I know that borrowers sometimes feel like their privacy is being invaded, but if you deal in a cash only business and have no paper trail to show where the money came from, (then trust me on this)…the underwriter will kick you to the curb.
Nothing against the law firms that have saddled up to ride as title companies, but giving the buyer the latitude to select their own title company saves them from being pulled into the vortex of the boiler room closing mentality. There’s enough going on in a Fannie Mae owned purchase; if you don’t have to interject any overworked and overwrought resources into the mix, you’ll be way ahead on your trip to the closing table.
According to Fannie Mae’s Loan Quality Initiative, a buyer can be asked to provide documents such as moving company contracts, utility bills, and hazard insurance policies to confirm the primary residence.
Some people love to project that they know everything and that they are the smartest in the class. Even the media perpetuated the falsehood that the extension to the tax credit was passed. What those talking heads did not specify was that only the amendment to a bill completely unrelated to the tax credit was passed, not the extension itself.
Call it dirty pool, but if discovered these “extras” will have to be appraised by an estate appraiser. Then the mortgage loan amount will potentially be reduced to compensate for the value of the goods. On top of that, since such an appraisal is a fee-based service, it will hit the borrower’s pocket as just another cost of the transaction.