See our required documentation checklist for more info. Proof of Income – You will be asked to provide third party proof that you can repay the note.The second form can be a consular ID card from another country, social security or ITIN card. 2 Forms of Identification: 1 must be a government issued unexpired identification – this is needed for notary purposes for the closing, e.g.Credit Authorization – we will do a soft credit check on all buyers/borrowers/guarantors to verify their monthly liabilities.Loan Application – A loan application will be required for all buyers/borrowers/guarantors on the note.The RMLO is paid an origination or processing fee at the closing at the agreed upon amount by the party stipulated in the sales contract. The RMLO has a fiduciary obligation to the borrower and helps with all questions regarding the financing of the property including pre-approving the borrower before a contract is signed. Miyaki Financial Inc., acts as a liaison between seller and buyer and collects necessary documentation acceptable to the seller to obtain their loan approval. Many prefer to have their loan processed and originated by a Residential Mortgage Loan Originator (here after RMLO) to ensure full compliance with the SAFE Act. In example, a seller that arranges the sale of 3 non-homestead property to a non-family member (per year) must obtain a residential loan originator license. However, due to changes to state and federal regulations now seller finance lenders must adhere to the same regulations as banks, making the owner-financing process more difficult than before. Banks have strict underwriting guidelines but in an owner finance arrangement you can buy a property with less than perfect credit and provide alternatives sources of income. The same happens when you borrow from a seller/lender. When you borrow from a bank, you need to follow certain legal formalities. Title insurance in many cases is optional – depending on the seller/lender, you may be able to opt out and save hundreds in additional closing costs.Taxes and insurance are escrowed – no need to save up money for these expenses every year. Improvements Financed: Seller may be able to finance the well, septic, or other improvements on lots/ranches.Low down payment options – keep more money in your bank for reserves.Fixed rates – your rate will not increase or decrease with the prime rate or index rate changes.
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