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 FreebirdNYC
over 11 years ago
Posts: 337
Member since: Jun 2007
Seems like 1) you should be excited that they are willing to lend to non-approved building and 2) you should make sure you know why it's non-approved and that you're comfortable taking that risk. (A lot of people rely to some degree on the bank's stamp of approval to confirm that diligence isn't too bad - and here you don't have that). I wouldn't stress over "marginal difference" in pricing within WF. To make sure it's competitive thought, can't hurt to get a second opinion on pricing from another bank.
Ignored comment.
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Response by streetsmart
over 11 years ago
Posts: 883
Member since: Apr 2009
As a mortgage broker I had a relationship with Wells Fargo until they terminated their relationship with all mortgage brokers.
That said that just because a building is not on. Wells' s approved list does not mean it's not a Fannie Mae approved building. They may not have researched the building due to the fact that they did not do any loans in the building therefor didn't research it. In this case they do a spot approval, and if this works, they will consider the loan. That said under no circumstances would Wells consider financing in a building. Not Fannie Mae approved with no waiver.
Ellen Silverman
E.S. Funding Co.
Licensed Mortgage Broker since 1990
NMLS#60631
www.esfunding.instantlender.com Licensed Real Estate Broker since 1987
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Seems like 1) you should be excited that they are willing to lend to non-approved building and 2) you should make sure you know why it's non-approved and that you're comfortable taking that risk. (A lot of people rely to some degree on the bank's stamp of approval to confirm that diligence isn't too bad - and here you don't have that). I wouldn't stress over "marginal difference" in pricing within WF. To make sure it's competitive thought, can't hurt to get a second opinion on pricing from another bank.
As a mortgage broker I had a relationship with Wells Fargo until they terminated their relationship with all mortgage brokers.
That said that just because a building is not on. Wells' s approved list does not mean it's not a Fannie Mae approved building. They may not have researched the building due to the fact that they did not do any loans in the building therefor didn't research it. In this case they do a spot approval, and if this works, they will consider the loan. That said under no circumstances would Wells consider financing in a building. Not Fannie Mae approved with no waiver.
Ellen Silverman
E.S. Funding Co.
Licensed Mortgage Broker since 1990
NMLS#60631
www.esfunding.instantlender.com
Licensed Real Estate Broker since 1987