Buying a home in Big Bear these days is not like it used to be a few years ago. If you were breathing and could sign on the dotted line, there was a lender out there that would find you a loan.
All joking aside, getting a loan for a property is tough. Home buyers not only need to come in with more money down, they need to have higher credit scores and all-around better financial stability. The lack of money available to be loaned makes it nearly impossible for all but those with the lowest credit risks to get a loan.
But, getting a loan is just as much about the property one is buying as it is about one’s financial ability to get the loan. The common assumption is that if the buyer is approved for the loan, then the loan will go through. This is definitely not the case. Many times a loan will not go through because of an issue that comes up with the property that is being purchased.
What kind of issues can come up? Take a look at the video below for a few things I have come across recently.
As a seller, here are some ways to minimize the risk of a property getting rejected by the lender.
Price the property correctly – talk with your agent about a realistic price or maybe even consider getting an appraisal before putting it on the market. Appraisal problems are the #1 issue I see with properties not qualifying for the loan.
Check the title policy – make sure there is nothing out of the ordinary that will raise red flags to the lender. Sometimes you will find items on the title report that have nothing to do with the property and are removed by the title co. with a quick phone call.
Check the home condition – if you know the roof is leaking or is in bad condition and will need replacement soon, it might be a good idea to take care of this prior to going under contract to sell. Getting a home inspection & termite inspection prior to listing is also a good idea as you will know what you are up against, up front, rather than finding out at the last minute and having less leverage.
It is important to understand that not only does the buyer need to be approved for the loan, but also the property that is being purchased.
Like the video above? Check out some of my other video posts.
The Mortgage Meltdown- How Did it Happen? What Does It Mean Going Forward?
New Loan Limits From FHA, Freddie Mac & Fannie Mae – What Does This Mean For Big Bear?
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