1K020150813
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Deleted
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Post by Deleted on Aug 28, 2015 12:01:07 GMT -5
I think it was pretty certain it was going to happen in the September meeting, but the latest stock market craziness may have changed that.
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Post by The Walk of the Penguin Mich on Aug 28, 2015 12:14:31 GMT -5
Dark....would it be possible to get a loan from a home improvement store for what you want done? The interest rate won't be great (however, sometimes they have a 0% for XX months) to get someone in and do the counters and floor?
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ArchietheDragon
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Post by ArchietheDragon on Aug 28, 2015 12:14:44 GMT -5
True, but Phil doesn't live in a place where homes sell for this much either. At certain price points buyers expect more updated finishes, even if the underlying reason for the high prices is the land value not the house. It's not rational, but when have people ever been rational about large spending decisions? If you can get an additional $50k in selling price by spending $20k in updates it is a no brainer.
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Deleted
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Post by Deleted on Aug 28, 2015 12:15:01 GMT -5
I think if offers come in like you say, (do bidding wars send houses above asking?) then you might be in the market above the one you describing...
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