You can still get a mortgage without a time-of-sale report, but the specifics depend on the type of mortgage, the lender’s requirements, and the context of the sale.
The “time-of-sale report” is not a universally mandated document for obtaining a mortgage; rather, mortgage approval generally requires documentation related to creditworthiness, income, property appraisal, and title. The time-of-sale report, sometimes required in certain localities or for specific property types (for example, a real estate transfer disclosure or inspection report), is not directly tied to the mortgage underwriting process itself.
For example, FHA mortgage guidelines focus on borrower credit status, history of payments on previous loans, and other criteria rather than on a time-of-sale report. Even after a short sale or transfer, FHA allows for exceptions if the borrower demonstrates good credit and mitigating circumstances, indicating flexibility in documentation requirements beyond just a standard report at sale.
In terms of regulatory reporting, mortgage lenders must comply with state and federal reporting requirements, but these focus on loan activity reporting, borrower information, and loan servicing, not specifically on time-of-sale reports.
Therefore:
- If you are buying a home and applying for a mortgage, the lender will primarily require standard documentation such as credit reports, income verification, and appraisal—not necessarily a time-of-sale report.
- Some states or localities may require a time-of-sale inspection or disclosure report for transferring ownership, but these are separate from mortgage approval.
- If you are dealing with special loan programs like FHA loans, they have specific underwriting requirements but do not explicitly mandate a time-of-sale report.
In sum, you can obtain a mortgage without the time-of-sale report, but be sure to meet your lender’s documentation and underwriting requirements and check any local real estate transfer obligations separately.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-still-get-a-mortgage-without-the-time-of-sale-report/
