Latest Underwriting Hot Buttons
July 12, 2012One CommentBuying A Home, Real Estate Mortgage, Videos Fannie Mae, Freddie Mac, Home Appraisal, Home Inspection, Inspection Home Repairs, Michigan, Michigan Home Loans, Mortgage, Mortgage Closing Costs, Purchase, Purchase Agreement, Real Estate Negotiation, Realtors, Underwriting Guidelines
Our business mix has been dominated by purchase transaction recently and we have witnessed some properties that have interesting quirks.
For example, one home had a view out the front yard of a cement factory. Underwriters have been digging in on issues like this and requiring additional comments from the appraiser to insure themselves from the daunting fear of buy back from Fannie Mae or Freddie Mac.
Another example was a home that was located 50 feet past the county road on a private road. The underwriters required documentation from the appraiser confirming that the private road did not affect the marketability of the home.
Both situations were resolved successfully, but required additional time for all parties involved.
A few reminders about renegotiation after home inspections:
- We have seen a lot of this lately where the buyer and seller go back to the drawing board based on the results of the inspection.
- Any additional monies from the Seller to the Buyer must be worded on an addendum as Seller Credit to go towards the Buyer’s closing costs and pre-paids – Nothing Else!
- Underwriters are trying to uncover problems with the property and that it is fixed by a licensed contractor.
We get asked all the time why someone should use us for their mortgage needs. Simple answer is we both work Monday through Friday from 7:00am to 7:00pm and Saturdays. We also each have 18 years of experience.
Finally, we made the big move last week! We moved about 200 yards east into the Green Glass building, Suite 108. Come by and say “Hi”!