Posted by blueangel on September 17, 2003 at 03:25:24:
Thanks ya all for the great advice. Turns out my fico score enhanced to 720 and I got pre-approved by a lender with a full-doc loan of $400K loan with only 1/2 point at 6.4%. I used a very savvy mortgage broker by following advice on CREonline articles and many of Mr. Garcia’s advice on negotiating with banks. I have all doc but my main concern was time, it took a lot shorter than I thought. I think lenders are only human and this is truly a people business, not as cut and dry as I expected. It also had a lot to do with the 35% equity on the house.
Now I will go back to owner to offer choice between all cash with lower price and seller carry.
Re: Owner will carry but ask for income credit doc - Posted by dknj23
Posted by dknj23 on September 14, 2003 at 09:32:56:
Hi,
What he’s asking is not unusual. If you think about it, if you were to hold a mortgage in your name you would want to make sure that the person buying from you would be able to pay you, right?
He’s acting like a lender in the sense that he/ she needs to know that you have the means to pay in full.
Re: Owner will carry but ask for income credit doc - Posted by BlueAngel
Posted by BlueAngel on September 14, 2003 at 13:40:42:
Then that would be no different with getting full-doc financing from a bank. But isn’t the whole point of doing owner financing is to get around the hassle?
Re: Owner will carry but ask for income credit doc - Posted by Frank Chin
Posted by Frank Chin on September 15, 2003 at 07:35:47:
Blue Angel:
You’re right, it’s been said that owner financing is sutiable for folks with bad credit and so on. What is not emphasized is it is because owners do not ask for credit information because they don’t know any better. Not all owners are so stupid.
So the answer is just to move on.
The same is said of renters finding apartments. Many are surprised I check credit as they thought only large apartment complexes do it. That’s partly true, because many of my parents contemporaries has no idea how to check credit. I now do it for my parents and in-law.
This is why many folks avoid landlording because of problems with tenants. The reason is problem tenants find landlords who don’t check credit, the way problem buyers find owners that don’t check credit.
Re: Owner will carry but ask for income credit doc - Posted by BlueAngel
Posted by BlueAngel on September 15, 2003 at 17:15:47:
Hi,
Anyone else has constructive advice on getting around this? It’s a very good pre-foreclosure deal with 35% with clear lien. My credit score is 660, I don’t know if that’s too low.