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Ok. Another question. They want me to write a letter to swear that this house will be my primary residence and will not be rented out. It will be my primary residence. But if 5 yr from now, I want to rent it out, can I ?
Ours was a smaller local bank where we knew someone, although I'm not sure that had much to do with the excellent service. I got the impression that they weren't terribly busy all the time so they were happy to help. I see that we are in different states, but I would say definitely look beyond the big name banks. It was such a pleasant, personal experience as first-time buyers.
Ok. Another question. They want me to write a letter to swear that this house will be my primary residence and will not be rented out. It will be my primary residence. But if 5 yr from now, I want to rent it out, can I ?
If this is a standard conventional loan, you must move in 60 days after closing and intend to live there one year. You can rent it out the day after your first year. If you must move out of the area, urgently, there's room to interpret you don't have to keep an empty house and can rent it. (And if you have several investment properties, be very careful about not playing by the rules).
If this is a standard conventional loan, you must move in 60 days after closing and intend to live there one year. You can rent it out the day after your first year. If you must move out of the area, urgently, there's room to interpret you don't have to keep an empty house and can rent it. (And if you have several investment properties, be very careful about not playing by the rules).
Though this may be technically true, I can guarantee that as long as the bank is getting their monthly mortgage check, they won't give a flying fawk who is living there.
Well, we closed on our house today and I can't believe how easy the process was. I was afraid from all the horror stories I've read, but my bank didn't even ask for more documentation beyond what I first gave them. The inspection went well with no need to have the sellers fix anything. The house appraised for more than we paid, and our realtor and loan officer were great to work with.
We even love the colors of the walls and the artwork that was left. There's nothing left to do now but move in!
Well, we closed on our house today and I can't believe how easy the process was. I was afraid from all the horror stories I've read, but my bank didn't even ask for more documentation beyond what I first gave them. The inspection went well with no need to have the sellers fix anything. The house appraised for more than we paid, and our realtor and loan officer were great to work with.
We even love the colors of the walls and the artwork that was left. There's nothing left to do now but move in!
With your good luck, I'd run down a buy a lottery ticket.
Though this may be technically true, I can guarantee that as long as the bank is getting their monthly mortgage check, they won't give a flying fawk who is living there.
While it's not only technically true, it's the fastest rising form of mortgage fraud today. Pop into your Google browser "occupancy fraud #1 mortgage crime, "you'll pull up pertinent stories. It's not the bank that's looking, either. Even better, it's this brand new shiny bureau that reports to no one and is law unto themselves. This has absolutely nothing to do with missed payments and everything to do with someone stealing (yes, it's theft) money from a federally insured institution. Mortgage bankers and lenders have been giving the CFPB the evil eye, but watch how those banks get all cozy when they land higher interest rates onbtheir mortgages. If you are caught, it's pay up (to market rate) and pay down to at lease to 80%. The #1 way borrowers are caught is really rather amusing and not what you think. Now, are the odds with you, that you will get away with it? Most definitely. But those days are becoming rare with our new electronic age making spotting liars easier every day.
An update: Closed on my house on May 15th with zero problems. No last minute conditions or information requests or anything. Biggest hassle in the whole process was the initial gathering of bank statements, then my long wait for the appraisal (turns out there was a lack of nearby comps that lengthened the wait).
Explanation:
In the past, when applying for a mortgage, providing a bank statement was the end of the story. Under the Patriot Act though, there can be much more to it. The act requires lenders to verify the source of any and all large deposits on each financial statement. Most lenders interpret this as meaning any deposit greater than $500. Whether it was a wedding or birthday gift, a rent check, repayment of a loan or any other type of deposit, lenders are now required to ask the homeowner to provide a brief explanation of each deposit, as well as verification of the source. Usually, this means providing a copy of the cancelled check for each deposit.
The most common response from a homeowner to this request is: “That’s none of their business, and why does it have an impact on my loan?” In reality, the bank itself most likely doesn’t care where or how a homeowner acquired the money. As long as they have sufficient funds to qualify, the bank would be satisfied and willing to lend. Under the Patriot Act though that’s no longer enough. Since banks are federally regulated and, more specifically, under the Treasury Department’s supervision, they are required to verify that all funds used for these transactions are not sourced by terrorist-backed funds. The only way to accomplish this is to verify that the funds came from an alternate and legitimate source.
You're not alone! Shared misery...
Is it any easier to go thru a mortgage lender than a bank. The whole story and the OP's story sounds like a nightmare.
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