New Tips for Borrowers
18 Jul2009
Filed Under Buying · Tagged: Lending, stimulus, Wells Fargo · Print This Article
A few weeks ago we talked about new government regulations for lenders and appraisers. This makes the loan approval process TAKE LONGER.
Sharon Natarus over at Wells Fargo shared a few tips with me to pass along. These things are important to keep in mind when you are preparing to buy a home and apply for a loan.
- Obtain a credit-checked preapproval before you start to shop for a home.
- It is wise to plan for at least a 30-day close.
- In the initial disclosure packet you receive, the impacts of the new regulations and investor requirements are outlined. Make sure to pose any questions to your home mortgage consultant.
- Know that these new regulations and investor requirements are in place to ensure you have time to consider your loan choice and feel confident to move forward.
- Review the appraisal delivery disclosure and determine whether or not you wish to waive the 3-business-day review period prior to closing.
- Understand that the interest rate on your loan impacts the APR. This means that until you lock in your rate, and exact APR cannot be determined. Minimally plan on locking at least 10 business days prior to the date you wish to close.
- Understand that a change in mortgage product could impact your APR and therefore your estimated closing date.
- Understand that changes in fees by third parties such as your settlement agent could also impact your closing date.
The best way to expedite the close is to lock in the rate and fees as soon as possible, (this would include a reduction in price or sales concessions, after a home inspection).
More:
Resources from Wells Fargo about loan application.
Blog Entry: New Appaisal and Lending Regulations.
[...] mentioned before how the appraisal rules are have changed. (If you need to catch up, read this and this.) The highlights are as [...]