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Home Buyers Beware!!!

Buyers Beware!!!

If you're a first-time home buyer considering buying a home and planning on using the $8,000 tax-credit (set to expire 30 Nov 2009), then you need to be aware of the new limitations placed on your ability to get a loan quickly.  I refer specifically to the new, so-called "3/7/3" rule.  Here are the basics:
  • After you submit you loan application, the lender has 3 days to provide you with Truth in Lending disclosures and a Good Faith Estimate.
  • Once you receive the above disclosures, you have to wait 7 days before you can actually use the loan you applied for to purchase a property.
  • If the rate or APR changes an 1/8% or more (increase or decrease) from the initial disclosures, the information must be re-disclosed and you must then wait an additional 3 days to complete your purchase.
Aside from the fact that this new rule may prevent you from submitting an acceptable offer before another buyer has purchased the home, it may prevent you from completing your purchase before the deadline to receive the tax-credit.

In short, pre-approval from a lender has never been more critical than it is currently.

Posted Monday Aug 10