Monday, July 27, 2015

Buyer's Agent - 3 Important Steps

I have been working on a purchase transaction where the seller has a leased solar system with Solar City. The buyer's agent on the transaction is doing a great job completing the 3 important steps:
  1. Make sure you tell your mortgage lender immediately if there are leased solar panels on a property your buyers are interested in. You'll need to find out what the seller's monthly lease payments are to the solar company. The lender will have to add the monthly lease payment to the buyer's liabilities. This potentially could put their debt ratios above the threshold, so be sure to let your lender know.
  2. Make sure to put language in the purchase contract that protects your buyers. Make the home purchase contingent upon the successful lease transfer of the solar panel lease to the buyers.
  3. Make sure your clients (buyers) apply with the solar panel company as soon as they can to get the lease transfer approved and the paperwork complete. You'll need to give that to your lender right away so everything is ready for a successful close.

Monday, July 20, 2015

Borrower's Credit Report for Medical Collections

I did some research on medical collections the other day. As a lender it is the most common collection that I see on a borrower's credit report. Did you know that more than 40% of Americans have medical collections?

Finally, there's some good news for our clients with medical collections on their credit report. The change could mean borrower credit scores could go up by as much as 25 points!

If you have potential buyers who have a medical collection accounts on their report, all three credit bureaus are no longer placing so much weight on those types of accounts. The change was announced a couple of months ago, and means a higher overall score and a better chance for lenders like me to get your buyers qualified for the home they want. Finally some common sense.

The reduction of the credit score penalty for medical debt should help bolster real estate sales. We'll take any good news we can get :-)