Property Q&A in Westminster>Question Details

SIMPLI123, Home Buyer in Westminster, MD

What is a mortgage lender looking for when they are deciding if a house is financable? What makes a home nonfinancable?

Asked by SIMPLI123, Westminster, MD Thu Oct 27, 2011

Help the community by answering this question:

Answers

5
BEST ANSWER
Good Morning Simpl123,

For the purposes of a purchase the bank will want to have an appraisal to ensure that the value of the home meets or exceeds your contract price. Further, depending on your loan type they may have other qualifications. For FHA loans all systems must be in working order and they will want repairs made to any items such as chipping or peeling paint. They also look for safety issues. VA operates under the same guidelines. The house must be livable as is and must have a stove.
0 votes Thank Flag Link Fri Oct 28, 2011
You know I thought my answer was what you wanted to know. Until I read the other answers. Clearly I missed it. So as an LO what we need is pretty simple. A home that is safe and liveable. Laura is right a stove is needed. So is a fridge. I get a lot of calls for rehab loans. So I ask what needs to be rehabbed. It's ususally
0 votes Thank Flag Link Fri Oct 28, 2011
The house I am looking at needs some work - i know the roof needs to be redone and some drywall needs to be replaced. Wanted an idea of what sort of things would cause a lender to say "no" we will not finance this house. I have purchased homes before so I know what I need for my finances to be acceptable. But I have never purchased a home that needs work so I was looking for pointers so I have an idea of what the house must have and what can wait. I would never have thought a house "needs" a stove to be financable - so was just looking for more info along those line.

thanks!!
0 votes Thank Flag Link Fri Oct 28, 2011
When reviewing a property, typically with an appraisal, the underwriter is looking for the home to be habitable amd marketable. It has to be safe to live in and they also need to know if you are unable to stay in the house and it has to be sold, is it a property that people will want to buy.
0 votes Thank Flag Link Thu Oct 27, 2011
It's not the house it's about the person for the most part. Borrowers have to get pre-approved before they can submit offers. To do that you SHOULD have the following reviewed by a loan officer.
I rank them in order of importance.
1. Credit scores (from a lender not FREE sites)
2. Income- W-2 or self employeed? Part time job etc.
3. Assets-how much, where is it, did anyone give you money, any unexplained deposits etc.
That will get you started, there is more after you get pre-approved and have a contract to buy a home.
Hope this helps and please let me know if you need more information.
0 votes Thank Flag Link Thu Oct 27, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer