Cape Coral Real Estate

It seems that the key phrase ‘job black list’ is somewhat a secret quote used in the lenders and mortgage industry.

I had no clue of its existence as an agent until my last buyer, moving from another state. He was pre-approved by a lender, and I wrote pre-approved, not pre-qualified. He had a top number on that document and I was sending listing with what he was looking for within his price range. So far, so good.

Once we had the right property, he came down, driving 11 hours, had a good few hours look at the property, made an offer, which has been accepted, made an inspection and survey. Everything was going smoothly when he suddenly got the news: his job is on the lenders’ “job black list”

So, what do you need to be part of that list exactly? You need a job, a career or a position that is making money only in the area you are practicing and which could make no money elsewhere. Let me give you some examples:

A self-employed individual who build his business locally and getting business from local advertising, as mortgage broker, plumber, electrician, lawn, Real Estate agent, insurance, painter, A/C maintenance, pool maintenance, and more…

Lenders have denied my buyer because leaving his state to move into another one, will put his income in jeopardy!

So, make sure that your out of state buyers are REALLY approved before putting any offer in writing. That moves can save time to all parties.

You can find helpful mortgage material HERE. This can help you the understanding behind the ugly scene

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Comments (0) Feb 20 2010

I learn something everyday. And yesterday was no exception.

At the first place, when this couple contacted me for their real estate needs, they were explaining what they were looking for, that they have been pre-approved, not pre-qualified, with a mortgage broker, that they were coming to see few properties.

At the end of January, they came for a week-end as planed and we saw 4 houses that Saturday and another 3 that Sunday.

A couple of days later, we discussed an offer on one of them, a 95% of asking price offer that was accepted.

The inspections went OK and they were in their loan paperworks for a couple of weeks when I got a phone call from them. They have been denied. I had to confirm with their mortgage broker and ask how pre-approved buyers can suddenly be denied. Here are some details I was not aware of:

She is an artist and create art that she sells online, on her website, Ebay and other sites. She just need a one car garage space or an extra bedroom for her job. She’s netting about $30K/year.

He’s a manager of a firm that is restructuring and he’s relocating from Richmond to Knoxville, to be the local branch’ manager. He’s netting about $60K/year.

Now  the best part. His income could not be taken as usable income from 2 lenders because that’s an income produced in another state. They ruled that if they are moving to another state, that income will be lost. He will need to provide 6 to 12 months of income in the new state. The wife is OK because they ruled that she can continue her job anywhere and a relocation will not change her income.

Therefore, only the wife’s income can be used and they will be able to buy a property at 1/3 of the original qualifying number.

On the phone with the mortgage broker, he was “shocked” while another one I called explained that it is part of all the new reforms that is happening in the mortgage industry.

Fortunately this time, I didn’t lose that sale since we finally found an owner financing willing to cooperate with agents.

But in the last 4-6 months, I have had buyers who have had a hard time dealing with financing…

Today is another day, another new lesson…Can’t wait to discover what it will be!

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Comments (0) Feb 17 2010