Common Property Red Flags for Mortgage Financing
From Our friends at Pacific Residential Mortgage Group
While infrequent situations arise that can make your client's mortgage loans un-financeable, being vigilant about these issues beforehand can save your client a lot time and heartache.
Here are some common issues to watch for before your clients write an offer, or before you accept a listing:
- Bad roofs, structural problems, missing railings or peeling paint can be instant deal breakers
- Loan programs like VA and FHA have stricter requirements; ask what type of loan your client is planning to use
- The property may be uninsurable for reasons such as unpermitted living spaces, dangerous living conditions or being out of building code
Condos & HOA Boards
- Investors will not fund loans if the property's HOA is in the middle of litigation
- The condo building must meet requirements of owner occupancy rules to be eligible
- Make sure the seller has the legal right to sell the property; any trust or probate issues may not be finalized
- Financing cannot be garnered for any property that has a lien against it, and will show up on a title search
I am always happy to help find any information needed on a property before an offer is made or before you decide to list a property. Call today. I am here to answer your questions.