2008 Purchase Agreements - How to make financing easier.

Mortgage and Lending with Hunt-Miller Insurance Agency

As a mortgage professional, I have noticed that not much attention has been placed on the format of the new purchase agreements 2008 (sales contracts).  Some of the changes that effect financing that should be included on the Good Faith Estimate for the buyers are:

1.  The buyer now has to pay for the warranty deed (doc preparation) as a buyer's fee (this used to be a seller's fee).

2.  The buyer now has to pay for the recording of the deed.  (this used to be a seller's fee).

3.  The buyer now has to pay the transfer taxes.  (this used to be a seller's fee).

Above being said, here are some pet peeves that delay processing for financing:

1.  Illegible contracts.

2.  Missing Addendums.  FHA Addendum.  RE Certification Addendum.  Down payment assistance wording disclosure.  Earnest Money receipt.

3.  Missing signatures.

4.  Missing Power of Attorney letters for 3rd party Selling on behalf of the Owner of Public Record.

5.  Contact numbers missing for all parties, especially buyers and sellers.  Also the parties names not being typewritten or printed under the signatures - legibly. 

6.  Listing minor repairs and personal property in the contract.  Every one of which has to be addressed by the appraiser.

7.  Not obtaining the signature of the co-seller or co-borrower OR obtaining a signature that isn't going to be involved in the financial transaction.

8.  The address being incorrect.  Usually the house number or Rd. instead of St. or the ZIP and County being incorrect or not including directional portion of address.

9.  Not giving Home Owner Association information... properly identifying property as SFD, Condo, PUD or year built (legal description).

10.  Not disclosing correct earnest money or seller contribution toward closing costs or providing all addendums where any important figures changed such as Sales Price.

11.  A closing date that is not even close to being able to be met.

12.  Listing the closing attorney to be used, but not providing the firm name or phone number.

I truly want all purchases to run smoothly and every one involved be happy as singing larks on a summer day; without creating unnecessary delays.  May all your closings go SMOOTHLY.




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