“Don’t Panic” by Cold Play.

Remember how I was singing the “Getting a Mortgage Blues“?  I am in the process of attempting to purchase another duplex/investment property.  Well, today I got to temporarily cross-over to the “panic mode”.  After receiving an upfront pre-approval from my mortgage broker, finding an appropriate investment, finally making an offer, competing against other multiple offers, having a property inspection and the ensuing negotiations, paying for an appraisal and enduring the first phases of getting a loan approved, I found out that the bank that happily (and successfully) lended on my last investment property had changed their underwriting guidelines to suddenly “disallow” any consideration of rental income.  Thus, even properties that were currently cash-flowing (money considered as income by the IRS), were not considered as income by this particular lender.  So, any income garnered from my existing investment properties didn’t count…only the debt.  It doesn’t take a genius to do that math.  That put my debt ratios “over the edge”.  I return from my early morning work-out to a voice message from my long-time trusted mortgage broker that he believes he has another lending source.  Because I’ve worked with him so many times, I decide to “breathe deep” and trust in the process.  I found out they had quickly re-packaged the loan and re-submitted it to another lender that does not follow this above-mentioned particular set of guidelines.  The good news is they can use our existing (and already paid for) appraisal and we should clear underwriting within about 3 business days.  WHEW!!!!!!!!!!!!!!  Just in case you didn’t already see the “silver lining” in this story:  our closing costs will be slightly less and because the interest rates had dropped overnight, we will enjoy a slightly lesser payment (amortized over 30 years).  Life is good!

About the Author | Janeese Jackson

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My job is service...service to you and your real estate transactions! How can you benefit from my 20 years of experience and expertise? What can I offer to make the process more productive? * Current information on available housing...comparative and competitive market pricing and analysis * Daily involvement in the local real estate marketplace * Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business * Extensive network of professional resources to make the process as smooth as possible My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!