ATTENTION: For Those who are serious about Getting Pre-Qualified FAST!
Bill Rapp, Mortgage Originator: NMLS 228246
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What People Are Saying:
Excellent Service
Bill is an exceptional loan officer. He helped us to purchase our home with very personal and professional service. He helped us navigate the whole process from start to closing without any problems. We didn't think we're qualified to purchase a house, but Bill went above and beyond to find a way to help us achieve our goal. He always responded very quickly with our requests, he would come back with different options with comparison chart to clearly indicate how much we need for down payment, monthly payments, interest rates, closing costs etc.
We would highly recommend Bill to anyone in need of lending services. In fact, we have already recommended Bill to one of our friends on purchasing a house.
ďťż--- David Chan - Houston, TX
Bank Statement Lending!
William Rapp of Network Funding, L. P. was very professional and I felt comfortable in dealing with him. I will definitely recommend him to family and friends.
ďťż--- Ian F - Missouri City, TX
Professionalism - Expert In Home Style Loan
Bill is an expert in the topic, his explanations and online material make a difference and he is always there from the beginning to the end. He is committed to make thing happen.
ďťż--- Felipe Caldern & Carolina Angel Gutierrez
Great Service!
Bill Rapp's handling of our loan (even though out of state) was unparalleled to any service I have been through prior, including 3 different real estate transactions and multiple refinances. Extremely quick close, with great options and flexibility for my families needs. All around A+
--- Chris & Beth Sheehan - San Jose, CA
Knowledgeable and Responsive!
Bill was a pleasure to work with and he made the loan process fairly easy. He answered all questions I had very quickly and was straight forward in doing it. I would recommend Bill to others.
--- Wes Brady - Richmond, TX
Very professional and always returned our calls!
Bill takes a lot of pride in his job and is very dependable. They were very patient and understanding. He went out of his way and explained all my questions and concerns. They were very professional and returned my phone calls and emails. He did a great job and I fully recommend him.
--- Therese, Malcom & Shirley Teixeira - Katy, TX
Great Job!
Bill helped us out from beginning to end of loan process. The loan closed in a timely manner as Bill worked hard with bank to get our to the final steps.
ďťż--- Kamal & Theresa Wilson - Hartford, CT
Avid Problem-Solver and Absolute Pleasure to Work With!
Bill Rapp worked very hard to ensure that we closed our loan and were able to move into our new home. He always had alternatives to any problems we encountered while closing. He worked with us from the beginning identifying solutions to any problems that we were having. He was an absolute pleasure to work with!
--- Nikita Rayani & Sanit Tejani - Houston, TX
Awesome to work with!
Being a first-time buyer I came in with lots of questions and concerns. Bill was always available for any questions I had and answered everything to my satisfaction. Bill made the loan process so painless that I could still concentrate on other things. We ended up closing early which made things even better. If you are in need of a lender and want someone who is very approachable and stays on top of your loan then Bill is your guy.
--- Cesar Raya - Richmond, TX
Loan Declined by my bank, and he saved the day!
Bill, did an amazing job helping me close on my house. He took the reigns and reassured me the best route to take to help close. He was accountable, thorough and trustworthy. I will continue to work with Network Funding, L.P. when it comes to home buying in the future because of the quality of service Bill gave.
--- Jacob Smith - Boerne, TX
Bill Rapp Will Definitely Make It Happen!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Corinne Wilson - Roselle, NJ
Knowledgeable, Honest, Trustworthy, and Reliable!
"I will definitely keep you in mind. If anyone I know needs financing, I will send them your way!"
--- Jon & Andrea Saleem, CRPC Financial Advisor - Houston, TX
Best Dam Mortgage Guy a man could know!
"Hands down the best loan experience to date!"
--- Gabe & Chelsea Jackson - Pearland, TX
Phenomenal, Hard Working and Never Quits!
Had a stupid foreclosure that could have been avoided if exâs attny would have sent my buy out offer. So Bill was able to push this through with a 4 year foreclosure. He worked his butt off, was very diligent with his communication; and was very professional talking to me even when I was screaming and/or crying at him. Highly recommend this lender. He really go to the ends of the earth to help you!
--- Liz Keeter - Harlingen, TX
Exceptional customer service!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Isha Lopez & Mauricio Garcia - Houston, TX
Service with a capitol S
Bill went above and beyond at every turn. He worked late on Saturday, he worked late all the time. We wanted to close ASAP and he really helped make it happen for us.
--- Jeff & Wendy Heger - Houston, TX
Best Buying Experience!
I would would highly recommend going with Network Funding LP. As a first time home buyer I didn't know what to expect. Bill Rapp was very helpful in answering all my questions and guided me through all ghe steps. I couldn't have asked for a better buying experience!
--- Tabitha Turner - Humble, TX
Would recommend him and use him again!
Very involved and professional . Kept me informed and up to date on everything that was going on Went with me closing and was very helpful and knowledgeable.
--- Kathy Ward - Houston, TX
Great experience!
Well I meet bill back in December 2016 he got recommended by my real estate agent we had a house in sight and started the process to get approved but we fail due to my work history and credit bill told me not to give up and put me in contact with a credit repair company they help me bring my score up and bill walk me thru the process of getting a new line so this time around we got approved before looking for our house after we found it we still had a couple of hick up but with bills help on Sunday 6-18-17 to be exact Father's Day bill called me to give me the great news that we had got approved and the closing date was as scheduled bill was more than just a lender to my family he became a friend and I'm alway going to have him in mind for any other financial situation.
--- Alejandres Felimon - Richmond, TX
I really liked his attitude!
I wouldn't usually say this but the way he had handled my mortgage was really pleasant. I personally enjoyed the time spent with him while we discussed feasible rates. He's a great man with a great personality and he offered really low interests as well. Definitely recommend him to others.
--- Tom Troiano - Atlantic City, NJ
He's nothing short of a miracle!
I'm a self-employed businessman and had him figure out the mortgage of the house after 30% down payment. The interest rates I received were incredibly low given what I had thought of earlier. One other important thing to note was that I hadn't really taken any loans earlier, so I had no credit history. He helped me out with all that as well so I can't really call him anything else but a miracle.
--- Fran Suarez - Cleveland, OH
He's really helpful!
I made a bid to him and the very same day he gave me an offer which I couldn't resist. It was too intimidating with those incredibly low interest rates and all, thoroughly recommend him.
--- Kenny Mickle - Houston, TX
Expeditious!
Bill was very expeditious and made it real easy going through the loan process. I felt he was on top of things.
I deal with investment properties and will more than likely call on him again.
--- Wayne King - Pensacola, FL
Bill was great!
Bill made us feel like a friend all the way thru the process. He was patient and explained everything he needed clearly. He was available ANYTIME we had questions or needed more information. Hopefully we wonât go thru this process again anytime soon, but if we do - weâd choose Bill! =)
--- Barbra & Nick Grimmer - Austin, TX
Great broker!
Bill was a great broker to work with. As first time home buyers we had many questions about the process, Bill took the time to help us even calling us back on weekends with answers. I would not hesitate to recommend him to anyone looking for a broker to work with.
--- Murray & Lisa Turner - Pensacola, FL
Outstanding service!
I couldn't have been more pleased with Bill's level of service. He made what is typically a lengthy, arduous process far quicker and easier at every turn. I'm extremely comfortable recommending Bill to friends and family, and will definitely utilize his services again!
--- Jim Lipari - Austin, TX
Step-by-Step Guide to the VA Loan Process
6 Easy Steps to a VA Loan
For many borrowers, applying for any kind of mortgage may seem daunting.
But, when broken down, this rundown of 6 steps to getting a VA loan is easy to understand.
1. Select a VA-approved Lender
On the surface, it might appear that any lender will do. However, if you dig a little deeper, you may discover that not all lenders are the same. First, only lenders approved by the U.S. Department of Veterans Affairs can originate VA mortgages. Secondly, some lenders focus primarily on conventional loans, while others concentrate almost exclusively on the VA loan program for military clients. Using a VA specialty lender with extensive knowledge about the VA loan process vs. a lender who only funds a few VA mortgages a year may translate into an easier and quicker loan process. To connect with a VA specialty lender, please click here.
2. Obtain a Certificate of Eligibility (COE)
An experienced lender can help you obtain whatâs called a Certificate of Eligibility (COE). The COE will prove that you meet initial eligibility standards for VA loan benefits. It will also let the lender know how much entitlement you can receive, which is the amount the Department of Veterans Affairs will guarantee on your VA loan. To get your COE, youâll need to give your lender a bit of information about your military service. Usually, a COE can be acquired online instantly through a lenderâs portal or through the eBenefits portal on the va.gov website. Those servicemembers or surviving spouses whose COEs cannot be obtained online will have to get theirs by mail. A VA lender or the VA can help direct you to the right resource for your specific situation.
3. Pre-Qualify for Your Loan Amount
Pre-qualifying is important, but not required. By choosing to complete this step you can save some time and potential surprises later in the process. To pre-qualify for your loan amount, youâll have a candid conversation with your VA loan professional about your income, credit history, employment, marital status and other factors. Giving your lender complete details during the pre-qualifying step can help prevent surprises later during underwriting. The pre-qualifying step can also reveal areas that need improvement before you can be approved, such as credit or debt-to-income ratio. While a prequalification letter gives you a ballpark price range for house hunting, it does not guarantee that you will be approved for a loan, and your lender will later have to verify the information you provide. To get a loan requires later final approval by underwriting once all documents have been received and reviewed (see Step 5).
4. Go House Hunting & Find Home
The fourth step is usually one borrowers enjoy because they get to look at homes they might consider buying. Working with a real estate professional who specializes in the VA process can help you get the most out of your benefits. This is true because the VA allows certain fees and costs to be paid by the seller (if both you and the seller agree), and a knowledgeable agent will know this and help you negotiate seller-paid fees. Once youâve got a signed purchase agreement, you can move forward in the VA loan process.
5. Lender Processes Application
& Orders VA Appraisal
A signed purchase contract is the document youâll need to finish your initial application. Once your lender has the contract, they will order the VA appraisal. Here again, not just any appraiser will do. Only a professional who is certified to perform appraisals to VA standards can evaluate the home being considered for VA financing. The VA appraiser will make sure the price youâve agreed to pay for the home corresponds with the current value. Another very important part of the VA appraisal is to inspect the home to make sure it meets the VA minimum property requirements (VA MPRs). However, the VA appraisal does not take the place of a home inspection, which focuses on code violations, defects and the condition of the property. While many borrowers have heard horror stories about the length of the VA appraisal process, the Department of Veterans Affairs gives the appraisers 10 days from order to completion barring extenuating circumstances. While youâre waiting for appraisal documents, youâll be busy submitting documents of your own to your VA-approved lender to show you have the ability to qualify for the loan. If the home passes appraisal for value and VA minimum property requirements, and itâs verified by the lender that you qualify for your loan, the underwriter will give his or her stamp of approval.
6. Close on Your Loan and Move In
After being approved by the underwriter, all that is left to do is close and move in. During closing, the property legally transfers from the former owner to you. Closing is a step that requires you to sign documents that confirm you understand and agree to the terms of the loan. You will need to provide proof of homeowners insurance and, if required, pay closing costs. Once youâve signed all your closing documents, youâll get the keys to your new home.
While these steps may not happen in the order above or be a required part (such as prequalification)*, they represent the typical process for the applicant in obtaining a VA purchase loan. Your lender may need to take other steps. For more information about VA loans, contact an experienced VA-approved lender.
My best advice to you is to call Bill Rapp, the Mortgage Viking, today to discuss your options 281-222-0433.
đ The Balloon Payment Problem: What CRE Owners Need to Know Before Loan Maturity đ˘
đ The Balloon Payment Problem: What CRE Owners Need to Know Before Loan Maturity đ˘
â° Commercial Real Estate Loan Maturity Is Coming: How to Prepare for the Balloon Payment đ°
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The Balloon Payment Problem: What CRE Owners Need to Know Before Maturity
A commercial real estate loan can feel manageable for yearsâuntil the maturity date suddenly becomes the most important date on your calendar.
Unlike many residential mortgages that fully amortize over 15 or 30 years, commercial real estate loans frequently have a loan term that is shorter than the amortization schedule. That means the monthly payments may be calculated using a longer amortization period, but the remaining principal balance becomes due when the loan reaches maturity.
That remaining balance is the balloon payment.
For commercial property owners, the real problem is not simply that a balloon payment exists. The problem is reaching maturity without having a viable strategy for paying it off, refinancing it, or repositioning the property.
How a Commercial Real Estate Balloon Payment Works
Consider a simplified example.
Assume an investor obtains a commercial mortgage with a 25-year amortization schedule but a 5-year loan term.
The monthly principal and interest payments are calculated as though the borrower has 25 years to repay the loan. However, the loan matures after only five years.
At maturity, the outstanding principal doesn't disappear.
It becomes due.
Most commercial property owners don't plan to write a check for the entire remaining balance. Instead, the strategy is often to refinance the property, sell it, pay down the debt with available capital, or negotiate another solution with the existing lender.
That makes the maturity date a capital-markets eventânot merely another payment date.
Why Refinancing May Be Harder Than Expected
One of the biggest mistakes a CRE owner can make is assuming:
"I qualified for this loan before, so refinancing shouldn't be a problem."
The new lender is underwriting the property and borrower based on conditions that exist today, not when the original loan was made.
Several factors can change during the loan term.
1. Interest Rates
If your existing commercial mortgage was originated in a lower-rate environment, refinancing at a higher rate can significantly increase the property's annual debt service.
Higher debt service can reduce the loan amount supported by the property's cash flow.
2. DSCR
Debt Service Coverage Ratio, or DSCR, measures the relationship between a property's net operating income and its required debt payments.
A common formula is:
DSCR = Net Operating Income á Annual Debt Service
Suppose your property generates $250,000 of NOI and the proposed loan requires $200,000 of annual debt service.
Your DSCR would be:
$250,000 á $200,000 = 1.25x
If higher interest rates increase the required debt service, the same property income may support a smaller loan.
That can create a refinancing gap.
3. Property Value and LTV
Loan-to-value still matters.
If your property was previously valued at $5 million but is now worth $4.5 million, a lender applying a 70% LTV limit would produce maximum proceeds of approximately:
$4.5 million Ă 70% = $3.15 million
But even that amount isn't guaranteed.
DSCR, debt yield, property type, tenant quality, lease rollover, borrower strength and lender guidelines may further limit proceeds.
The maximum LTV is a ceilingânot necessarily the loan amount you will receive.
4. Occupancy and Tenant Rollover
A property can be performing well today while still creating concerns for a lender.
For example, imagine a retail center that is 90% occupied.
That sounds strong.
But what happens if several major tenants have leases expiring within the next 12 to 24 months?
The lender may analyze:
¡Tenant concentration
¡Lease expiration schedules
¡Remaining lease terms
¡Historical tenant retention
¡Above- or below-market rents
¡Tenant credit quality
¡Future capital expenditures
¡Potential downtime and leasing costs
Occupancy alone doesn't tell the entire underwriting story.
The Refinancing Gap
One of the most important concepts for CRE owners approaching maturity is the refinancing gap.
Suppose your existing loan has a $3.5 million balloon balance.
After analyzing today's interest rates, NOI, DSCR, LTV and debt yield, a new lender determines that the property supports only $3.1 million.
You now have a:
$400,000 refinancing gap.
That difference generally must be addressed somehow.
Potential strategies could include bringing additional equity to closing, increasing property NOI, restructuring the financing, negotiating with the current lender, finding a lender with a different credit box, selling the property or exploring alternative capital structures.
The earlier you identify the gap, the more options you generally have to evaluate.
Don't Wait Until 30 Days Before Maturity
Commercial refinancing takes time.
Financial documents need to be collected. The property needs to be underwritten. Lenders need to evaluate the transaction. Third-party reports may be required. Appraisals, environmental reports, title work, legal review and closing documentation can all affect the timeline.
That is why CRE owners should consider evaluating their refinancing strategy well before maturity.
Depending on the transaction, beginning the analysis 6 to 12 months before maturity can provide time to understand the property's current financing position and address potential problems.
The objective isn't necessarily to refinance immediately.
It is to understand your options before the maturity date controls your decisions.
Know Your Numbers Before Approaching the Market
Before refinancing, CRE owners should understand several critical metrics:
Current NOI: What income is the property actually generating?
Current loan balance: What will the estimated payoff be at maturity?
DSCR: How much debt can the property's cash flow reasonably support?
LTV: How much leverage does the property's current value support?
Debt yield: How does the property's NOI compare with the proposed loan amount?
Occupancy and lease rollover: Are tenants stable, and when do major leases expire?
Capital expenditures: Are significant repairs or improvements coming?
These numbers help determine whether refinancing is straightforward or whether a different strategy may be necessary.
One Bank's Answer Isn't the Entire Capital Market
Commercial real estate financing isn't a single-product marketplace.
Banks, credit unions, agency lenders, CMBS lenders, bridge lenders, debt funds and other capital sources can evaluate transactions differently.
One lender may focus heavily on sponsor liquidity.
Another may have a conservative LTV requirement.
Another may be uncomfortable with the property type.
Another may have geographic restrictions.
And another may simply have reached an internal concentration limit for that asset class.
That is why a "no" from one lender doesn't necessarily mean a transaction is unfinanceable.
It means you need to understand why the lender declined or reduced the requested proceeds and determine whether another capital source better matches the transaction.
Your Maturity Date Shouldn't Be a Surprise
The best time to discover a refinancing problem is not two weeks before your balloon payment is due.
Commercial property owners should treat loan maturity as part of their long-term asset management strategy.
Know the maturity date.
Monitor the property's NOI.
Understand the lease rollover schedule.
Watch your leverage.
Evaluate DSCR.
Estimate your potential refinance proceeds.
Then compare those proceeds with your projected balloon balance.
If there is a gap, you want time to develop a strategy.
Start With the Deal, Not the Loan Product
At the Bill Rapp â CommLoan Empower Program, the objective is not simply to find a loan product.
It is to understand the transaction first.
What is the property worth?
What does the cash flow support?
What is the existing debt?
What is the borrower's objective?
How much leverage makes sense?
And what type of capital source is appropriate for that particular transaction?
If you own commercial real estate with a loan approaching maturity, don't wait until the balloon payment is staring you in the face.
Start evaluating the capital structure early.
Bill Rapp â CommLoan Empower Program
Commercial Real Estate Financing | Capital Advisory
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Bill Rapp, CCIM
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ŠBill Rapp, CCIM - Director - CommLoan
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