Recently I had a client who was pre-approved through his local bank. We found a home, put in an offer which was accepted and then proceeded to move forward. We had the buyer go through the entire application process, coordinated the settlement company and the local bank so that things would move forward smoothly. They were until 5 days prior to closing when the local bank decided that the buyer needed an additional 10% to bring to closing. This obviously was not an option so we took the buyer to our mortgage broker who works with major companies such as Countrywide and Wells Fargo. The buyer was approved and the loan was closed in two weeks. That is correct two weeks!

Now this makes me wonder what is going on when all the major lenders have the tough lending requirements they do and were still able to get this guy the loan. They even stated that they have no idea why this buyer’s mortgage was changed in midstream as it was an easy loan for them to process. Is this a “red flag” that we should be concerned about? Is there a bigger issue going on with some of the local banks that communities should be worried about?

i guess the question needs to be asked; what happened to that bail out money!

Most buyers and sellers have no idea about the recent changes to the real estate industry that has a direct affect on their personal transactions. Fannie Mae and Freddie Mac have gone under extensive scrutiny and the outcome has brought on new changes in the way loans are handled especially in the appraisal area. In an effort to try and get a handle on the “bad appraisals” new codes were enacted on the way and manner an appraiser could be assigned and what guidelines they must follow when doing an appraisal. Like all new rules and regulations comes a period of questions, confusion and delays associated with the process. Let’s call that the “learning curve”. The National Association of Realtors (R) (NAR) has been working directly with the Federal Housing Finance Agency to make sure that the new codes work for all parties involved.  

I have included links to some of these new changes for your review including a Q&A form. I hope this helps in understand how the changes may directly affect all buyers and sellers.

  http://www.fhfa.gov/webfiles/14611/hvcc_NOTICE_7_22_09F.pdf

https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

http://www.freddiemac.com/singlefamily/hvcc_faq.html

Many people have looked at the new $8,000 tax credit and said “well that doesn’t pertain to me because I used to own a home”. If this is you then wait a moment. Ask yourself the question, “has it been 3 years since you lasted owned a home”? If your answer is “yes” then you could be classified as a “1st Time Home Buyer”. I was recently speaking to someone who made the comment to me that they wished they had this great incentive back when they bought a home. I scratched my head and said “don’t you rent now”? “Yes I have been renting for 4 years”; well guess what this person actually qualified. The answer was clear, most potential buyers don’t know that they can actually be considered a “1st Time Home Buyer” and qualify for the $8,000 tax incentive. There is no repayment like the one created in 2008 which was a bust because of the repayment portion and lack of advertising. There are some other requirements but they are very simple. 

So if you are scratching your head wondering “do I qualify?” then contact me and we’ll discuss your situation. It will only take a few minutes but it could be the difference between you getting $8k back next year or owing Uncle Sam!

Here is a great article concerning the Pittsburgh home sales and what we as agents have been trying to express to home buyers and sellers. These are the facts from RealSTATs which is a great real estate informational company located on the South Side.

Please don’t hesitate to contact me with questions and or concerns.

http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/07/13/daily36.html?surround=etf