What To Do When The Seller Refuses To Do Repairs On A Purchase...

Hello,

If you are buying a house that needs minor repairs - but the seller refuses to do them - what do you do?

This situation happens a lot, especially on bank owned homes.

The simple answer is to use an escrow hold back. ...an escrow hold back is a small amount of money that is held out of the seller's proceeds from the sale to make the repairs.

You have to write the escrow hold back right into the contract - under special provisions. To avoid having to rewrite this clause - be specific. Your realtor will need to write - "An escrow hold back in the amount of $______ will be used for (specific) repairs."

One key with the escrow hold back is the repairs need to be minor - and they can't take that long to finish. ...an average amount of an escrow hold back is $1,500 to $3,000.

Knowing how to solve minor repair problems on an offer - can sometimes make the difference between getting a great deal on a house, or not buying it at all.

If this situation comes up with your deal - just give me a call - I can help you out.

Have a good day today! ...and thanks for reading.


Brett

If Your Debt To Income Ratio Is Too High - Here's A Way Around It...

Good Morning!



If you are trying to get a conventional mortgage - and you've been told your Debt to Income Ratio is too high... Then this email is for you!



There are two parties that decide what your maximum Debt to Income Ratio is... Fannie Mae/Freddie Mac, and the Mortgage Insurance companies.



I've seen Fannie Mae approve Debt to Income Ratios as high as 60%. ...However, the MI companies have come out and said that they will not insure mortgages with Debt to Income Ratios higher than 41%.



So, if your DTI ratio is higher than 41% - you're out of luck.



...unless you know me.



I can still do conventional loans with DTI ratios higher than 41% because we have portfolio products - and these don't have MI on them.



Just a tip for you.





I hope you have a good day today.

Thanks for reading!



Brett

The Feds Are Making More Rules...

Good Morning! ...and, I hope you had a great new year's day!



The mortgage industry is changing again today.



The federal government has mandated new Good Faith Estimate guidelines that go into effect as of January 1. ...More and stricter rules.



I'm all for rules that protect borrowers.



...The feds are squeezing mortgage brokers. They are continuing to make life more and more difficult for them.



In my opinion, if the federal government has their way - in a couple years there will only be a few big banks doing mortgage loans. ...Mortgage brokers will be no more.



...That's too bad.



Fortunately I work for a bank - so I will be safe... ...however, I'm also a broker.



The reason it's too bad - is that as mortgage brokers continue to die off - so does something else... Consumer choice. ...Options for borrowers.



For instance, if you submit a loan to Wells Fargo for a mortgage - if it doesn't fit into their mortgage guideline box you will be declined. ...end of the line.



If you submitted your loan to a loan officer that has the option to bank or broker - he or she could look at the profile of your loan and decide the best place to submit your loan that will best match the underwriting guidelines. ...so you will be approved.



It's very important to you to place your loan with a loan officer that has different options on where to submit your loan. ...just my opinion.



I hope you have a good day today.


Thanks for reading!



Brett