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What you should know about financing and the VERY BEST RATES around!
I went to a meeting yesterday about what's going on the mortgage world and how to protect our clients, and ourselves. Here are a few of the things that I learned, in no particular order:
Make sure the purchase agreement includes language that protects the buyer, and their deposit, in the event that the loan does not fund for reasons outside the buyer's control (i.e. the lender going out of business) so that the buyer can get their full deposit back.Make sure that the lender in the transaction is someone that you and your client know and trust -- whether you are the listing agent or the selling agent.Give extra time for removal of contingencies, funding and closing. With lenders tightening up, they are scrutinizing everything more and you don't want to have to ask for an extension. Additionally, the lenders with the good pricing are getting very back logged.Make sure you get not only a preapproval letter, but a rate lock commitment and a commitment letter from the lender, which shows that all conditions have been signed off by the underwriter, BEFORE you remove contingencies.It's a good idea to have a back up plan (Lender B and Lender C) just in case Lender A ... more
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