Banco Popular....100% Watch out

By
Real Estate Agent with RE/MAX Cross Country

If you are under contract with a buyer and Banco Popular is the bank you will need to find out if the loan program the buyer is seeking is still available.  We just had a buyer client get underwriting (coditional approval) and turned down by the Mortgage Insurance company.  The result, after dragging us along for an entire month after our close date, no sale.  The loan officer and processor were notified during the transaction that our loan program was no longer available.  The loan officer believed that because our file was already in underwriting that we would go thru so we kept on fighting the good fight.  Please keep keep in mind that the buyers in this case have good income to debt ratios and qualify for financing otherwise.  The problem lies with MI companies pulling back the reigns and not insuring loans they used to.  Please watch your qualifying, ask the loan officer a lot of questions and make sure if you are going 100% that you are getting an FHA loan.  Banco is notorious for dragging out the closing and I have had experince with this before so my gut feeling was that it would eventually close.  Banco does loans for folks who have no other option so sometimes it is worth the wait.  We all learned a little something this time.

Comments (3)

Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert
Thanks for this tid-bit of infor...
Apr 02, 2008 07:21 AM
JDo Doe
Barrington, RI
Ben - you should check out my blog daily as I would have saved you some time...
Apr 02, 2008 07:36 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator
I just lost a deal going through Banco because the buyers were approved for 5% down, and prior to closing, Banco decided they didn't want to do 5% down anymore, and they wanted 10% down.  The buyer didn't have 10% if they were going to pay their own closing costs, so buyers backed out.  I hate Banco!  They never close on time, and they don't care that the buyers really want the homes they're trying to buy.
Apr 02, 2008 09:35 AM