Had a deal all negotiated with the lender and was just waiting on the approval letter. Then I get a call from the lender telling me that they just noticed that the loan has MI and that they will have to get approval from the Mortgage Ins. co. They also said that what the bank considers an okay offer, the Mort. ins may not. In other words, they may want more money from the buyer on this deal.
I was told that the lender buys a certain % policy on each MI. This one was bought at around 25%. Okay, we have a $64K loan balance and 25% of that is $16K. We have an offer of $26,500. Would someone please help me to better understand what the MI company is looking at when they are reviewing the offers. It seems to me this one is a good deal since the offer is coming in higher than the polity percent.
Sheila Vardakis