Loan Amount Range

Posted By: 3up3down

Loan Amount Range - 12/21/11 07:36 PM

We have a couple that applied for a loan to purchase a home and make improvements on it. However, they do not know how much the selling price of the home will be. So the loan amount they applied for was $60,000-$75,000. We are denying the loan. What amount do I report on the LAR?
Posted By: raitchjay

Re: Loan Amount Range - 12/21/11 07:44 PM

If you never did find the selling price, i'd report the lower amount ($60k), my reasoning being: what they were applying for was AT LEAST $60k and you wouldn't approve them even at that amount. Just my opinion.
Posted By: Adam Witmer

Re: Loan Amount Range - 12/22/11 03:02 PM

Originally Posted By: raitchjay
If you never did find the selling price, i'd report the lower amount ($60k), my reasoning being: what they were applying for was AT LEAST $60k and you wouldn't approve them even at that amount. Just my opinion.


That reasoning seems appropriate to me. Good thought process RJ.