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Unformatted text preview: Debts – Sell some encumbered assets. Long term debts can hurt a buyer who is trying to qualify for a new loan. Junior Financing – Encourage the seller of the property to take back a second trust deed (and maybe even a third trust deed at a different interest rate or loan period). Down payment – Increase the amount of the down-payment. Price. Encourage the seller of the property to lower the price. Obtain another appraisal, when the first appraisal seems high. Credit Rating – Obtain a copy of the credit report received by the lender and correct any misinformation which caused the loan to be turned down. Co–Mortgagor – Obtain a co–signer to supplement the income qualification. CLOSING THE LOAN
If a loan is approved, the mechanics of closing the loan are usually coordinated through escrow or either by the lender's in–house escrow department, by an outside escrow company, or by an escrow department of a title insurance company. A complete escrow includes written instructions by the borrower and lender as to what is to be done to close the loan. ASSEMBLY OF REPORTS
Escrow usually gathers together all required reports and information for review and approval by the parties involved. These typically include: 14-28 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING
Statement of identity – A title insurance company frequently requires a statement of identity to distinguish a principal from other persons with a similar or identical name. Down-payment, in the form of a cashiers check. Title report, showing condition of title as to conditions, covenants and restrictions (CC&Rs), claims of record, etc. Beneficiary statement or demand for payoff from the seller's lender. Offset statement from the property owner, when existing loan documents are being sold. Property tax information. Survey, if required, showing exact location and physical condition of the property. Home inspection report, if one has been made. Fire insurance policy....
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- Spring '10