So, I know what a landman generally does, but can one provide a certification on the amount of oil a well would produce and give a good estimate as to the money it would pay out to a landowner? 2 yrs time frame or so. Why do I ask?, you ask. Well, I’m trying to get ahead of the game of purchasing a new construction home. A realtor I’m working with mentioned finding out about using a landman to research and certify income from an oil well so that I could provide that to the mortgage company to qualify me for a new home loan. Yep, right now I don’t earn enough for the home I want, but if this landman certification thing is real I would definitely be interested in using his services to be ready for when the right property lot becomes avail so that I can jump on it. So, if you know please educate me on this. I would appreciate all the help. Thanks
Nobody can give you a certification of what a well can, might or will make. Especially if it isn’t even drilled yet.
You will find great difficulties relying upon mineral income to qualify for a loan. Fanny May has the following stupid requirement:
> Verification of Income From Royalty Payments > Obtain copies of the *> * > * royalty contract, agreement, or statement confirming amount, frequency, and duration of the income; and > * borrower’s most recent signed federal income tax return, including the related IRS Form 1040, Schedule E. *> * Confirm that the borrower has received royalty payments for at least 12 months and that the payments will continue for a minimum of three years after the date of the mortgage application.
Obviously, no oil company is going to issue any such certification that income will continue and in what amount. In fact, it might be better to omit this source of income from the loan application to avoid headaches.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
This topic was automatically closed after 90 days. New replies are no longer allowed.