As if things weren't complicated already, there is a recent new development in mortgage lending that may pose a challenge for lenders. There are important changes to the Federal Reserve Board Truth in Lending Regulation (Reg Z), and applies to loan applications filed on or after July 30, 2009. Lenders will have new disclosure requirements for mortgage loans.
Because this development is complex, it could result in potential delays in getting loan approval and in getting to closing. Key highlights are as follows:
• This applies to all mortgages secured by a borrower’s home, including primary and second homes and refinancings. It does not apply to investor loans.
• After someone applies for a loan, lenders must give good faith estimates of mortgage loan costs within 3 business days. This is called "early disclosure". Other than charging a reasonable fee for a credit report, the lender may not collect any fees before the disclosure is provided.
• There is a 7 day waiting period after the consumer receives the early disclosure, during which no closing can occur.
• The waiting periods may be shortened or waived for a “bona fide personal financial emergency,” but only after receiving an accurate TILA (Truth In Lending Regulation) disclosure. The Fed has stated that it “believes waivers should not be used routinely to expedite consummation for reasons of convenience.” The Fed has decided not to insulate lenders from liability, even where a consumer modifies or waives the waiting periods. (I see lenders discouraging consumers from shortening or waiving the waiting periods to protect themselves).
• The lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan if the annual percentage rate (APR) changes by more than 0.125 percent. Now more than ever it is important for any fees to be as accurate as possible, because the APR includes not only the interest rate on the loan, but certain other costs related to settlement that would call for a corrected TILA disclosure.
To read more about the new rule, here's a link:
https://www.wellsfargo.com/downloads/pdf/mortgage/HERA_HOEPA_Retail_FINAL_E.PDF
"Each step of the way it gets more complicated, requiring more knowledge and experience: knowledge and experience that we as Realtors® have and bring to task."
– Ron Phipps, 2009 NAR First Vice President
Friday, July 31, 2009
Wednesday, July 29, 2009
Ouch! That Hurts!
Today I got my feelings hurt, but it wasn't on purpose. The person who did it is the nicest, most polite person I think I have ever met. In their enthusiasm and excitement, they announced their upcoming move to a new home. I'm pleased for them, but I also wondered, "Why didn't they call me to help them through the process?".
I confess to a little chest pain as I got the news. As a former corporate trainer, I used to teach others how to deliver superior customer service. I give it my all every single time with every single client I work with. My work is not just work, it is who I am! Therefore, I can't help but take it personally when someone I know doesn't ask me to help them buy or sell their home.
Possibly this person did not want me to know their personal situation. I can understand that. Many do not realize that I hear all kinds of things regarding marital status, financial status, and other personal information on a regular basis. Most aren't aware that I am ethically bound not allowed to reveal sensitive information about my clients, because it could compromise their home sale or purchase. I wouldn't do that sort of thing, anyway. I'm just not that type.
Perhaps they have a good relationship with another REALTOR they trust. If so, I have no problem with that. In fact, I hope that is the situation. My mind played over other various reasons as to why I wasn't called. The rest of them weren't comforting to me, so I had to just let it go.
Sometimes things don't always go smoothly, and it's the nature of the home buying process. However, I do all I can to make a potentially nerve-wracking process as smooth and stress-free as possible. It pains me when I hear the various horror stories of home purchases and sales gone bad. I wish this person and their family the best, and I hope the process goes well for them.
I confess to a little chest pain as I got the news. As a former corporate trainer, I used to teach others how to deliver superior customer service. I give it my all every single time with every single client I work with. My work is not just work, it is who I am! Therefore, I can't help but take it personally when someone I know doesn't ask me to help them buy or sell their home.
Possibly this person did not want me to know their personal situation. I can understand that. Many do not realize that I hear all kinds of things regarding marital status, financial status, and other personal information on a regular basis. Most aren't aware that I am ethically bound not allowed to reveal sensitive information about my clients, because it could compromise their home sale or purchase. I wouldn't do that sort of thing, anyway. I'm just not that type.
Perhaps they have a good relationship with another REALTOR they trust. If so, I have no problem with that. In fact, I hope that is the situation. My mind played over other various reasons as to why I wasn't called. The rest of them weren't comforting to me, so I had to just let it go.
Sometimes things don't always go smoothly, and it's the nature of the home buying process. However, I do all I can to make a potentially nerve-wracking process as smooth and stress-free as possible. It pains me when I hear the various horror stories of home purchases and sales gone bad. I wish this person and their family the best, and I hope the process goes well for them.
Friday, July 24, 2009
Website: Virginia Homeowners Alliance
Back in April I mentioned a website that features news concerning homeowners in Virginia. We Virginia REALTORS have provided this site so homeowners can get information regarding real estate taxes, zoning issues, property assessments, and more. It also provides resources for you to maintain your home, landscape your property, get local school report cards, and find out about your local government. Best of all, it's FREE and available to all Virginia homeowners.
All you have to do is join the site, and you will never receive any information you do not want.
I have business reply postcards you can fill out to join, or you can go to the site: http://www.VAHomeownersAlliance.com/
Just tell them I sent you!
All you have to do is join the site, and you will never receive any information you do not want.
I have business reply postcards you can fill out to join, or you can go to the site: http://www.VAHomeownersAlliance.com/
Just tell them I sent you!
Sunday, July 19, 2009
When does "Sold" mean "Sold"?
The other day I drove through a neighborhood and saw the word "sold" above a yard sign. I'm certain that because the buyer and the seller have agreed upon a price, they are convinced the house has been sold. This is not necessarily true. So when does "sold" really mean "sold"?
A property has been sold with at least the following:
1. both parties have agreed upon price of the property,
2. the buyer has been fully approved by the bank (this is major these days),
3. a property appraisal has been completed and has been approved by the bank,
4. insect infestation and water inspections have been done,
5. the septic system has been inspected (if private septic),
6. a home inspection has been done,
7. both parties agree to what will be repaired,
8. both parties agree as to who will pay for the repairs,
9. both parties agree to terms of the entire purchase agreement,
10. a radon gas inspection has been done,
11. any title issues have been resolved.
12. homeowner's insurance has been secured.
Some properties may require even more to be completed, depending upon the location, the home itself, or the type of financing. A few examples of this would be: flood insurance certificates or road maintenance agreements may be necessary. Buyers and sellers may wish to purchase a home warranty before closing. For homes built before 1978, a lead-based paint inspection may be necessary.
Now more than ever it is crucial that you seek the advice of a a real estate professional when it comes to the largest investment you will make in your lifetime. A REALTOR can not only save you money, but can also keep you from making costly mistakes you will regret. Contact your REALTOR today if you are considering buying or selling a home.
A property has been sold with at least the following:
1. both parties have agreed upon price of the property,
2. the buyer has been fully approved by the bank (this is major these days),
3. a property appraisal has been completed and has been approved by the bank,
4. insect infestation and water inspections have been done,
5. the septic system has been inspected (if private septic),
6. a home inspection has been done,
7. both parties agree to what will be repaired,
8. both parties agree as to who will pay for the repairs,
9. both parties agree to terms of the entire purchase agreement,
10. a radon gas inspection has been done,
11. any title issues have been resolved.
12. homeowner's insurance has been secured.
Some properties may require even more to be completed, depending upon the location, the home itself, or the type of financing. A few examples of this would be: flood insurance certificates or road maintenance agreements may be necessary. Buyers and sellers may wish to purchase a home warranty before closing. For homes built before 1978, a lead-based paint inspection may be necessary.
Now more than ever it is crucial that you seek the advice of a a real estate professional when it comes to the largest investment you will make in your lifetime. A REALTOR can not only save you money, but can also keep you from making costly mistakes you will regret. Contact your REALTOR today if you are considering buying or selling a home.
Thursday, July 16, 2009
PeekYou: Online White Pages
Sometimes the computer is a great source of information, but sometimes it isn't. Everyone knows what Wikipedia is, but what about PeekYou? The site calls itself a "new kind of online white pages", where anyone can contribute information.
Just for kicks, I looked up a local real estate company I was familiar with in order to gauge the quality of information. Agents whose names I had never heard of were listed there, along with some of their ages. One female agent I did know was listed as being 109 years old.
So there you go, folks. When you get information online you must determine how the information was gathered. If you'd like to visit PeekYou yourself, here's the link: http://www.peekyou.com/
Just for kicks, I looked up a local real estate company I was familiar with in order to gauge the quality of information. Agents whose names I had never heard of were listed there, along with some of their ages. One female agent I did know was listed as being 109 years old.
So there you go, folks. When you get information online you must determine how the information was gathered. If you'd like to visit PeekYou yourself, here's the link: http://www.peekyou.com/
Monday, July 13, 2009
July issue Vera's Real Estate News
A new issue of Vera's Real Estate News came out last Monday. In it were articles about the Virginia housing market, Consumer Reports Best Buys, power tools, green homes, real estate listings, and helpful website links.
To see a copy of the latest issue, go to
http://www.clientdirect.net/news/?Pub=35020
If you would like to receive a copy on the first Monday of each month, contact me with your email address, and I would be happy to add you to my list of subscribers.
I also welcome suggestions for articles and links.
To see a copy of the latest issue, go to
http://www.clientdirect.net/news/?Pub=35020
If you would like to receive a copy on the first Monday of each month, contact me with your email address, and I would be happy to add you to my list of subscribers.
I also welcome suggestions for articles and links.
Friday, July 10, 2009
Mold, Moisture, and Your Home
"Mold is part of our natural environment and plays an important role in the natural decaying process. But molds should not be allowed to grow indoors because they produce allergens, irritants, and even potentially toxic substances. There are many types of mold which have different characteristics but the one thing that they all have in common is that none of them will grow without water or moisture. Therefore, mold can be controlled by reducing indoor moisture. If there is mold growth in the home, clean up the mold but fix the water and/or moisture problem as well, or the mold will simply return.
"Air sealing a home that has a moisture problem can very easily make matters worse. A leaky house can also have moisture problems but tightening a home without first
correcting the source of excessive moisture is a mistake. Things to look for that may be causing mold and moisture are:
• Fix all water leaks including plumbing leaks, faucet leaks, roof leaks, and any water entering the basement or crawl space.
• Clean and repair roof gutters regularly and be sure that gutters are directing water away from the home.
• Keep air conditioning drip pans clean and drain lines unobstructed.
• Be aware of excessive condensation on windows. This can be a sign of a moisture problem.
• Make sure that all vent appliances that produce moisture, such as clothes dryers, stoves and furnaces are vented properly to the outside.
• Unvented space heaters like kerosene heaters and unvented gas heaters and fireplaces produce tremendous volumes of moisture and these units should be avoided.
• Seal all thermal bypasses that can move warm air through the house and cause moisture to condense on cooler surfaces.
• Use air conditioners and dehumidifiers when needed.
• Make sure that all bathroom and kitchen exhaust fans are working properly or open windows when needed.
• Be sure that your walls and attic are insulated properly. Gaps in insulated areas can cause moisture problems.
• Have your duct system inspected for moisture and mold growth. A leaky duct system can result in moisture condensation and mold growth. The duct system will then
distribute the mold and moisture throughout the house.
• Check the relative humidity in your home. Kits and meters for measuring humidity levels are sold in hardware stores and in home electronics stores. Relative humidity
should be between 30 and 60% when the house is heated or air conditioned. If it is greater than this, find the source of the excessive moisture. (Be sure that you are not overusing a humidifier in the home.)
• In some summer weather, high humidity levels are unavoidable without air conditioning. In very humid summer weather you should be on the alert for mold and
mildew growth."
From Chapter 2 of The Virginia Energy Savers Handbook 2008: Department of Mechanical Engineering of Virginia Tech Blacksburg, VA 24060
"Air sealing a home that has a moisture problem can very easily make matters worse. A leaky house can also have moisture problems but tightening a home without first
correcting the source of excessive moisture is a mistake. Things to look for that may be causing mold and moisture are:
• Fix all water leaks including plumbing leaks, faucet leaks, roof leaks, and any water entering the basement or crawl space.
• Clean and repair roof gutters regularly and be sure that gutters are directing water away from the home.
• Keep air conditioning drip pans clean and drain lines unobstructed.
• Be aware of excessive condensation on windows. This can be a sign of a moisture problem.
• Make sure that all vent appliances that produce moisture, such as clothes dryers, stoves and furnaces are vented properly to the outside.
• Unvented space heaters like kerosene heaters and unvented gas heaters and fireplaces produce tremendous volumes of moisture and these units should be avoided.
• Seal all thermal bypasses that can move warm air through the house and cause moisture to condense on cooler surfaces.
• Use air conditioners and dehumidifiers when needed.
• Make sure that all bathroom and kitchen exhaust fans are working properly or open windows when needed.
• Be sure that your walls and attic are insulated properly. Gaps in insulated areas can cause moisture problems.
• Have your duct system inspected for moisture and mold growth. A leaky duct system can result in moisture condensation and mold growth. The duct system will then
distribute the mold and moisture throughout the house.
• Check the relative humidity in your home. Kits and meters for measuring humidity levels are sold in hardware stores and in home electronics stores. Relative humidity
should be between 30 and 60% when the house is heated or air conditioned. If it is greater than this, find the source of the excessive moisture. (Be sure that you are not overusing a humidifier in the home.)
• In some summer weather, high humidity levels are unavoidable without air conditioning. In very humid summer weather you should be on the alert for mold and
mildew growth."
From Chapter 2 of The Virginia Energy Savers Handbook 2008: Department of Mechanical Engineering of Virginia Tech Blacksburg, VA 24060
Monday, July 6, 2009
No Extra Charge for This
I took this photo on Saturday, during our final walkthrough of the property. Since no one knew what his name was, he shall be known from that day forward as--Woodrow.
Thursday, July 2, 2009
New listing, great starter home
Country living but close to everything. Great starter home with highly desirable Roanoke county schools. Tastefully updated kitchen and bath, fresh paint. Front porch and two decks for relaxing. Hardwood floor to be resurfaced and new roof to be added. New extrusion well and well pump in 2003. Storage building and 2.14 acres. See me for a private tour. List Price: $124,950Gwyn & Harmon, REALTORS
2222 Electric Rd., Suite 101
Roanoke, VA 24018
http://www.google.com/base/a/5847515/D15726791669446204471
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