Buying a Home in Salt Lake City, UT

5 Tips to Keep Your House Cool This Summer

1. Fans and ceiling fans can make a room feel 6 or 7 degrees cooler
2. Install white window shades, drapes or blinds to reflect heat away from the house.
3. Turn off appliances, electronics and lights when not in use. Avoid cooking and baking mid-day.
4. Replace incandescent bulbs with compact fluorescents, they use a fifth the energy and heat.
5. Add insulation to your attic. Upgrading from 3 inches to 12 inches can cut cooling costs by 10%.

I got these tips from RisMedia. The original article is here.

Here's a bonus tip I'm throwing in because it works awesome for me:

Install awnings or EXTERIOR shade screens. I installed a product called SunShade by Suntex, but there are others out there. It's an exterior mount screen that blocks 60-80% of the heat, but still allows light to enter the house and you can still see out. It significanly reduced the amount of heat entering the house and how long I had to run the Air Conditioner.

 

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

One of the things I recommend Buyers do when considering an offer on a home, or that they do as part of their due diligence, is make contact with the surrounding neighbors.

For one thing, they will tell you all kinds of things about the home, the neighborhood and the sellers. But it also gives you a chance to decide whether or not having them as neighbors might be enough to reconsider the purchase.

Here is a link to an article I contributed to in the Chicago Tribune on this subject:

http://tinyurl.com/talktotheneighbors

This is good advice in any economy.

If you have questions about how, when and why we advise this, feel free to ask!

 

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

 

Good news may come soon for Buyers who qualified for the federal homebuyer tax credit and were Under Contract on a home BEFORE April 30, 2010 AND whose closings may not be looking like they will happen before the original tax credit closing deadline of June 30, 2010.

Today, the Senate approved an extension of the closing deadline to September 30, 2010. It sounds like the House will also have to pass the amendment before it becomes law.

Stay tuned!

In the meantime, if you are one of the nervous Buyers, you probably want your agent to keep working on getting your transaction done before the existing deadline if possible.

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

Effective February 1, 2010, HUD waived the requirement that an FHA Loan could not be issued on a home where the current owner was on title for less than 90 days before a contract to purchase was entered into.

Well, the fact that it was not included in a Mortgagee Letter is causing some problems.

I called HUD today to make them aware of the absence. I have no idea if or when they will actually put it into a Mortgagee Letter or not, but I thought it wouldn't hurt to ask them to.

HUD and FHA were both on board with waiving the rule back on January 15, 2010. It was supposed to take effect on February 1, 2010. OK... it DID take effect then, but it hasn't been implemented by some lenders because the policy isn't easily found, nor was it included in an official Mortgagee Letter (how many lenders stay current on policy changes).

The waiver is supposed to be in effect for one full year unless otherwise extended or withdrawn by the FHA Commissioner. The Special Assistant to the Secretary of HUD that I spoke to today confirmed that the waiver is still in effect. (June 9 2010)

Some stated goals in instituting the waiver are:

• To stabilize home values
• To revitalize neighborhoods and communities
  
• To expand access to FHA Mortgage Insurance
• To allow for the quick resale of foreclosed properties
  
• To combat the effects of vacant and abandoned homes
• To give FHA borrowers accdess to a broader array of recently foreclosed properties

There are a few requirements that go along with the waiver. Some are:

• Transaction must be arms-length
• Sales price of the property cannot be 20% or more than what the Seller acquired it for. (Well, it CAN, but if so, additional requirements must be met)
• Limited to forward mortgages, (not Home Equity Conversion Mortgages)

Borrowers are not limited to foreclosed properties. They can buy bank-owned, HUD-owned, or privately owned homes (Includes both personally owned and entity-owned).

For more details (and the ever-elusive documentation), see HUD's January 15, 2010 release.

The HUD Press Release about the Waiver

The actual waiver itself

It sounds like the lender we're working with is satisfied with the documentation we provided and the transaction would go smoothly.

Has anybody been able to help a buyer purchase a home with an FHA loan where the seller has been on title for less than 90 days, since February 1, 2010? How did it go? Any problems with Lenders or Underwriters?

Thanks for your comments!

 

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

A recent RISMedia article stated that only 22% of home buyers are happy with their real estate agent.

I wondered why this might be, and reading the article didn't really shed any new light on the reasons. Strangely enough, the article talked more about complaints from Sellers, such as, "The agent priced my home too high, so it took too long to sell".

Still, there was some mention of Buyers who felt that the process was not adequately explained, loan terms were not adequately disclosed, or simply felt that their agent was looking out more for themselves, and not for the buyer.

I don't know exactly what percent of past clients are happy with our services, but I feel confident in saying that the number approaches near 100%. (Read some of our past client reviews here)

A few reasons clients are satisfied with our Exclusive Buyer Agency services:

• We always represent the Buyer, and ONLY The Buyer. We never list homes or represent sellers.
  
• Our focus is on educating the client and answering their questions, allowing them to make their own decisions; and we respect the decisions the client makes.
• We understand the process and the mortgage process and options. We will help them understand it too, and help them properly shop for a loan if requested.
• We are specialists. We don't wear multiple hats. We are good at what we do because we focus on Buyer representation at all times.
• We continue to improve our own understanding of the home buying process. We stay current with changes to laws and procedures and changes in the marketplace.
• We don't work with grumpy people. Grumpy persons are not a protected class. If you are sour, angry, or otherwise rude, ungrateful or disrespectful, we will not accept you as a client. We enjoy our job and enjoy working with intelligent, happy people. This, in turn, makes us more pleasant to work with as well!

Are you an intelligent, happy person who wants to ENJOY the homebuying experience?

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

After making multiple visits to a property with a size, layout and price that all seemed "too good to be true" my client decided to make an offer. It wasn't until that point when it was disclosed to us that the property had been used as a meth lab and that cleanup of the property had not yet happened. In fact, it was being sold AS-IS, all cleanup and liability was being passed on to the buyer.

Well, now everything made more sense. But what bothered me most was that this information was not stated up front.

We probably spent over an hour in the house. What if my clients had brought an infant and let it crawl around on the floor that whole time? What if one of them had respiratory problems that were exacerbated by visiting the home? As far as we can tell, nobody was harmed by the experience, but we should have known about the hazardous condition before we went through the place, right?

I found some old posts on meth houses and methamphetamine remediation here on ActiveRain which I shared with my client.

Here are a few that may benefit some other people:

Meth Labs

Identifying Meth Impacted Homes

REO and Meth Labs - Read This, It's Good

DEA Meth Lab Registry for homes that were used as meth labs - Did you know?

In every case where we have found properties that are WAY too good to be true... they are.

So, buyer beware!

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

 

 

We relocated from California at the end of last summer, and having sold our home there, we were excited to begin looking for a new one in the Sugarhouse area.  Initially, we were using a listing agent that was set up for us by the relocation company. 

When it became clear that this arrangement wasn’t working out, we decided to find an agent that was more attentive to our needs and interests.

Our Exclusive Buyers Agent has been excellent at every stage of helping us to acquire our new home.  We had absolutely no pressure to look in particular areas, or to limit the number of homes that we wanted to see, or to rush as we looked at homes.  He set us up with an account, where we were able to store and track homes that we wanted to see, and rate and make comments on homes that we had seen.

On many occasions, he was able to point out characteristics of a home’s location and condition that would affect its value, that we did not observe ourselves.  Whenever we were narrowing in on a property, he would do detailed research for us, so that we would know what range of price was reasonable, and then upon our request, he would submit our offer. 

After almost 5 months of house hunting, we expanded our search area, and soon after, we found a home in the Avenues.  Our Exclusive Buyer's Agent did a terrific job of negotiating and we got the home for $12,600 less than asking price.  We really believe that our agent wanted the best possible deal for us. 

The communication level with our EBA has been beyond excellent.  If you text, phone, or email him, he gets it right away, and gets back to you quickly.  Although it was not the norm, we did have a few late night phone calls with him when we had an offer pending, or something critical to resolve. His level of service was so high that we felt like his only clients.

One of the best things that our EBA did for us was to have us shop our loan in such a way that we could get an “apples-to-apples” comparison, to find out which loan originator truly had the best deal.  We thought that using the bank recommended by our relocation company, and getting the 1% off the loan that went with using them, would be the best deal by far, but after researching a total of 6 different loan sources, it turns out that the worst deal was the one given us through the relocation company recommendation.

 

If you are on the fence about using an Exclusive Buyer’s Agent, we can only say that it has been an extremely rewarding experience for us, and in the future, we will only be buying homes with their services.

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

Benjamin Clark of Homebuyer Representation, Inc. in Salt Lake City, Utah, helped me find and buy my home. He was an excellent agent in all ways and I recommend him wholeheartedly to any potential home buyer.

Because he is an Exclusive Buyer's Agent, Ben was wholly dedicated to my cause throughout what turned out to be a 4-1/2 month long process.

He was enormously helpful, dedicated, persistent, knowledgeable, proactive, and consistently agreeable and pleasant.

His negotiating skills are impressive.

He makes great efforts to stay current in his field.

I enjoyed our association and greatly appreciate his work and his approach.

I am convinced that he will always put the interests of his clients first, and will never rush through a sale or fail to point out, based on his considerable experience, potential drawbacks in a property that might adversely affect its value.

Thanks to him, I am now in a lovely home that I purchased for an incredibly good price, at the end of a process that he made as smooth as humanly possible.

If you are looking for an Exclusive Buyer’s Agent of exceptional capability and honesty, you can not find a person better able to represent you than Ben.

Helen

Salt Lake City, UT

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

U.S. President Barack Obama met Thursday with the President of the National Association of Exclusive Buyer Agents to express his support for the efforts of the consumer friendly non-profit association which educates consumers about their right to equal representation in the real estate transaction.

The President just recently became aware of Exclusive Buyer Agency at a joint meeting of the U.S. Department of Housing and Urban Development and the Consumer Financial Protection Agency. He was intrigued by a section within HUD's new guidebook, which details ways in which consumers can protect themselves when buying a home and obtaining a mortgage loan.

In his remarks, he stated that Exclusive Buyer Agency, or hiring a real estate company that will represent only you as a buyer, "just makes sense."

"Now, let me be clear..." he said. "I've bought and sold a number of homes over the years, but I've never heard of Exclusive Buyer Agency. Being guaranteed in writing, up-front, that my agent would not ask me to limit my level of representation... ever... regardless of the home I wanted to buy... I didn't know that type of real estate brokerage existed."

When asked what he thought about the growing trend of buyers to seek out and hire Exclusive Buyer's Agents to represent them in their real estate transactions he said, "These are the types of change we hope to hear about in the real estate and financial sectors. I congratulate the National Association of Exclusive Buyer Agency and its members for all they do to educate consumers, and to protect consumers throughout the home buying process. From NAEBA, consumers can get clear information they can understand about the home buying process."

The head of the Consumer Financial Protection Agency, speaking at a press conference in Washington last Monday, also gave his endorsement. "Exclusive Buyer Agency levels the playing field in the real estate transaction. Sellers usually have an agent on their side of the transaction. Now Buyers can have equal representation."

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

 

Full Disclosure:

THIS ARTICLE IS AN APRIL FOOLS JOKE! (Except the part about buyers of real estate being able to hire agents who will only work for them and not against them. That part is true!)

Exclusive Buyer Agents:

1. Do not list homes or represent sellers
   
2. Work for real estate companies that take no listings
3. Work solely for the buyer
4. Remain loyal to the homebuyer throughout the transaction
   
5. Avoid conflicts of interest inherent in the traditional seller-oriented purchase transaction
6. Never represent the seller in a real estate transaction
7. Are less than 1/2 of 1% of all real estate firms nationwide
8. Offer a unique relationship of trust to real estate buyers
9. Offer a higher degree of loyalty to a buyer than an agent who also works on behalf of the Seller
10. Do not practice dual-agency
11. Are 100% loyal to home buyers 100% of the time
12. Will show buyers any listings, from any company
13. Will show buyers For Sale By Owners, foreclosures, bank owned homes, etc.
    
14. Assist buyers in property evaluation
15. Point out negative, as well as positive aspects of properties and terms
16. Negotiate and advocate for the buyer's best interest without restriction
17. Provide data on comparable sales
18. Assist buyers in formulating an offering price
    
19. Give today's home-buying consumers the level of service they deserve and are increasingly demanding
20. Can help you select other professionals who will be involved in your transaction. Professionals who will also work on your behalf.
21. Will keep buyers' confidential information private
    
22. Will tell buyers what they learn about the sellers and their motivations / bottom line
23. Guarantee buyers undivided loyalty
24. Will not try to change their relationship to "dual agency", "transactional agent", "facilitator", or any other form of limited agency.
    
25. Believe that home buyers have the same full and equal rights as sellers in any real estate transaction

Points taken from a Press Release issued by the National Association of Exclusive Buyer Agents on December 14, 2009

Buying a home in the near future? Get an Agent on YOUR side! Get an Exclusive Buyer's Agent!

 

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

 

 

 

 

 

 

The Smartest Way to Buy a Home

Lifetime Channel's "The Balancing Act" with Beth Troutman

Get an Agent on YOUR side!

Get an Exclusive Buyer's Agent!

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and sell you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

When you use an Exclusive Buyers Agent, they are not biased in their opinion of which properties they want you to view or buy. Our Exclusive Buyer's Agent was very willing to show us any property that we wanted to see.

He went the extra mile and beyond to meet our needs and wants in a home. He worked in every way to save us money. He helped us see down payment and closing cost options we would not have known about without his help. He took care of all the paperwork and even ran documents to our places of employment during negotiations.

He was always pleasant and enjoyable to work with, even during what could have been stressful negotiations. He definitely told us of things that we were able to negotiate on... things we wouldn't have been aware of. When the Seller became difficult (this was a short sale), I was very glad we had an agent who had our best interests in mind.

We heard about Exclusive Buyer's Agents through friends who had worked with an Exclusive Buyer's Agent and had a great experience!

Petruzzi Family - New Homeowners - Salt Lake County

 

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and sell you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Newly revised for 2010, HUD's latest publication related to buying a home is titled, "Shopping for Your Home Loan: HUD's Settlement Cost Booklet." It is a must-read for anyone who will be buying a home in 2010 (or beyond).

In spite of the title, the booklet doesn't just contain information on how to shop for a home loan using new forms and an explanation of the settlement costs involved in a real estate transaction. The guide also contains valuable information on a variety of other topics related to purchasing a home. (It's a whopping 4 Megabyte download!)

Massive reforms in the real estate and mortgage industries took place in 2009. Many of these major changes take effect on January 1, 2010. There are a lot of changes that affect home buyers, and this guide will make it apparent that the way to buy a home has changed. 

On page 6, it explains the role of a real estate agent or broker, making clear that "although... agents and brokers provide helpful advice, they may legally be representing the interests of the seller and not yours." (Emphasis Added)

It goes on to say, "It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an 'exclusive buyer’s agent', who will be working for you." (Emphasis is included in the guide itself, not added)

The National Association of Exclusive Buyer Agents (NAEBA) has issued a press release related to this news. To read it, click here.

To download the new guide, simply click on the image of the booklet above, or click here.

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and sell you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Here is a nice clip from CNN that covers the many conflicts of interest that can exist if you don't make sure the agent you hire will work only for you.

Section B of Page 2 of the Good Faith Estimate (GFE) has 9 parts. Let's go through them.

Item 3 will be a list of required services that the lender will select. These are services necessary in order to complete your transaction. These charges are subject to a 10% tolerance at settlement, meaning that they may be up to 10% higher (but ONLY 10% higher) at settlement.

It is my understanding that the TOTAL of all items listed in these categories is subject to a 10% difference at closing. In other words, an individual item may in fact cost more than 10% more at settlement, but if another item or items from that section cost less than they were quoted, and the total costs for all items in that section still fit within the 10% tolerance, it can be allowed.

The good news is that lenders who want to be the most competitive may begin to shop around themselves for lower cost providers for these services, in order to keep the total costs they quote down as low as possible, making them look like a better option in a comparison.

Item 4, Title Service and Lender's Title Insurance is a total of ALL title charges except Government Recording charges (which are listed in Item 7). This item is also subject to a 10% cap at settlement, but only if the lender selects the title company or if you select a title company identified by the lender. If you choose your own title company, (not a company identified by the lender) there is no cap on the amount you may be charged at settlement. (Of course, you are most likely to select a company that will cost you less at settlment, but should you choose a more expensive company, the lender cannot be held to the estimate they quote you for using a lender identified company.)

Item 5 is the cost of Owner's Title Insurance. In some states (including Utah) this is most often paid for by the Seller. Even in such an instance, this fee will be listed on the Good Faith Estimate (GFE). Just remember that if this is true in your transaction, you may be able to deduct this amount from your total loan costs for the purposes of determining the cash you need to close the loan.

This item can also increase up to 10%, but once again, only if you (or the Seller) use a lender identified company. Otherwise there is no cap.

Item 6 are the required services that you can shop for. These are services that may be necessary for your transaction. These may include such things as:

• Pest Inspection
• Home Warranty
• Survey
• etc.

These are just examples and are only subject to a 10% tolerance if you use lender identified companies.

Item 7 are the total of Government Recording Charges. These may also increase up to 10% at Settlement.

Item 8 are Transfer Taxes. Fortunately, in Utah, we don't have these. There are some states that do. If your transaction requires payment of a Transfer Tax, there is ZERO Tolerance on this item. It must be the figure you will be charged at settlement.

Item 9 explains the initial costs of setting up your escrow account. (These are your deposits into the account to cover property tax and insurance disbursements.) These are not subject to a cap, as the account will simply need to have enough money in it to pay such disbursements when the time comes. Still, most lenders should be able to get this figure pretty close to what it will be by estimating which month of the year you are likely to close in and the lender's own requirements for escrow account reserves.

Item 10 is the daily interest charge for your loan. Although the TOTAL amount listed here is not subject to any tolerance cap (because it will depend on which day of the month you close whether there are 0 or 30 days of interest charged) the daily amount of interest you will be charged cannot change (as it is a factor of your interest rate).

Item 11 is the cost of Homeowner's Insurance. A borrower usually pays a full year of premium up-front. This item is not subject to a 10% cap, as the borrower is able to select their own insurance and coverage level. (Coverage level must be adequate to protect the collateral for the loan, and usually is subject to approval by the lender.)

 

Page 3 of the new Good Faith Estimate (GFE) form contains Instructions, an optional Trade-Off table, and a Shopping Chart, as well as a disclosure that your loan may be sold after settlement. We'll cover page 3 next week.

 

 

Page 2 of the new Good Faith Estimate (GFE) will look significantly different from Good Faith Estimates of the past.

Section A has 2 parts.

Item 1 is the origination charge, or what the lender is charging you for the loan. This number includes ALL lender fees, combined into one figure. These fees include all the items one used to see listed on Good Fath Estimates as separate line items under such names as:

• Application Fee
• Origination Fee
• Processing Fee
• Underwriting Fee
• Document Preparation Fee
• Administration Fee
• Wire Transfer Fee
• etc.

It may also will include any Yield Spread Premium (YSP), or money that a broker may collect as profit on the back end of your loan transaction. (If there is a Yield Spread Premium and it is not disclosed in Item 1, it will be disclosed in Item 2.)

These will ALL now be shown as one single fee, "Our Origination Charge", or basically, all monies paid to the lender and/or broker in order to obtain the loan.

Item 2 discloses your credit or charge for the specific interest rate quoted. What this table shows is that you, as a borrower, may have had an option to select either a higher or a lower interest rate from the lender's rate sheet.

If you were eligible for a lower rate than you have been quoted, or if there was a credit for the rate selected, that credit will be disclosed here in the second box.

If it will cost money in order to obtain the rate quoted (formerly known as "points") that charge will be shown here in the third box. 

If the lender may also choose to select the first box disclosing only that the credit or charge for the interest rate they are quoting you has already been included in (either added to or subtracted from) the origination charge quoted above in item 1. If this box is checked, you may not know the exact amount of the credit or charge, but it shouldn't matter too much as it will all be included in the Total Adjusted Origination Charges in Section A, the total up-front costs to obtain that loan. If this box is checked, however, you may want to ask the lender if you would have qualified for a better rate.

 

Section A is pretty straightforward. Now on to Section B.

 

 

The bottom half of page 1 of the Good Faith Estimate (GFE) form begins with a Summary of your Loan Section. This is where a lot of disclosures regarding the loan will be made.

• What is the initial loan amount?
• What is the initial interest rate?
• What will your initial monthly payment be? (Principal and Interest, and any mortgage insurance if applicable. Taxes and homeowner's insurance are not included here, but may be required to be paid as part of your monthly payment.)
• Can your interest rate rise? If so, how much?
• Can your loan balance rise? If so, how much?
• Can your monthly payment rise? (Principal and Interest, and any mortgage insurance. Taxes and homeowner's insurance excluded.) If so, how high could it go?
• Does your loan have a pre-payment penalty? If so, how high could that be?
• Does the loan have a balloon payment? If so, how much and when is it due?

 

Some lenders require an escrow account. This section will disclose if an escrow account is required or not and reiterate your base monthly payment amount. Remember that if an escrow account is not required, you will be responsible to keep current all taxes, insurance and other property related charges. Even when one is not required, some borrowers choose to have one set up anyway.

In the event that an escrow account is not required, some lenders may offer an incentive to establish an escrow account anyway. Others may actually assess a penalty or fee in the event you choose not to establish an escrow account, even if not required by the terms of the loan. This penalty will appear as part of the total origination charge and/or will be reflected in the interest rate you are quoted and is said to help cover the costs of monitoring that the taxes and insurance on the property are being kept current by the borrower.

 

 

Finally, at the bottom you will see a summary of all Estimated Settlement Charges. These are broken down into 2 sections: Adjusted Origination Charges (All LOAN Costs) and Charges for All Other Settlement Services (All other Costs to close). Both are broken down on the next page of the Good Faith Estimate (GFE) which we'll examine next.

 

Page 2 of the new Good Faith Estimate (GFE) is where you will see obvious changes from Good Faith Estimates of the past.

 

 

 

 

Let's examine the top half of Page 1 of the new Good Faith Estimate (GFE) form.

One of the first changes you will notice about the Good Faith Estimate form is that it now asks for the Loan Originator's email address.

It also asks for a Property Address. Remember, without a property address (the one the borrower intends to get the loan for), the Good Faith Estimate is non-binding, meaning the lender (or loan originator) is not able to be held to fees and rates quoted. However, prior to closing, a Good Faith Estimate will all the required information on it must be completed. This must occur at least 3 banking days prior to settlement.

The next section of Page 1 of the Good Faith Estimate form explains the purpose of the GFE and explains that a borrower can shop for the best loan. It also mentions that the GFE contains a "shopping chart" on page 3 of the form, which we will cover when we get there.

Next is a section explaining 4 important dates relating to the Good Faith Estimate and the loan.

1. The interest rate quoted on the Good Faith Estimate (GFE) has an expiration date. Pay attention to this date. If you have not locked your interest rate it will likely usually only be for the day the Good Faith Estimate is issued. It's possible that some lenders may even put an hour of day when the rate quoted expires.
   
   In this event, note that in addition to the interest rate being able to change, some of the other fees may change until you lock your interest rate. Once you lock your interest rate, if anything has changed, the lender will provide you with yet another Good Faith Estimate (GFE) outlining the rate, fees, payment and other specific loan terms. Make sure that item 1 on the new Good Faith Estimate (GFE) now shows the date on which your rate lock will expire.
   
2. There is also an expiration date for the estimate of all other settlement charges quoted by the lender. Once again, make sure once you have locked your interest rate that this date will not arrive before your settlement date does.
   
3. Item 3 explains the length of your interest rate lock. The reason this is important, even if you have not yet locked your interest rate is because the shorter the rate lock period, the lower interest rate is available to the lender (and to you). Keep this in mind as you compare offerings from lenders and as you evaluate your needs. It may not be the best idea to choose a lender based on their slightly lower interest rate quoted, if you will need a rate lock for 60 days and they have only quoted a 30 day lock period.
   
4. You will need to lock your interest rate before the closing date. This is so the lender can finalize your loan package and prepare the documents necessary for your closing. Each lender will specify the minimum number of days they will need to carry out the rest of the process once you have locked your loan.

Continue on for an explanation of the rest of the new Good Faith Estimate (GFE) form.

 

 

 

Due to RESPA Reform, as of January 1, 2010, lenders are required to use a new, uniform, Good Faith Estimate (GFE) form. This new form creates additional disclosure and transparency about the loan product being offered as well as the costs to the borrower. The Good Faith Estimate (GFE) form is 3 pages in length. All lenders will use the same form. This was not true prior to January 1, 2010.

Once a borrower has provided all the information necessary for a lender or broker to complete a Good Faith Estimate (GFE), the loan originator has 3 business days to deliver a Good Faith Estimate to the borrower. It can be delivered via email if the borrower consents.

Consumers will be able to use the new Good Faith Estimate (GFE) form to more easily compare loan proposals from various lenders.

The new Good Faith Estimate (GFE) form is now more binding on the lender. When I say "more binding," I mean that it IS binding with a few exceptions:

• Some fees quoted are 100% binding on the lender if certain conditions are met.
• Some fees quoted are subject to "tolerance levels" (can change up to 10% if certain conditions are met)
• Some fees are not subject to any cap in the amount they can differ from what is quoted on the Good Faith Estimate (GFE) form.
  

We will go over, in detail, which fees fall into which category as we go through the Good Faith Estimate (GFE) form. The fees which are not subject to any tolerance cap are usually those where the borrower chooses to use a service not required to close the transaction, or uses a company, for a required service,  other than a company identified by the lender (from which they derived their estimated cost). If the borrower selects one of the companies identified by the lender, or if the lender selects the company for a required service, the lender is bound to the figures quoted with up to a 10% tolerance.

There are 6 pieces of information that have to be on the Good Faith Estimate (GFE) in order for it to be binding on the lender or mortgage broker. They are:

1. Borrower's Name
2. Social Security Number
3. Gross Monthly Income
4. Property Address
5. Estimated Property Value
6. Loan Amount

If any of these pieces of information change during the transaction, the Good Faith Estimate (GFE) is no longer binding and the Lender or Broker will then issue a new Good Faith Estimate within 3 Business days. Anytime a new Good Faith Estimate is prepared, the borrower cannot close on that transaction for another 3 business days after receipt of the new Good Faith Estimate (GFE) form.

The sections, and therefore the numbers quoted, on the new Good Faith Estimate (GFE) form now correspond to identically numbered sections on the Settlement Statement (HUD1 or HUD1A) that the borrower sees at closing.

 

Let's examine these forms, beginning with the Good Faith Estimate (GFE) form, page 1:

 

 

Mortgage shopping will soon be a lot less complicated.

RESPA Reform takes effect on January 1, 2010. While still not perfect, the changes do simplify the ability to compare loan offerings between lenders. The goal was to simplify and improve disclosure requirements for mortgage settlement costs under RESPA. My analysis: Mission Accomplished

Here are some key highlights for borrowers:

1. The new Good Faith Estimate (GFE) and the New Settlement Statement (HUD1 or HUD1A) now correspond to one another. In the past, there was no direct correllation between line items, making it difficult for a consumer to know whether or not undisclosed junk fees were being charged at closing.
2. Instead of breaking loan costs down into multiple line items, now, all costs being charged by the lender will be compiled into one total fee.
3. Additional information about the loan (Is there a pre-payment penalty? Can this loan Adjust? etc.) is required to be disclosed on the Good Faith Estimate, creating more transparency about the loan.
4. Lenders will be required to deliver on the Good Faith Estimate as quoted (NOTE: some items have allowable tolerances for change).

 

Here are some more changes and an overview of the new forms.

 

You will be better able to understand an compare loan proposals from different lenders if you have an agent who understands the process. Your best bet is to hire an Exclusive Buyers Agent who will work only on your side of the transaction. Overall the reforms will make it easier for the average borrower to comparison shop for a mortgage loan.

As advocates for the Home BUYER, one of the services we offer our clients is to help them evaluate lenders and loan options using our TOTAL Cost of the Loan^SM system.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

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