Thanks for giving me more details about your situation. I appreciate it. Concerning the Prop 19 tax basis and its effect on qualifying for a loan, it is indeed difficult for lenders who only calculate property taxes using the standard method, given that you prefer working with local lenders.
Things to consider:
Advantages of Proposition 19:
It enables homeowners, especially those who are elderly and over fifty-five years old, to transfer their previous homes’ tax assessments to new properties. Thus, it saves a lot of money in terms of property taxes. However, most lending institutions estimate future financial obligations at one point two five percent (1.25%) regardless of whether there exists any conservative guesswork, like what just happened to you.
Lender’s flexibility:
Some may be willing to qualify borrowers based on lower anticipated property taxes under Prop 19, though this rarely happens. This is because lenders normally use current rates, which apply universally, without considering individual differences among applicants to not underestimate their clients’ financial capability in the coming days.
Other Solutions:
If they are already your trusted partner and you want convenience, go ahead. However, remember that things have been done, and when everything is adjusted according to Prop 19 rules, your actuals will likely turn out lower than expected. The deal now would ensure it will close while benefiting from reduced levies later.
Out-of-state lenders:
Alternatively, if you were to consider another lender outside their region who might have had prior experience dealing with similar cases or could be more open-minded regarding qualification criteria based upon proposition number 19, however, as mentioned earlier, starting afresh by filling out applications, forms, etc., with different people takes time and only sometimes yields the desired results. Hence, one may try many options but return where they started.
With everything being as it is and given that you would rather stick around with a local lender than look elsewhere. This is to keep an open mind even if they make no allowances due to adjustments arising from Proposition 19. I am in charge of the largest branch of NEXA Mortgage Corporate NMLS 2315275, the largest mortgage brokerage in the nation, licensed in 48 states (M.A. and N.Y. pending), including Washington, DC, Puerto Rico, and the U.S. Virgin Islands. Over 80% of our borrowers could not qualify at other mortgage companies. Gustan Cho Associates (Oakbrook Terrace, Illinois NMLS 2315275) is a DBA of NEXA Mortgage. Most of my support, operations, and licensed personnel are seasoned professionals who have been with me for over a decade. We only issue pre-approvals if we can close the loan on time. I am one of the few national managing mortgage branch and ops managers who originate loans. We have many different options such as a TBD underwriting approval, a full mortgage conditional loan approval subject to the property. We offer forgivable down payment assistance programs, no-doc loans, bank statement loans, and other alternative mortgage programs. Let’s chat on the phone, and if I can offer any advice that can benefit you, I want you to choose any loan officer and mortgage lender you feel comfortable with. There were many instances where I have helped clients who had other loan officers coach their loan officer to the finish line. The housing market is tough right now to sell, considering what you pay for the mortgage. Moving with certainty about loan conditions and general financial status would be wise.
If you ever decide otherwise or need more help, feel free to let me know. I hope this has been helpful. Good luck with your decision-making process. Have a nice weekend!