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Do you know? ...
1-30-10 The new contracts recently placed in use by the MLS require that a Buyer announce their loan program at the time that they write their offer. And there has been a recent legal opinion that suggests that a Buyer who changes their type of loan after the contract has been written, will have been deemed to have waived there financing contingency. This is REAL SERIOUS folks. There is still the normal "5 days after mutual acceptance" that you have to make loan application, so you have a bit of time to shop for your lender, but NOT your loan program.
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... how frustrating it is to see our Buyers lose a home that they would really like to own to another Agent's Buyer simply because our Buyer could not produce a "Loan Pre-approval Letter" at the time that they submitted their offer. So please, PLEASE do not start looking at homes before you have this letter in your possession as it might take several weeks to obtain one of these letters. Banks will NOT even consider an offer on their REPO properties unless the offer is submitted with a pre-approval letter and other Sellers will be very skeptical of you as a potential buyer if you cannot immediately produce this letter.
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The Housing and Economic Recovery Act put new regulations into effect on July 30, 2009. "HERA" amends the Truth in Lending Act. It has a number of provisions including the Mortgage Disclosure Improvement Act which changes the requirements surrounding early and final disclosures to homebuyers and impacts when fees may be charged.
- CLOSING CANNOT BE LESS than 7 business days after the homebuyer is issued their initial mortgage disclosures from the lender.
- MOST LENDERS CONSIDER SATURDAY a "business day" for purposes of disclosures.
- THE HOMEBUYER MUST RECEIVE A COPY of their appraisal at least three business days prior to the mortgage closing.
- NO UPFRONT FEES (other than credit report, which can be collected even on pre-approvals) until borrower receives disclosures UNLESS application is taken face-to-face (and receives disclosures at that time).
- IF APPLICATION IS TAKEN OVER THE PHONE, and initial disclosures are sent overnight air, they are considered "received" the next business day - Other fees (Appraisal, etc.) can then be collected the next business day.
- IF THE ANNUAL PERCENTAGE RATE (APR) increases more than .125% from the initial disclosure, it must be revised and reissued at least 3 business days before closing. If mailed via US Postal Service, it is considered "received" 3 business days after mailing.
------------------------------------------------------------------------------The FBI reports it is investigating more than 2,100 mortgage fraud cases, up from 1,600 in 2008 and 1,200 in 2007. They are urging consumers to either know your lender personally or get a referral to one.
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 IF YOU HAVE A RELATIVE OR FRIEND WHO IS A REALTOR IN ANOTHER AREA OR STATE YOU COULD GREATLY ASSIST THEM IN THEIR CAREER BY MENTIONING IT TO JACK OR NANCY BEFORE YOU BUY FROM US.Click HERE to see how you could help them.
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WE OFFER FREE HOME BUYER/SELLER SEMINARS
Would you like a "brush up" on current trends in buying or selling a home? Or are you a first time buyer or seller who would like to understand the entire process before "jumping in"? You are welcome to sign up for our free, no obligation, seminars. They are conducted every other week at 7pm on Monday and Wednesday evenings. Call us at 425-422-2267. Page us at or simply email us using this link: j.swaisgood@verizon.net
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