Comments on: Good Faith Estimate – Protecting Your Earnest Money

By: Joel

Joel — Wed, 03 Jun 2009 04:33:43 +0000

I know and you know it, but apparently Obama doesn’t know it: http://market-ticker.denninger.net/archives/722-Obama-You-Need-To-Fire-Everyone.html

His whole “plan” is dependent on what you call a magic wand that he doesn’t have.

By: ARDELL

ARDELL — Wed, 03 Jun 2009 01:01:23 +0000

Joel,

Anyone who thinks the President of the United States (regardless of who he may be from time to time) can keep an interest rate from fluctating on a daily basis, doesn’t understand interest rates.

That said, I have a lot of faith in Obama. I just don’t think he has a magic wand.

By: Joel

Joel — Tue, 02 Jun 2009 20:28:31 +0000

“Give yourself a little breathing room for rates to fluctuate while you are looking at property and making offers. You don’t want the fact that rates are moving up, to stress you into making bad choices about other things, during the process.”

Tut tut. Don’t you have faith that Obama will be able to keep interest rates low to help the economy?

By: ARDELL

ARDELL — Tue, 02 Jun 2009 05:21:32 +0000

Rhonda,

When interest rates are falling vs. rising, it’s not a big issue. When all houses were selling for well over the assessed values, it was not an issue.

The issue has been exacerbated by current market conditions.

By: Rhonda Porter

Rhonda Porter — Tue, 02 Jun 2009 01:08:54 +0000

Ardell, I’m surprised that everyone doesn’t obtain a good faith estimate prior to making an approval. I thought this was common practice.

I (and I hope other LO’s) tell clients they have a preliminary GFE (based on a specific sales price, down payment, closing date–for prepaids/reserves, rate, estimated property taxes at 1.25% of sales price)… before they make an actual offer, they should contact their LO to get an updated GFE to see more current rates and the payment and down payment specific to that property.

Preapprovals do have payment limits (interest rates, home insurance and property taxes will influence this) and funds for closing must be verified.

By: Nancy Steffen

Nancy Steffen — Mon, 01 Jun 2009 23:55:03 +0000

As a 30+ year escrow professional I can’t say enough how very wise I think this is.

It’s been a good escrow practice to generate a HUD once escrow receives loan docs and get that out to all the parties, their lender and agents. But that time frame is really too late if there is a big problem.

As Real Estate Agents, it is very important to take this lever of responsibility to insure your transactions go smoothly!