Mortgage Blog

A little bit rate changes

August 12th, 2016 1:39 PM by Eric Fang

Because the lenders are busy now, some of them changed the policies. They only offer the best rates for those who have only one property or for the purchase. I  do not know the exact reason, but I guess if you have only one property, then it's easy for the underwriting, easy for the sale to the investor, and they can do more business this way.

I just failed one transaction last week. It was a purchase, and everything was not right for this transaction. And I suggested my borrower to withdraw, and he did not listen and we failed anyway. 

There are lots of odds for this purchase transaction. 1)Tenant had the problems for the payment. And we need the rental income to qualify for the loan. 2)Gift funds had the problem as well, the person who wired the funds was the person who gifted the money. So it made the transaction very complicated. And even if the gift money or the funds problems resolved, the whole transaction depends on the tenant's rental check. The tenant was late for one month. If the lender asked for two checks, the transaction will fail right away.

And on top of that, the 401k loan payback term was wrong, so the monthly payment were very high. And I was not aware of the vacation until only a few days ahead of the trip.

The selling agent was so mad. And he argued why I could provide the pre-approval at the beginning. I told him that we did not have the tenant issue before. And I do not know there are any assets problems later on.

So one lesson learned, whenever the borrower wants to have the gift money from foreign country, please talk to your agent ahead of the time. A little bit preparation is better for any transaction.
Posted in:General
Posted by Eric Fang on August 12th, 2016 1:39 PM



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