Using A Power Of Attorney For A Mortgage Transaction In San Diego CA
San Diego CA - San Diego obviously has a large amount of active duty military personnel, some of which purchase homes (or refinance) while they are deployed. When buying a home, many will use a power of attorney (POA) giving someone else the power to sign for them in their absence. This goes for Conventional, FHA, and VA financing.
And sometimes, buyers are just out of town, whether it be for an already planned vacation, or a spouse that travels frequently for business. I have a client that works on an oil rig for 6 weeks at a time, and signing loan documents on the rig is just not feasi
ble. A power of attorney is convenient in these situations.
Lenders are fairly lenient on the language of the POA, but the last word is ultimately up to the title company. The type of POA required is known as a "specific" power of attorney which mentions the specific address involved in the purchase transaction.
Regarding the initial loan disclosures: most lenders will NOT allow the use of a power of attorney for the initial loan disclosures.
Fortunately, digital disclosures where the buyer can reveiw and acknowledge recept of them online, have become more available, but typically only for Conventional financing.
It is important to check with your buyers to see if they are going to be available during the entire process and if they plan to use a power of attorney for a mortgage transaction in San Diego CA. If so, have the title company (and lender) review it as early in the process as possible.
The use of a POA affects how loan documents are drawn. The buyer's name on the loan documents must match how his/her name appears on the POA. If the loan documents are signed incorrectly, they will need to be resigned adding time to the closing process. As some transactions are tight on time as it is, why take the chance?
NOTE: The Power of Attorney commonly generated by the military may be all encompassing, however, it is typically not specific enough for a real estate transaction. Again - when Using A Power Of Attorney For A Mortgage Transaction In San Diego CA, have it reviewed ASAP!
Looking to purchase or refinance property in California? Contact Kevin Kueneke with Mann Mortgage today by calling 760-500-1919 or click HERE to Apply Now.
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