New Loan Conditions Deadline Will Force Buyer Qualification

Here is industry renound instructor, broker and appraiser Patrick Armbrust, from Armbrust Real Estate Institute. They are located in Greenwood Village, Colorado. Armbrust Real Estate Institute has been teaching Real Estate Classes for over 45 years. Armbrust says that there are some big changes in the new contracts effective in 2008. One major issue will be the loan conditions clause. The new clause will force the buyers to be approved and qualified prior to looking at homes. Armbrust is attending the 2007 Colorado Association Of Realtors Convention held at the Broadmoor Hotel in Colorado Springs, Colorado as an exhibitor. This event is held every year for real estate professionals and Realtors. Topics of interest such as real estate politics and policies as well as real estate education and industry vendors are all present at the Realtor Convention

Posted in Headlines, Metro Brokers, Denver Colorado Real Estate, Colorado Association Of Realtors, Real Estate Industry

Comment from: Ken Cook [Visitor] · http://novationmortgage.com

I must add, as a lender, fat chance on getting an "approval" without a property under contract. In fact, there can be no such thing. It's still a pre-approval until a Clear To Close is issued. Yes, we can examine the borrower precursory but I'm not about to waste my staff's highly valuable time to get an approval when there isn't even a contract and a broker cannot give an approval without the lender's approval. Maybe it's just semantics but what this is asking for is not possible - only a pre-approval is what you will get (pre-qualification). It takes HOURS OF EFFORT and THOUSANDS OF DOLLARS IN RESOURCES to get an approval and any broker or lender willing to risk that time being a waste is welcome to it. We have real customers with contracts on homes to deal with.

Permalink November 03, 2007 13:26:02

Comment from: Mark.Eibner [Member] · http://www.MarkEibner.com

Hey Ken- thanks for the great comment! I agree with you 100% I have seen the new section change and it pretty much puts the screws to the buyer and the buyer broker to feel pretty sure as to whether they are IN or OUT on financing, very early in the contract. It leaves very little room for ambiguity in regards to escape clauses..as there are none after the deadline date.

Permalink November 03, 2007 17:15:30

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