Cash purchase & appraisal

[gorillakimchi]

A borrower paid cash to purchase a home back in Oct/2021 & public record indicates transaction was done Nov/2021 (owner of public record is the borrower's LLC)

However, AMC sent order (01/2022) as purchase appraisal and RPA shows date of contract Oct/2021, so I called the borrower & he said it's for "late purchase loan(?)".

Usually a borrower doesn't know much about real estate transaction or loan process, so I assume he might give me a wrong info.

Does anyone know what late purchase loan is? I googled it but couldn't find info.

He already paid in cash(no appraisal required) back in Oct/2021 & transaction was completed in Nov/2021. So isn't it supposed to be a Refi?

Please advise if there's something that I'm missing or misunderstanding.

Thank you

 

[J Grant]

A borrower paid cash to purchase a home back in Oct/2021 & public record indicates transaction was done Nov/2021 (owner of public record is the borrower's LLC)

However, AMC sent order (01/2022) as purchase appraisal and RPA shows date of contract Oct/2021, so I called the borrower & he said it's for "late purchase loan(?)".

Usually a borrower doesn't know much about real estate transaction or loan process, so I assume he might give me a wrong info.

Does anyone know what late purchase loan is? I googled it but couldn't find info.

He already paid in cash(no appraisal required) back in Oct/2021 & transaction was completed in Nov/2021. So isn't it supposed to be a Refi?

Please advise if there's something that I'm missing or misunderstanding.

Thank you

sounds like a refinance but stop askng the borrower, ask your AMC client - tell them if it is a purchase loan, then you need to get the sales contract. Who is the buyer and seller ? How can a buyer purchase a house from themselves ? ( unless they are buying from their own LLC - Which is hinky but I suppose possible )

 

[Bob Ipock]

If it was a cash sale then it was not financed it can't be a re-finance. Could be many things. Your client needs to be specific about what they want.

 

[glenn walker]

Not an issue move on you are not appraising the cash or financing

 

[J Grant]

A borrower paid cash to purchase a home back in Oct/2021 & public record indicates transaction was done Nov/2021 (owner of public record is the borrower's LLC)

However, AMC sent order (01/2022) as purchase appraisal and RPA shows date of contract Oct/2021, so I called the borrower & he said it's for "late purchase loan(?)".

Usually a borrower doesn't know much about real estate transaction or loan process, so I assume he might give me a wrong info.

Does anyone know what late purchase loan is? I googled it but couldn't find info.

He already paid in cash(no appraisal required) back in Oct/2021 & transaction was completed in Nov/2021. So isn't it supposed to be a Refi?

Please advise if there's something that I'm missing or misunderstanding.

Thank you

When you say the transaction was completed, on Nov 2021, do you mean the house closed and transferred title to this borrower ?

The fact he paid cash does not matter ( and a buyer can still get an appraisal /use financing even with a "cash" offer - which really means no finance contingency )
Does this borrower own the house now?-

 

[Dublin ohio]

If it was a cash sale then it was not financed it can't be a re-finance

So if you own your house free and clear and than decide to take a loan out on it. Then what is the purpose of the loan and use of the appraisal?

 

[Charles West]

Sounds like they are pulling cash out, maybe for repairs. Makes sense to borrow at 3 something and the LLC likely means it's going to be a rental.

 

[Dublin ohio]

Please advise if there's something that I'm missing or misunderstanding.

I am working on one now with similar situation. Borrower paid cash late in December. Client order says refinance. I am seeing more of this in this hot market. Cash offers can many times make the deal. They mortgage the house after purchase for whatever the reason.

 

[J Grant]

It does not matter if the borrower paid cash or not, once they close on the house they own it, and after they own it, if they take out a loan it would be a refinance or home equity loan

 

[Tim The Enchanter]

It does not matter if the borrower paid cash or not, once they close on the house they own it, and after they own it, if they take out a loan it would be a refinance or home equity loan

If they paid cash, there was no finance, maybe it is just a fi.
Umm. Someone dream up and add punch line please.