Thursday, May 12, 2011

Property Marketability

There are two distinct things that must be approved before a lender will give a borrower any money to buy a house: the borrower and the property.

Getting the borrower approved is easy. Collect the right information, run it through the underwriting software, and send everything to underwriting to make sure the borrower's information was entered into the software correctly.

Getting a property approved is a bit more complicated. First, the appraisal must show that the property is worth what the buyer is paying for it. The appraisal must also show that the property is marketable. The lender cares about marketability because they want some kind of assurance that they will be able to sell the property quickly if the borrower goes into foreclosure.

Lenders want a property to appeal to the largest possible pool of potential buyers. If a lot of people want to buy a house, it is considered "marketable".

Here's a good example of how a house might not be marketable. A dome house might be cool to look at, and it might be worth a lot of money, but not too many people want to live in one. A dome house is not very marketable, and it is extremely hard to get a loan for one.

The same goes for houses with other unusual designs, zoning restrictions, or those without adequate utilities or year-round access.

Marketability is as important as value!

Did you know that Debbie and Chris Thomas, The Mortgage Experts, have each been awarded the prestigious 2011 FIVE STAR Mortgage Professional designation by 5280 magazine?  That makes us a TEN STAR team!  50,000 recent home buyers ranked both of us in the top 5% for overall customer satisfaction and mortgage knowledge.  Want to be satisfied when you get a mortgage?  Call The Mortgage Experts.

Check out our web site:

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

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