Wet Loan
"Splish splash, I was getting a mortgage, all about a Saturday night..."
A wet loan is a mortgage that helps the borrower buy some property quickly, allowing the buyer to complete all that paperwork and other processes after the deed of buying is done.
Since all that paperwork is there for a reason (you want to make sure you know what you’re getting into with the probably-most-expensive-purchase of your life), some states don’t allow wet loans at all.
If you do get a wet loan, you get your hands on the money as soon as you finish the loan application. The things that make sure you don’t get screwed over, like a property survey and title search, are done after the property is already bought.
Why is it called a wet loan, anyway? Well, it all happens so fast, the ink is still wet when the paperwork is submitted to the lawyers.
Splish, splash...
Related or Semi-related Video
Finance: What is a Mortgage?345 Views
Finance allah shmoop shmoop What is a mortgage Well people
a mortgage is just dead it's alone but one with
special tax treatment For most people simply put Any interest
you pay on a mortgage to buy a home is
tax deductible Morty morton's inputs down a hundred thousand bucks
to buy a home that costs four hundred big ones
his mortgages three hundred grand at five percent interest per
year So that's fifteen thousand dollars a year he pays
to rent the money from the bank which he uses
to buy his dream home with the loop de loop
waterslide Morty earns one hundred grand a year and pays
tax on his last fifteen thousand of earnings soas faras
The irs is concerned since morty can deduct his fifteen
thousand dollars in interest against his earnings he does not
in fact earn taxable wages of one hundred grand annually
Instead he earns taxable wages of eighty five thousand dollars
a year Essentially with government is doing is sharing in
some of the cost of renting the money Taub i'm
ortiz home well why would the u s government be
so charitable Well because home ownership has been integral part
of the american dream since the u s of a
i po'ed in seventeen seventy six easy access to mortgages
and then home buying can be a hugely beneficial asset
In the vast majority of cases homes create family stability
a store of wealth and tax dollars for local schools
in the form of real estate taxes So don't feel
bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello
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