Contract Red Flags Part 1 of 6

Today’s lending environment emphasizes increasing scrutiny on all aspects of the application.  The purchase agreement will be reviewed along with the buyer’s income and asset documentation. Here are some tips for ensuring your contract sail through underwriting!

RED FLAG:  Writing personal property in the contract.

BEST PRACTICE:  Write any personal property on a separate bill of sale.       Unless it is attached to the home or built-in the personal property should always be on a bill of sale since it is not considered as over all value to the home.  FHA loans are very particular about this and other types of loans as well.

look for more RED FLAGS tomorrow.

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