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I am looking at a condo that has its Fannie Mae approval expiration date in the beginning of Nov?
I am about to start the process of getting my mortgage (finalizing contract) and am worried that if my closing is just after the approval date, will the expiration date affect me? The mortgage companies have said that since I am preapproved and the building is preapproved the mortgage should take 30-45 days which makes closing right around the expiration date?
Can I work with 2 banks on mortgages and then just go with the one that closes the fastest?
Thanks for your advice!
We are seeing this very often with New York area Condos. The Managing Agents are not updating required documents with FannieMae annually: UCC Insurance policies, financial statements, etc.
The expiration date should be a matter of serious concern. If the date passes and the documents requested to extend the approval are not submitted to FannieMae then you will not close. The Managing Agent is responsible to update documents annually with FannieMae to maintain the approval.
Word of caution: even if the M/A does submit the documents on time, the approval may become a denial based on the current financial standing of the Condo. If there is a higher investor concentration than in previous years then FannieMae might pull the plug on the approval. If there is a high percentage of owners delinquent on their HOA payments, this could result in a denial (I had this happen recently on a Condo where 30% of owners were delinquent to the tune of a dollar amount EQUALLING cash reserves!). There are other reasons, too, why FannieMae can cancel an approval once the updated docs are received.
Your Loan Officer should be guiding you on this.
As for working with 2 banks? You cannot do that unless you are prepared to lie on one or both loan applications and commit mortgage fraud in doing so. Your Lenders will ask for an "Inquiry Letter" to explain any inquiries on your credit report. You are required to explain any inquiries on your credit report.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
Not in contract yet so talking to major bank & work credit union. Trying to decide which one to go with. They are both competitive with rates and are both promising 30ish day close. There should be 40ish days till expiration date.
Credit union seems to work with Freddie. Major bank Fannie. So think major bank may be safer bet to ensure close before expiration?
Due to competition have no contingencies in contract so am a bit worried about going through with deal although I am preappoved, am putting in over 30% down, have over 770 credit score, have additional financial assets & taking NYC conventional jumbo loan (under 625)?
Building financials seem good (insurance, reserves, delinquent maintenance folks less than .005%) but high amount of investors in building/sponsor owns 11% of units although 1.7% are currently for sale). Has been that way for a while. Condo board pres says it will renew (he's in the process of refinancing).
Would appreciate advice (eg should I be worried? Fannie using big bank best bet over credit union?)