Financing in San Francisco>Question Details

Alison Hillm…, Other/Just Looking in San Francisco, CA

Why do lenders care who makes the Mortgage Payment?

Asked by Alison Hillman, San Francisco, CA Tue Apr 30, 2013

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5
Gregorio Denny’s answer
BEST ANSWER
I'm not sure I understand. The lender doesn't really care who makes the payment, they care who is responsible for making it. If you are approved and qualified for a mortgage and your name is on the note, you can have your friend's cousin's nephew make the payment for you if you want and the lender won't care. They will only care if title changes or you stop making said payments.
0 votes Thank Flag Link Tue Apr 30, 2013
There is a Mortgage Increase hike for an Investor, as they will be renting it out.
Hence, Banks care, as they want to be paid more, as a Borrower is making money
on Borrowed money.

Best regards
Perry
0 votes Thank Flag Link Sat May 4, 2013
We also take into consideration if the house will be owner occupied, a second home, or an investment. They are varying levels of risk to each of those occupancy types!
0 votes Thank Flag Link Sat May 4, 2013
Hi Alison,

To stop Money laundering.

Is one answer.

Thanks
Jacob
0 votes Thank Flag Link Tue Apr 30, 2013
Are you really asking why an entity lending significant amounts of money cares who repays them?
0 votes Thank Flag Link Tue Apr 30, 2013
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