Loans

Funding your real estate purchases

 

Thinking about buying a home or any other real property? Then you need to know how much you can qualify to borrow. To insure your success in your home buying efforts, reduce the stress and frustration you may have to deal with, and make the process pleasant and efficient, call me now and let’s discuss how we can make this process simple and enjoyable. I will be able to best negotiate on your behalf when you have your loan 100% approved before we head out to view property.

Residential Home Loans:

Conventional loan, FHA loan, VA loan, or  custom home construction loan – what kind of loan might work best for you? Call Maureen at 602-791-0898 and let’s chat about your objectives and put you in touch with mortgage loan professionals who can help you figure out what loan product best fits you and start the pre-approval process.

Investment Property Loans:

Buying an investment property? Income property loans are a different animal with different requirements. Call Maureen to talk about mortgage professionals who specialize in commercial and investment loans.


TRID: New loan closing process just started on October 3, 2015.

Most loan applications taken on or after Oct. 3, 2015 now fall under the new Consumer Finance Protection Bureau (“CFPB”) new TRID rules which creates new documents and significantly changes the residential loan closing process. All buyers planning to purchase a property using Conventional, FHA, VA or FMHA loans need to be aware of these new closing requirements. The only loan types not included under these new rules are reverse mortgages and home equity lines of credit (HELOCS.)

Here is a brief description of what recently changed: The Good Faith Estimate (“GFE”) and the initial Truth in Lending (“TIL”) forms have been replaced by a new Loan Estimate form.  The HUD-1 Settlement Statement and the final Truth in Lending has been replaced by a new Closing Disclosure form. The time frames prescribed by this new Closing Disclosure could potentially cause delays in closing escrow, so pay attention to this if you are getting ready to buy a home. Borrowers must be given a three day Waiting Period so they have time to review the Closing Disclosure before signing loan documents. Because the standard Arizona Association of REALTORS® (AAR) Residential Resale Real Estate Purchase Contract specifies that the borrower is to sign loan documents no later than three full days prior to the close of escrow date, the new Closing Disclosure requirement will impact the current closing process. Let’s say you are under contract with the close of escrow date scheduled for Friday, November 20. That means the borrower is to sign loan documents on Monday, November 16. Under the new rules, the borrower must have the Closing Disclosure three business days before signing the loan documents, so the Closing Disclosure must be delivered no later than the previous Thursday, November 13. So in this case, Thursday, Friday, and Monday count as waiting period and the Closing Disclosure has to be delivered eight calendar days before the scheduled close of escrow date. If you are scheduled to close anytime around a holiday, be aware that the number of calendar days could be even longer. Plus, the Lender can deliver the Closing Disclosure by email, regular mail, or hand delivery, so depending on which method they use, additional days may have to be added to above the time frame before the Waiting Period begins.  Lenders are now responsible to prepare and delivery the Closing Disclosure to the buyer, (previously the escrow officer prepared the HUD-1 Settlement Statement and presented it for approval.)

The new requirements are anticipated to add up to fifteen days to the closing period for the majority of financed residential purchases, meaning instead of expecting to close escrow in 30 days on the purchase of a home, you can now plan on a forty-five day escrow.  Buyers and Sellers both would do well to be 100% ready to close at least eight days before the scheduled closing date. So, Sellers, don’t delay completing any repairs you have agreed to make. And, for sure, don’t anyone think about requesting last minute changes or ask to renegotiate anything, because doing so could kick in a new Closing Disclosure with a new three day waiting period that will then delay closing. An additional three day waiting period will be required if the APR changes by 1/8% for a fixed rate mortgage or by 1/4% for a variable rate mortgage. If anything happens near the end of the transaction that changes the APR, be aware there may be an additional three days waiting period required before loan closing.  Adding a prepayment penalty or a change in the loan type also adds an additional three days.