Getting a mortgage today can require a lot of documentation. Lenders are concerned about layoffs and furloughs that could affect the ability of their loans to be repaid. Fannie Mae and Freddie Mac have tightened their asset documentation requirements from 120 days to 60 days old. Employment is being verified more than once. Self-employed borrowers have to provide year-to-date profit & loss statements. Some clients have expressed their displeasure with these requirements, calling some of them ridiculous. I have to agree, however, loans today are not made for the benefit of the borrower, they are made for the benefit of the lender.
Many borrowers choose to forbear on their payments due to their personal circumstance. With that said, they cannot qualify for a new loan until they bring their payments up-to-date.
When signing for the new loan, most lenders are requiring borrowers to sign a form stating that they will not forbear on the new loan. The borrowers who have chosen to forbear on payments may have difficulties moving forward.
Click link to Wall Street Journal for information https://on.wsj.com/32oRbGm
Are you considering to forbear on mortgage payments? We offer a variety of products and services, ask us how we can assist you today.
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Years ago, when our parents and grandparents went to the local bank to get a loan, they would meet with a banker who they likely knew. The banker would consider many factors, including their personal relationship, in determining whether to approve the loan.
This is not the case today. Today, it is about the saleability of the loan.
As you know, an appraisal provides an opinion of value of the property, but, did you also know the appraisal contains comments on the condition of the property?
An appraiser will comment on the condition of the property based on what they see during their visit. They will not inspect the property like a property inspector, if there is something they see that may need repair, they will comment on it in the report.
For example:
If they see stained ceiling tiles, they may call for the roof to be inspected. If they see a window is cracked, they may comment that it needs to be replaced. The appraisal report will conclude that the property’s value is “as is” or “subject to” the repairs.
If it is “subject to,” then the appraiser will be required to go back out to the property after the repairs are completed to give a final report. The appraiser will charge a fee for this final inspection.
We offer a variety of products and services, ask us how we can assist you today.
Any adult, pursuant to that state’s laws, can apply for a for a mortgage loan.
According to Fannie Mae, “borrowers who are natural persons and have reached the age at which the mortgage note can be enforced in the jurisdiction where the property is located” can apply; there is no maximum age limit for a borrower.
An exception to the above is an inter vivo revocable trust. We have closed loans in the name of the trust.
However, a LLC, Corporation, or Partnership cannot apply for a conventional residential mortgage loan. The loan is made to the individual, and the individual is personally liable on the loan.
There are cases where if you are purchasing an investment property, we may be able to title the property in a LLC or corporation.
Contact us for details! We offer a variety of products and services, ask us how we can assist you today.
