Home Buying in Blythe>Question Details

Fernando, Home Buyer in Blythe, Califonia

I'm in escrow on a house. I have been waiting for about a month now and just today my loan officer called me

Asked by Fernando, Blythe, Califonia Fri Feb 1, 2008

and told me that the underwriter wont approve the loan or something like that because of the soft market??? She said that since the market is the way it is the appraisal with be cut 5% or something like that. Does anyone know about this and explain it better for me???Please!!!

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5
Grace Hudson’s answer
Hi Fernando, my understanding is that the federal government has put this restriction on loans in an area deemed a "declining market" area. These are Fanny Mae and Freddie Mac loans which are the main loans being obtained by buyers now. There are other programs that are specific to these loans and may help you have an even lower payment without putting any more money down. I know a lot of my clients have had the same problem as you and my lender found them fantastic loans that ended up making their payments even lower (and they are 30 year fixed) with no additional money required. I know you have already been given other lenders phone numbers but I have one that is out in your area that has really educated my clients and got them amazing loans and she is close to where you are so that will make it easy for you. Her name is Sue Miller and her number is 928-200-4078. Hope this helps you like it has my clients. Good luck!!!!
1 vote Thank Flag Link Sat Feb 2, 2008
Hi Fernando,

Some lenders, in order to protect their investment are reducing the amount they are willing to lend on a property by 5%. The idea being that by reducing the loan value by 5% they are hedging their bet that the amount they loan will be less than the value of the home so that should the loan be defaulted upon they would be able to recover their loss easier.

You might need to bring additional funds in to close the deal. You can also talk to other lenders to see if you can find another lender that would be able to write the loan you need and an interest rate you can still afford.

I hope that helps and good luck with your transaction.

Take care,

Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922
Web Reference: http://Route66Living.com
1 vote Thank Flag Link Fri Feb 1, 2008
Fernando, I am so very sorry this is happening to you. At this point you need to speak to your Realtor and get his/her advice. Is the seller willing to come down on the price? Are you willing and/or able to make up the difference in the price?

Marie Richarz with Metrocities is a good person for you to contact. She is here in California and if anyone can pull this off she should be able to. Just as Irena said, I do not get any referral fee or commission by recommending her. I just know that she is an excellent loan officer.

Her email is:
mricharz@metrocitiesmtg.com
Web Reference: http://www.DotChance.com
1 vote Thank Flag Link Fri Feb 1, 2008
Thanks Everyone!! I appreciate the comments!
0 votes Thank Flag Link Sat Feb 2, 2008
Our Mortgage consultant has explained it to us that some banks do that, I am not advertising for her since I do not get paid by her or the lending institutions but e-mail her and she can explain it better.
Mary Beth-O’Keefe MaryBeth.OKeefe@NEMoves.com
0 votes Thank Flag Link Fri Feb 1, 2008
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