Just imagine; You found a home in Broward County that you were interested in buying, wrote a contract, spent money on home inspections and a appraisal. Then on the day of closing you financing falls through at the last minute. what now? Not just can this be a very frustrating situation, but a costly one as well.
Tighter mortgage underwriting standards make it more critical than ever for home buyers to make sure they are qualified for the home purchase.
However, because of new requirements under the Real Estate Settlement and Procedures Act (RESPA), many lenders are no longer issuing mortgage pre-approvals, only mortgage pre-qualifications. Homebuyers should make sure their mortgage broker, or lender has verified their income and assets. It’s best to talk to someone face to face and make sure they have thoroughly gone throughout the mortgage application. This provides you with a little confidence that your mortgage will be approved on closing day.
Tighter lending standards and heightened concern about mortgage fraud also mean more time consuming paperwork. Mortgage brokers have had to relearn the loan underwriting process, double check all paperwork, and ask all the questions up front.
For example; not only do FHA home buyers who receive funds from a family member have to disclose the gift and its source, but the person making the gift must also show where the funds came from. It’s easy to overlook this loan requirement, but the mortgage will not fund without it.
New condominiums can be a particular loan challenge because the FHA requires that fifty (50) percent of the development’s units must be under contract before the they will approve financing for individual condos. Unless an exception is made, a buyer will have to shift out of an FHA mortgage product. Lenders are also asking to see statements of homeowner’s association reserve funds prior to approving a loan. This can create a great deal of difficulty at the last minute if the HOA isn’t cooperative.
So how do you make sure your mortgage financing does not fall trough at the last minute? Make sure you use licensed real estate professionals that will closely monitor not just your real estate contract, but your mortgage process as well.
Realtors at OCS Realty, llc. are required to turn in copies of the Real Estate contract along with pre-qualification letters of the buyers to ensure that your home purchase will close.
