Contract Provisions, Housing Supply, Mortgage Volume: Learning Juggling 101

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI


Contract Provisions, Housing Supply, Mortgage Volume:

Learning Juggling 101



Are you actively pursuing homeownership and out looking at homes with a realtor?


If so, I'm sure your realtor has broached many topics with you already. There's a lot to know and stay informed of when buying and financing a home.  It can feel like your juggling lots of things at once.


One facet of the home buying process that's of real importance is the home inspection (which occurs AFTER the contract is agreed upon).  Your realtor has probably recommended that you include an inspection in any real estate contract you're considering.  


That's wise, as a home inspection serves as a form of protection for you.  


A home inspection includes a thorough assessment of the home's current condition.  The home inspector will look for any possible defects that could prove dangerous or costly to fix and identify building code violations that may exist.


This information can prove immensely beneficial for buyers to possess.  It's important, not only in the short-term as a possible re-negotiating tool with Sellers should the inspection reveal structural or more minor issues, but in the long-term, as well.




After the inspection is performed, a buyer has a checklist at their disposal.  They know what issues in their home may need addressing in the future ... whether that be in 1 year, 5 years or 10.  As a result, budgeting or preparation for future upgrades or repairs becomes much easier.  That can prove very advantageous.


The home inspection is typically set-up and performed soon after the buyer signs their real estate contract.  Doing this in a timely fashion is critically important, as most contracts contain a specified time period for the performance of the inspection.


There is another "clause" found within most contracts, as well.  It also requires action be taken (typically 5 to 10 days) of contract "acceptance".  That is the filing of the Loan Application if the Buyer requires Financing.


The importance and adherence to both of these contractual timelines are absolutely critical to meeting the Closing Date agreed upon by both parties within the real estate contract.  This is especially true during a high-loan-volume market such as the one we're experiencing currently.


The Mortgage Application itself leads to the next and important step in the process ... the Appraisal.  The Appraisal must be ordered (unless a waiver of the Appraisal is available) by the Lender. 


Again, time is of the essence, as the demand for homes is currently very strong.  Active buyers are finding that there is often a very limited supply of homes for viewing/sale right now. 


Low housing supply is creating appraisal evaluation issues in many housing markets.  It's driving a flurry of increased competition for homes in these markets.  


That competition is, in turn, elevating housing prices ... or the price that buyers are willing to pay for desirable homes. 


As a result, some appraisals are coming back showing values less than the contract purchase price.  Appraisers sometimes find that the comparables available for their use oftentimes do not "keep up" or justify current listing/sale prices. 


An "unwritten" issue cropping up increasingly often revolves around contract contingencies.  I say "unwritten" because contingencies are seen so rarely in contracts right now.  


That's because (again as a result of the low-inventory/high demand), Sellers don't need to offer any kind of incentives to find a buyer. But it's also true that many Sellers are simply unable to offer closing cost credits, perform repairs, or give concessions to buyers at this time.    


The current high volume of home purchases (and refinances alike) is creating an additional problem too ...  


Appraisal turnaround times have lengthened.  Appraisers are extremely busy right now, as are title companies, attorneys, mortgage providers, inspectors, and etc.


Each of these issues demands that feasible client expectations be set, both for buyer and seller.  They also showcase the importance of placing viable realistic dates on real estate contracts.  


Today's mortgage process has many working parts.  Each part should be in sync with the others for it all to work fluidly and well together.  


To help their own cause and keep stress at bay, clients must remain attentive, responsive, and thoroughly engaged throughout their entire financing process.  Time and timing is everything when seeking a "clear to Close". 


And a "clear to Close" is the ultimate goal and prize ...



*  Are you dreaming of buying or refinancing a home or investment property in New Lenox - Will County - Illinois or Wisconsin?   

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf. I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI #216987
American Portfolio Mortgage Corp
NMLS #175656
Direct: 815.524.2280
Cell: 708.921.6331
eFax: 815.524.2281
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


Your Referrals & Testimonials are Always Greatly Appreciated! 




Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 10/20/2020 07:13 AM
Lending / Financial
Illinois Will County New Lenox
Chicago Area Real Estate BUZZ!
Advice for Buyers
home inspections
mortgage process
pursuing homeownership
mortgage lenders
housing markets
housing supply
mortgage volume
real estate contracts

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Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

Great way to simplify some complex information!

Oct 19, 2020 02:54 PM #1
Anna Banana Kruchten CRS CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ

Hi Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi what I appreciate about your posts is that you write in an easy to understand way that even the first time home buyers can easily understand.  Great info to pass on to clients.  Thank you!

Oct 19, 2020 03:16 PM #2
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

As Anna Banana Kruchten CRB, CRS, Broker, Instructor said, this post makes a bewildering and complex process very clear. I hope you're spreading this throughout your social media presence!

Oct 19, 2020 03:29 PM #3
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Gene:

There is plenty of good education and advice in your post as always.  It's a challenging time, not only for getting an offer accepted but getting through the mortgage process.


Oct 19, 2020 07:38 PM #4
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gene, yes the Appraisal Times are the big  X factor in our market too, my other concern is right before signing loan docs the lenders check employment status and with the Pandemic one never knows if they will be employed during the Escrow Period.....Endre

Oct 19, 2020 09:43 PM #5
Kat Palmiotti
406-270-3667,, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Excellent information! Just to add to the process aspects, in some states (like NY) the inspection is done before the contract. But in most states, it's as you indicated.

Oct 20, 2020 06:08 AM #6
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I do not know how to juggle, but I have done my fair of juggling within transactions that I have worked over the years.

Oct 20, 2020 06:45 AM #7
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Thank you for this great info! 

Oct 20, 2020 07:12 AM #8
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Congratulations on your feature recognition. 

This is good information to share with home buyers.

Oct 20, 2020 07:32 AM #9
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Gene - well-written. Like Brian England I am not an adept juggler for some things but I am grateful when I have access to those who are experts in their field.

Oct 20, 2020 08:49 AM #10
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene it use to be very common around here to not order the appraisal until negotiations on inspection issues were agreed upon.  But now with the increase is sales which has in turn increased the turn around time on appraisals, I am advising my borrowers to either do the appraisal right away, or increase the time period of Mortgage Commitment, and Closing.

Oct 20, 2020 02:09 PM #11
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Every buyer should call you Gene! Knowledgeable juggling can be important.

Oct 22, 2020 03:36 PM #12
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It’s very important to have the provisions in order When you do anything like this even beyond slightly

Nov 05, 2020 10:36 PM #13
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

thanks for sharing with us - you write such useful pieces.  Anyone wanting to buy a home in your area should certainly call you

Nov 06, 2020 05:01 AM #14
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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