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10 ways to murder your loan
In today's mortgage market, it's becoming harder and harder to secure that loan. Alan May provides us with a super list of 10 things to know that can make make or break it for you.
Here's a handy list of 10 things you can do to kill your chances of getting a loan today.
1. The house just needs too much work.This applies to REO's, foreclosures, and short sales... sure they're good deal, but the financing can be rough. Any broken windows, bad appliances, leaking roof, water damage, obvious mold, health or safety issues, structural problems and of course any liens.
2. Low AppraisalAppraisal used to be a "rubber stamp"... those days are long gone and best forgotten. Today, appraisers are trying hard to "prove up" your purchase price... and standards have become tougher (good!). If the appraiser can't, in good faith, shore up your purchase price... they're just not gonna. Re-negotiations (post appraisal) are becoming much more common.
3. Borrower has too much debt.Back in the day, large debt/income ratios were given a "blind eye"... no more. 35-40% debt ratios are the top end... the guidelines have become very tight... and if your buyer does qualify... make sure they ... more
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