Hello again—So when you are with your Realtor while he/she is drafting your Purchase Contract. Here’s a few more basics for you to remember. —It may seem like a trivial thing to talk about, but not all agents fill out the purchase contract correctly.— It is important that it is filled out properly and correctly not only for your protection as the buyer, but for the Lender as well who will ultimately give it to the Underwriter.— The attorneys at C.A.R. and the forms people put protection things in the contract for you the buyer. —Make sure that your loan amount is in the contract.— I generally talk to the buyers loan officer (whoever that may be) prior to or during the contract writing process, to ask the important necessary protection questions for the buyer. (The Max interest rate that should be put in the contract, or if you are doing an FHA Loan how much must the seller pay, the buyer cannot and other questions too)— So ask your Realtor to show you where in the contract is the loan amount if you don’t see this in the contract, or if it is not brought up in discussion (haha—that is if you are getting a loan to do the purchase it needs to be in the contract—oh duh)—Next, there is a place to put in a MAXIMUM interest rate you are willing to pay (Typically that amount is given to the Realtor by the loan officer who knows the history of credit of the buyer and other details which will dictate the interest rate). It is a protection clause for you, the buyer because— If the interest rates rise and it goes above that percentage number in the contract, it is your right to back out and retain your deposit (ask your Realtor about this). — However if it is Not in the contract and you cancel the purchase (depending on certain terms) You may have just given the seller your deposit when you didn’t necessarily have to.— That’s what I mean by a buyers protection clause.— Next, the interest rate will be written in the contract(hopefully) under the FIXED loan part. — Probably a 30 year Fixed Rate. You probably DO NOT WANT TO DO AN ARM (ADJUSTABLE RATE LOAN) EVER.—the loan term (30 years) should be marked as well as the 30 year Amortized (equal monthly payments over 30 years) is what that means (unless you are doing a Fixed 15 or 20 year loan and then it is set up thata way IN the contract.—That’s it for today—when in doubt ask your Realtor—That’s what this Realtor does—I Help People.—Buy Buy for Now.
As a California Realtor I use C.A.R. (that’s California Association of Realtor) Contracts, by the way. In the Residential Purchase Contract and the Land Contract are cute little boxes that I usually put an X in, to ask the seller (which is normal in our area) to pay for a well inspection & water quality test, A septic inspection & pumpout (because you can’t inspect or see the integrity of the tank if it’s all full of good meals gone by) and a box to check, to ask for a pest control inspection (termites, fungus, dryrot & beetles–not usually rodents).
So when you are with your Realtor and or agent make sure you dicuss these items if the home or land has them.— If a septic system needs replacing–it could be $6500 or more. —If a well has problems or needs repair it could cost thousands as well–haha—well—get it? —Anyway, if the house/manufacturted/mobilehome or whatever has termites etc it could cost thousands too.—Now why would you not ask the seller to pay for that inspection when you are purchasing that property? The reason I am putting this here for you to read is because they do not teach that in real estate 101 classes to get your license. Granted it is more work for the Realtor/agent but a little protection goes a long way.—The attorneys at CAR put those cute little boxes in the contract, so your Realtor or agent can X (Mark) them (add them if you will) to help protect you, the buyer by asking for these tests. —Just a little protection tip for you if you are city kids like I was and don’t know about well, septic or termite inspections. — Have fun property shopping.
All the way thru the sale I must say I was very impressed with the way Wachovia had One person deal with me as the listing agent/Realtor. From start to finish I couldn’t have been more fortunate to have dealt with a Professional. The offer I received from the other good Realtor I submitted with the hardship letter and all the other documents in one email. They had the appraisal and written approval quickly (14 days). Now they have recovered fair market value $$$ on the money they had loaned out because the sale is now complete.
—I am dealing with another good Realtor in a deal, this time I represent the buyer. This bank is SLOW to respond and it has been since Nov 19th since I submitted the offer (Two Months). Now, they are changing negotiators and I am not sure they actually know exactly what they are doing. My buyer is hanging in there when she could be looking for another home. That is part of what is frustrating about buying a short sale home. It takes commitment to make a fair market value offer and be willing to hang in there because some lenders are SLOW. The sellers Realtor is Calling the Loss Mitigation Dept to make sure they talk to the Foreclosure dept to talk to the Beneficiary to stop the sale date while we are waiting on them to get their act together.
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I would rather deal with Wachovia–it is my recent experience that They know how to successfully close a fair market value offer on a short sale in a timely manner.
Gazunteit!!! With the real estate industry poised in what could be a good recovery there appears to be a Dark Cloud that is Slowing that recovery. HVCC.
We have appraisals coming in our local area thru HVCC, one in particular where it appears the appraiser who is sent by the Appraisal Management Company, may not be the right appraiser for the job, but was sent anyway. One specific case which involves a friend of mine doing a refinance. In my opinion an appraiser doing a manufactured home should know what the data plate is or the appraisal should be assigned to someone else (ya think?)—(the data plate is the piece of paper glued to the wall in the laundry room or under the kitchen cabinet or in a closet that says where and when it was built and by who, with the data on the insulation, snow load roof etc) and the HUD Tag is the metal plate affixed to the outside of the structure, just so ya know, in case you didn’t.
Almost every lender requires a picture of both (proof) i understand. It must have been a bad day for the appraiser because pictures of the data plate were forgotten. Two Weeks Later the appraiser had still not been back to the property to take the pictures that had been forgotten. FINE. So the appraisal was held up by the appraiser, my friend lost his loan lock, costing more $$$. The only thing the loan officer could do is write the appraisal management company and say the the appraisal is still needed, over and over and over again. Good job appraisal management company and it cost my friend more money for you. (Ya Dorks).— It just cost the owner (in this case) more for this appraisal because it is being handled by an Appraisal Management Company and they get paid to manage. So what are they managing? Incompetence? It sure appears so in this case. It has taken TWO Months to get the appraisal done by these yeah-who’s. The loan officer is not allowed to call the appraiser directly because of the hands off rules (HVCC) to loan officers who can have no direct contact with the appraiser and is not allowed to know who the appraiser even is. Otherwise a phone-call would have been made to the appraiser to say, What Are You Doing?
The reason I know is because my friend told me. —So the Net result of that is, the owner, my friend, lost the loan lock because it took this appraisal process TWO Months. So someone has to pay for that. It appears the appraisal managment company should, at least in my opinion pay for that, but of course they will not .
No matter what kind of business you are in there are always going to be the select few who try to manipulate the system by doing unethical things. The end result is more rules to govern us in everything we do. Unfortunately even tho HVCC was put in place with the best of intentions by Congress I believe, there are those things like this, that because you have no control, they spin out of control on their own like a car going 100 mph with no one controlling the wheel.
Now that’s just plain crazy. Ya Think?