1) Fannie and Freddie’s (conventional loans) maximum loan limits will be reduced effective October 1st, 2011 from $729,750 to $625,500 (in our general area)…unless Congress moves to delay the reduction. There is noindication right now that they will delay it.
2) All settlements with conventional (not FHA or VA) loans higher than $625,500 MUST settle BEFORE October 1st as the date of the MORTGAGE NOTE must bebefore October 1st, 2011 (It cannot be ON October 1st!!!) **Check with your lender to see if they are requiring their loans to be closedearlier. Some are implementing this earlier than others.
3) Check your upcoming settlements and if your buyer has a conventional loan above $625,500 and it’s scheduled to close on or after October 1st you need to either move up the settlement date or ask your buyer what they are doing to reduce their loan to $625,500 or less and still be approved for the loan!
4) If you a have a Listing priced about the $625,500 threshold or higher you may want to contact the selling agent and double check that your buyer doesn’t have a problem with their loan amount and loan approval.
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