the house must be listed thru the MLS before getting my loan approved. What is up with that? I do not understand at all!
2007-02-21 08:12:30 · 12 answers · asked by L D 3 in Business & Finance ➔ Renting & Real Estate
Property located in TX, was appraised last week for $95,000/purchase price is $89,000. We have done an 8 month lease purchase on the property so we have resided there during the entire 8 months. House was not listed previously as renters were in it the last 2 yrs and moved out right before we moved in.
2007-02-21 08:54:03 · update #1
Go to a new lender immediately. To finance a house all you need is a valid purchase and sale agreement. Lenders concerns with arms length transactions has no bearing on whether the house is in the MLS or not. They prefer not having the loan rep directly related to the borrower, selling the same house, or residing at the same address.
2007-02-21 14:29:33 · answer #1 · answered by Kevin H 4 · 2⤊ 0⤋
They are clearly concerned about this being a "non-arm's length" transaction. Do you know the seller previously? Related to them?
Banks have found that they lose money more frequently, and are more prone to find fraud in a transaction, when the buyer and seller knew each other prior to the purchase. This can range from an inflated value and the buyer getting cash back under the table after closing, to an undisclosed foreclosure bailout where the seller still stays in the property.
These are real risks, and the banks lose real money, lots of it sometimes.
But usually, instead of forcing someone to post their home on the MLS, they'd usually just do a 2nd review appraisal through an approved vendor for the bank to make sure the purchase price and values are where they should be.
I don't know what the solution for your deal is, except to ask for an exception, a review appraisal, or simply slap the house on the MLS for 24 hours. Or find a new loan officer.
Good luck.
2007-02-21 08:47:17 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 1⤊ 0⤋
The house does not need to be listed in MLS, but there are some potential barriers that are in place when it is not.
1. Is the home sale an Arms-length transaction?
2. Are you going 100%? Stated income?
3. Is the home located in a high fraud area? Declining neighborhood?
4. What is the condition of the home? Is it in a standard neighborhood?
5. Is the seller paying closing costs?
6. How solid is the appraisal report?
All of these factors can influence an underwriter's lending decision, and believe me there are more.
Almost all lenders given a good condition home, solid down payment, strong credit scores, no seller conditions, from an unrelated seller can offer a mortgage on a non-MLS listed home, that has no unusual twists.
2007-02-21 08:46:08 · answer #3 · answered by walkinandrockin 3 · 1⤊ 0⤋
Being hideously ugly doesn't come into play here. No matter what the daughter looks like, a buyer cannot be forced to use a specific lender. Many lenders will not deal with new condo complexes until they are a certain percentage sold. There's more to it than that, I just can't remember what. You use any lender you want, but you may have to search a bit. The other thing is that the board will have to supply the lender with certain items, like a copy of the master insurance policy. In this situation, I have a feeling they'll be less than co-operative. If they're realtors (members of the local real estate board) you might notify the real estate association of this unethical and illegal practice.
2016-05-24 04:02:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Not sure why they are telling you this. I do For Sale By Owner Property all the time, and this is a first for me. Not sure why yours is wanting it. Go with another lender, one that does For Sale By Owner property. Did they say why????
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
Cost associated with your loan. You will need to pay for the appraisal up front (when it being done). You will need to pay for The Home Owners Insurance Coverage for 1 YEAR . The seller can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, broker fee, processing fee, flood cert, etc can be paid for by the seller.
The Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process.
2007-02-21 12:27:29 · answer #5 · answered by W. E 5 · 0⤊ 0⤋
I have never heard of that before - and I've been selling real estate in Texas for fourteen years.
1 - Is the mortgage company owned by a real estate company? Or vice versa?
2 - Are you and the seller asking the loan officer to do all the real estate agent's work? Contract, etc.?
If you and the seller have been able to do your own contract - and it's actually complete - then I cannot think of why the mortgage company is asking for you to have the house in the MLS.
Ask them WHY do they want it in the MLS.
2007-02-21 11:52:10 · answer #6 · answered by teran_realtor 7 · 0⤊ 0⤋
Be very wary of Brokers, I am buying a house and just got taken to the cleaners by a broker who pulled out financing at the last minute. I am now using CityStar Mortgage(Richardson TX), they have great customer service and are closing on my house with only one week notice.
2007-02-21 10:55:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
The owner may have signed an "exclusive right to sell listing," agreement with a Real Estate agent at one time or another. This means the real estate agent keeps paid for the sale of the home regardless of whether he/she seels the home. It could also have something to do with the laws of your particular state and/or county. If you provide the state, that would help.
2007-02-21 08:26:50 · answer #8 · answered by codenamex_47 3 · 0⤊ 0⤋
That's not true, you just have to have an executed purchase contract. Ask for a different loan officer or someone that knows what they are doing. They probably have never worked with a private property sale before.
2007-02-21 08:17:10 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Go to www.therealestateinsiders.com (the real estate insiders ) you can email them with your question. Ask them where the best place to get the mortgage and what kind of mortgage would be best for you..they won't charge for the advice..
2007-02-21 08:29:34 · answer #10 · answered by gvh 3 · 1⤊ 0⤋