If I find a buyer mortgage at my bank?

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I wonder if my present mortgage would be more motivated to give my buyers a loan in another bank would be. If I sell my house, but the customer uses another bank My bank loses income from the ownership of the mortgage. Thus, the buyer would be easier to get a loan with my mortgage holder? Or am I just thinking too much?

  1. Reply
    May 2, 2011 at 7:21 am

    Depends. Does your bank hold its mortgages or sell them? Some banks sell the loans, and maintain the servicing. It’s worth checking out by calling your lender.

  2. Reply
    John M
    May 2, 2011 at 8:10 am

    It really only matters for banks that hold mortages in house. Everyone else does fannie mae conforming loans. Even for in-house loans, they
    won’t be concerned about losing one (your) mortgage enough to change their underwriting standards for your buyer. If they loosen their standards, they’ll get additional borrowers, so they make the loosening decision based on demand for the loans given their current terms.

    Also, for small increments of demand they can just drop rate of the loan or the points they charge, vs loosening the underwriting standards.

    When they loosen standards, they have to refigure their risk which is time consuming and uncertain, so they will more often tweak the rates to adjust to changes in demand.

  3. Reply
    Dr. Diagnonsense
    May 2, 2011 at 8:19 am

    You’re over-thinking this. Which bank holds the current mortgage has no bearing on whether or not the buyer can qualify for a loan. Let the buyer find their own financing – which they should do before they even see your home.

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