As you know the home mortgage industry is constantly changing. Right now we have historically low interest rates, so the time to buy a home is now if you want to take advantage of these fantastic rates. Here are a few changes I just received from one of my favorite lenders, Joseph Krupp. While they are not huge changes, they can impact you at closing. Closing day is stressfull enough for most first time homebuyers. Here are some things to know before you go to closing. Be prepared!
- October 15th is the last day a borrower can file his/her income tax return if they filed an extension for 2009. To obtain mortgage approval after 10/15, the borrower must have filed their 2009 returns and a transcript from the IRS must prove they are filed. This is for all lenders and can cause serious delays to somebody's closing if returns aren't filed.
- Small repairs can now be added on the HUD. Costs under $100 do not require and invoice, costs between $100-$5k will require a valid invoice from a verifiable vendor. Anything over $5k will require end investor approval & exception.
- Credit reports will be pulled within 5 days of the borrower's closing regardless of applicant, loan product, downpayment, credit score, etc. Make sure your clients do not buy or take out any new credit during the purchasing of the home under any circumstances. Any slight increase in debt could kill the entire deal.
- Gift letters will be required on all transactions that involve gift money for approval. There is a standard form that I'd give to the giftee for the giftor to sign/date.
If you are in the market for an Austin area home and are not presently working with a Realtor, please call me. I would be happy to help you through the process of buying or selling a home. I specialize in Relocation and I make the process easy to navigate. I look forward to the opportunity to earn your business.
Betina Foreman, Realtor
Member: Austin Board of Realtors, National Association of Realtors, Texas Association of Realtors, ActiveRain.com-RainMaker, Trulia-VIP & Top Realtor Voices, and Zillow-Neighborhood Pros.