Financing

I am presently finishing financing for a condo.I found out after you are finished with all the paper work and hopefully get a good appraisal then any unit over 1 million will then go to a committee for review.I would never sign a contract without a mortgage contingency.Actually in mine I did not sign the contract until I got not only a written commitment by the bank but also a commitment to the rate.It is not easy.BTW you need 35% down payment and 25% in reserve to get the best rate

"Anyone have any insight on the current financing environment?"

mostly cloudy.

I dont think the lending situation has worsened because I dont think it can get much worse then where it is now. I said it many times before, when purchasing a new condo, you must make sure the building is approved for financing. I hear a lot of horror stories and "kabotched" mortgages even within my own bank. However, when I got down to the bottom of the story, it was usually the loan officer that either made a mistake or made unfulfilled promises. I always tell my loan officers, "never start a loan that you can not close." Just doesnt make sense and its just a waste of time for everyone. Many people may not like to hear it but it is always beneficial to tell someone that they can not get a loan rather than stringing them along. When you get the right borrower with the right loan officer buying the right property. It should be a very seamless process. But then again maybe there is no such thing.

michele - 35% down and 25% in reserves is particular for just one bank. We require 6 months of reserves for <1M loan and 12 months reserves for >1M loan amount.

sunny.hong@bankofamerica.com