Why Do Lenders Require a Real Estate Contract?

     
Why Do Lenders Require 
a Real Estate Contract?


http://www.genemundt.com     One of the Loan Officers in my office had a Seller's Attorney recently ask him ... 

     "Why does a Lender need a copy of the Real Estate Contract?"

     Admittedly, I was somewhat taken-aback by this basic question, but I believe my LO handled it pretty well.  He responded to the attorney with 2 questions of his own:  

  • How else would a Lender be able to confirm the actual terms of a real estate sale?
  • What Appraiser would accept an Appraisal Order without receiving a copy of the Contract in a Purchase Transaction?
 
     Below is what Fannie Mae has to say regarding this issue:

     Fannie Mae's policy is intended to help ensure that the appraiser is aware of all relevant aspects of the transaction.  The sales contract provides important sales and financing data, including whether there are any concessions as part of the transaction.  

     If the contract is amended, the Lender must provide the updated contract to the appraiser to ensure that the appraiser has been given the opportunity to consider any changes and their effect on value.  If the appraiser determines that there is no impact to value, then no additional commentary is required from the appraiser. 


      This fact may be unknown to clients and others within a transaction:  But when a Mortgage Lender prepares a Loan Application and/or Good Faith Estimate for a Purchase Transaction, they MUST correctly disclose the effect of Real Estate Transfer Taxes, as dictated by the terms of the Contract.

https://1609956119.secure-loancenter.com/FreeConsult.aspx
     Participants within a transaction must be aware that:  Every transaction is uniquely agreed to by the parties involved ... and every community, county, and state is different in this regard. 

     Facts are:
  1.  Not all municipalities or jurisdictions charge such fees.  Some charge the Buyer.  Others charge the Seller. 
  2.  Entities such as Fannie Mae, Freddie Mac, FHA, VA, and others simply are exempt from paying Transfer Taxes.  

     Lenders and Appraisers need to know:
  • Are there any Closing Cost Credits?
  • Are there any Concessions being offered by the Seller?
  • If Concessions are involved, do they impact Value?
  • Is the transaction an "Arms-length Deal"?       
     and very importantly, they also need to know:

  • Contingency dates for financing
  • Closing Dates
  • Real Estate Tax Proration Agreements
  • Names of the participants in the transaction, including but not limited to the obvious ones 
     
     The Lender's ultimate task is to Close the transaction and provide the funding.  But in order to do that ALL the relevant data must be made available ... and/or be tracked down. 

     It's important to be aware and understand why this information is needed.  It's more important to comply.  The financing process will meet challenges and delays if the information is missing ... 


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     *  Hoping to Buy a home in the Greater Chicagoland area?  Contact Me Today!  I'll put my 37 years of Mortgage experience hard to work on your (or your clients') behalf.
     I can be easily found at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
 https://1609956119.secure-loancenter.com/FreeConsult.aspx
 




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Gene Mundt, Mortgage Lender, a Lender with 36 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, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL



Referrals are Welcomed!

 

           

Gene Mundt's Holiday News and Cheer - December 22, 2014

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First, I want to thank you again for your business and support offered during this past year and beyond.  I, my team, and my family all appreciate it greatly.

I hope this message finds you and yours enjoying all the fun and joy the Holiday Season brings.  Below, you'll find some timely tips, info, recipes, and more to help you amp-up your Holiday celebrations. 

Enjoy ... stay safe ... and spread the love and cheer this Season holds ...

Gene
 
 
32 Easy And Inexpensive Ways To Keep Kids Entertained This Holiday Season ...

Otherwise they’ll never stop asking, “Can we open presents yet?”     (MORE ...)


Taking Better Party Photos with Your Smartphone ...

Enjoying a night out or party with friends presents the perfect photo opportunity. Unfortunately, all of those places have tricky lighting conditions and, chances are, you're not hauling a camera with you, so those shots need to be made with your smartphone.

But using a smartphone doesn't mean you can't get great photos. Follow these five smartphone photo tips and you'll get shots of friends you'll be proud to share.   (MORE ...)


RO-tel it on the Mountain party bites …

Trust me, you’ll wanna “RO-tel it on the mountain” when you take your first bite! 

"Click" on the picture below for the recipe ...


http://pearls-handcuffs-happyhour.blogspot.com/2012/07/ro-tel-it-on-mountain.html

 
Looking for ways to reduce your energy and water use?  Who isn't!

energySMART is offering a FREE energy-saving kit to each Nicor Gas customer household ...

For more info & to request your FREE energy-saving kit, click HERE!
 
 
Holiday Fire Safety Tips ...

The holiday season is one of the most dangerous times of the year for household fires, so take note of these tips to reduce your risk.  


FREE Things to Do In Chicago with Your Family/Kids: Website/Ideas ...

"Click" on each link below to go to the websites!



RECIPE:  Apple and Cinnamon Whole Grain Breakfast Strata ...

"Click" on the picture below for this delicious make-ahead recipe, perfect for a Holiday Morning ...

http://www.thekitchn.com/recipe-apple-cinnamon-whole-gr-137484


10 Tips for Throwing an Awesome, but Cheap, 2015 New Year’s Eve Party ...

The year 2014 is quickly coming to a close. What will you be doing when the ball drops?  Hopefully not sitting alone, feeling sorry for yourself because you’re too broke to host your friends.

A rockin’ New Year’s Eve party doesn’t have to be expensive. Check out the video below in which "Money Talks News" savings expert Stacy Johnson shares his tips on how to throw a cheap, yet awesome, end of the year bash.   (MORE ...)


A HANDY REMINDER for those that Closed a Mortgage with me during 2014 ...

I'll be sending out a copy of your HUD Closing Statement (for use in filing tax returns) very soon. 

Be watching for an upcoming mail delivery soon!  Questions?  Contact me!


Happy Holidays to All!
 
 
Gene Mundt
Mortgage Lender  -  NMLS #216987  -  IL Lic. #0006220
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524-2281    
https://1609956119.secure-loancenter.com/FreeConsult.aspx
 
 
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Gene Mundt, Mortgage Lender, a Lender with 36 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, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL

Referrals are Welcomed!


 



 

Fannie Mae's Recent Appraisal Guideline Updates

     
 Fannie Mae's Recent Appraisal Guideline Updates
    
http://www.genemundt.com/ContactUs.aspx
      Fannie Mae recently updated some of their Appraisal and property-related guidelines ... 

     It's important to note that these updated Fannie Mae guidelines/points are NOT necessarily the policies of Lenders, Banks, and other entities ... and can NOT be applied universally for every scenario or every transaction.

     For instance:  It's been common practice for Appraisers to use Comparable Sales within 6 months of the appraisal date.  

     Fannie Mae states that it is acceptable to consider and include a sale from OVER 12 months ago, as it MAY be more appropriate than other more recent sales, which are actually less similar to the Subject Property.  The Appraiser must provide an adequate explanation and support for using such a sale ... and of course, reflect any increases or decreases in value (if any) from that time period to the present.  

     Please keep this in mind when transacting in smaller communities or rural locations where the number of recent and truly similar comparable sales are limited.   

     In this extreme case where appropriate, such as smaller housing markets or rural locations, it's also allowable for an Appraiser to use Comparable Sales and Listings located OVER one mile away.  But those sales and listings must be thoroughly and satisfactorily explained to Underwriters however.

     In rare and extreme cases: Appraisers can actually use and adjust for sales that otherwise are not truly comparable. Again, in those instances the Appraiser must fully-explain those Comparables as the best and most appropriate available at the time the Appraisal is performed.  

     Also keep in mind:  Guidelines have been put in place to address the comparability of sales by measuring the percentage of dollar adjustments made by the Appraiser to and from the respective Sales Prices of the Comparables.

https://1609956119.secure-loancenter.com/FreeConsult.aspx     New Information Available:  Fannie Mae will okay a loan on a property where the utilities were not turned-on at the time of the Appraisal.  

     However:  Lenders, Banks, End Lenders, or others involved in the transaction MAY insist on the utilities to be turned-on and noted to be functional.  There is no one answer to this question or issue.  

     Please consult your Lender for guidance ...


http://www.genemundt.com/ContactUs.aspx

     *  For answers to Mortgage questions and Mortgage assistance in the Chicago-area, please contact me.  I'll put my 37 years of Mortgage experience and expertise hard to work on your (or your clients') behalf.
     I can be easily found at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
https://1609956119.secure-loancenter.com/FreeConsult.aspx
 
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 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 

Gene Mundt, Mortgage Lender, a Lender with 36 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, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL

Referrals are Welcomed!
    

 

Recycle Old Non-Working Holiday Lights at the Plainfield Public Libary in Plainfield, IL

Recycle Old Non-Working Holiday Lights at the 
Plainfield Public Libary in Plainfield, IL
 
 
http://www.genemundt.com
         

     It seems, that no matter how carefully I wrap our holiday lights the previous season , there's always a strand or two that doesn't survive ...  

     It's why I was so happy to find out that the Plainfield (IL) Public Library is again offering a holiday light recycling service now through February 22, 2015.  It's so much better to recycle the old lights than add them to a landfill.

    The following lights (all lengths and colors) can be dropped of at the Plainfield Library (whether open or closed) to be recycled: 
  • Mini-holiday lights (or Italian Lights) 
  • C7 lights 
  • C9 lights 
  • Rope lights 
  • LED lights 
  • Old extensions cords 
   
http://www.genemundt.com     The Library will see that they are re-purposed or recycled by Elgin Recycling.
     The Library receives (15 cents/per lb.) for every pound of lights collected.  The proceeds will be used to fund "Go Green" events for the Plainfield area ... and activities for the community. 
     All drop-offs can be made at the Plainfield Library, located at:    15025 S. Illinois St., Plainfield, IL.   

     Collection boxes are located next to the Book Return Window at the Library and will be available now through February 22, 2015.  


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 *  Looking to Buy, Build, or Refinance a home in Plainfield, Will County, or elsewhere in the Chicagoland area?  Contact me!  I'll put my 37 years of mortgage experience, knowledge, and expertise hard to work on your behalf.
     I can be found at any of the following:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524-2281    
https://1609956119.secure-loancenter.com/FreeConsult.aspx
 
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender

 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 

Gene Mundt, Mortgage Lender, a Lender with 36 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, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL

Referrals are Welcomed!

2017 Will County Fall Festivals, Pumpkin Farms, Corn Mazes, Hayrides

2017 Will County Fall Festivals,  Pumpkin  Farms,  Corn Mazes, Hayrides       The look of Fall has begun to arrive in Will County and...