Buildings that are NOT on a bank's "approved" list
Started by CoyWolf
over 11 years ago
Posts: 124
Member since: Jul 2007
Discussion about
Hi everyone, Certain buildings are on a bank's "approved list"; the banks consider this building financially safe. The building has enough reserves; a large percentage of the units are NOT owner occupied; the sponsor does NOT own too high a percentage of the units, etc. But a building that's NOT on the bank's "approved list": banks are reluctant to offer mortgages to an applicant who's buying into... [more]
Hi everyone,
Certain buildings are on a bank's "approved list"; the banks consider this building financially safe. The building has enough reserves; a large percentage of the units are NOT owner occupied; the sponsor does NOT own too high a percentage of the units, etc.
But a building that's NOT on the bank's "approved list": banks are reluctant to offer mortgages to an applicant who's buying into a "non-approved" building, generally speaking.
Nonetheless, a bank will loan to an applicant with very good financials, even though he/she is buying into a "non-approved" building.
My question: If one buys into a "non-approved" building, will the mortgage rate be HIGHER than the rate if one buys into an "approved" building? If so, what's the difference in the rate, generally speaking?
My banker from WF just told me that there is no difference, and I'm happy. But I've heard that there could be a marginal difference. So I'm confused.
Please enlighten.
CoyWolf
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Response by gothamsboro
over 11 years ago
Posts: 536
Member since: Sep 2013
Why don't you ask your mortgage broker?
Ignored comment.
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Response by KeithB
over 11 years ago
Posts: 976
Member since: Aug 2009
Many times a building is not on a banks approved list simply because of outdated documentation, usually because the bank has not made a loan there is say 3 years. I prefer to shop around and find a bank that does have the subject building approved. In some cases the bank can easily bring the building back on board, in others it can create a lot of additional headaches as the underwriter asks for what seems like a never ending amount of documents and information. Just went through this, Chase did not have a particular "approved:, Citi, Wells and BofA did. Before Chase could get the building back on line, the deal went South. There is also NOTHING more important than a highly competent mortgage banker, they are not all the same.
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Why don't you ask your mortgage broker?
Many times a building is not on a banks approved list simply because of outdated documentation, usually because the bank has not made a loan there is say 3 years. I prefer to shop around and find a bank that does have the subject building approved. In some cases the bank can easily bring the building back on board, in others it can create a lot of additional headaches as the underwriter asks for what seems like a never ending amount of documents and information. Just went through this, Chase did not have a particular "approved:, Citi, Wells and BofA did. Before Chase could get the building back on line, the deal went South. There is also NOTHING more important than a highly competent mortgage banker, they are not all the same.
Keith Burkhardt
The Burkhardt Group