The Mortgage Note Purchase         Quote Request

What Is Required For a Mortgage Note Purchase Request?

The next step in the selling of your owner-financed mortage promissory note is the request of the quote.  After finding a mortgage note broker or note funding source (or multiple brokers or funding sources if you decide to shop around for multiple offers), there are some pieces of information that these businesses will most likely require you to provide so that they can properly evaluate and generate an amount for your mortgage note quote.

Requirement List

The following is some of the more common information that will probably be required of you.

1. The date of the sale of the property.

2. The selling price of the property.

3. The cash down payment for the property sale.

Note:  The higher the down payment, the lesser the risk for the funding source (the note investor) which therefore could lead to a potentially higher mortgage note quote.

4. The amount of the property selling price that had been financed through the creation of an owner-financed note.

Note:  In the case of a first-position note, this number plus the cash down payment should equal the original selling price of the property. If it does not, your quote source will more than likely contact you to clarify.

5.The terms of the mortgage note:

a) Years of financing.
b) Interest rate.

6. Date of the first payment.

Note: From this information, the quote source can figure out the amount of note seasoning (the number of payments already paid on the note).  Some funding sources might have a minimum requirement for the amount of seasoning a mortgage should have before a quote will be considered.

7. Monthly payment due on the mortgage note.

8. Current note balance.

9. Current appraised value of the property.

10.Estimated credit worthiness of the individual paying the mortgage note.

11.Description and location of the property including the property type.

Once the above information plus any other information that may be required by your specific quote source is submitted, you should be able to expect a decision regarding whether your mortgage promissory note is quotable and for what amount within a couple of days.


 

 


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