Home Buying in 30339>Question Details

Rosebud, Home Buyer in Doraville, GA

We found a property and the sellers wants the financing period be 15 days.

Asked by Rosebud, Doraville, GA Mon Dec 27, 2010

Is this very risky? How many days should it be to be on the safe side?

Thanks so much in advance.

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Answers

31
Scott asks a good question. If you have an agent working for you as you intimate then you should be guided by them, not an open forum. If you have an agent and still feel the need to toss basic and fundamental questions out like this, then perhaps you need to find a new agent as it seems there is a lack of confidence somewhere....
Web Reference: http://www.hrmiller.com
1 vote Thank Flag Link Tue Dec 28, 2010
on the other hand, the purchase agreement should state the home sale is contigent upon you obtaining a written committment for financing. If the 15 day mark approaches and you do not have your lenders committment, you can ask for an extension, and if it is not granted, your deposit is to be returned. I have rarely seen an extension denied. You would risk losing the money you spend on a home inspection as well as your loan application fee, but your deposit would still be protected.
Usually the biggest delay is actually the appraisal. If that is done in the first week, its possible you can hit the 15 day mark, but normally I would ask for 21-24 days from loan application. One more week wont kill the seller. I would ask for 21 days, if they insist on 15 I would make sure there is an extension clause in your agreement. I would give them your loan persons contact info. Perhaps he or she could speak to them and educate them a little on the loan process and timelines.
0 votes Thank Flag Link Sun Jan 30, 2011
Wow. 15 days isa very short period of time. The quickest I have turned is 22 days, FHA ,and a local lending institution. Check with your realtor and see if he or any of his associates have any suggestions from their experience.
0 votes Thank Flag Link Sun Jan 30, 2011
You should have a minimum of 30 to 35 days unless your lender tells you differently.
0 votes Thank Flag Link Fri Jan 7, 2011
The seller is not being realistic at all, and 15 days does not allow the lender to perform their due diligence to process the loan. The appraiser must come to the property and complete their report and submit it as well as underwriting of the loan prior to issuing a mortgage commitment. This cannot be completed within 15 and the time frame should be a minimum of 30 to 35 days, unless the seller would accept a commitment with a list of contingencies noted on it. It is in everyone's best interest to allow the proper amount of time.
0 votes Thank Flag Link Fri Jan 7, 2011
While it is a question for your lender, I would tell you that it's an unreasonaby short time period and unless the Seller has multiple offers I'd simply haveyour Buyer Broker explain the facts of life to the Sellers or their agent. It's a buyers market here's our offer, take it or leave it there are more than enough homes for sale and we aren't interested in plyaing games with you. I would reccomend a 30-35 day financing contingency and I wouldn't budge from that.

Good Luck!
0 votes Thank Flag Link Fri Jan 7, 2011
This is a question best asked and answered by your lender who knows what type of loan you are using and you situation. Typically a lender wants and needs at least two weeks to get thru all the necessary paperwork.
0 votes Thank Flag Link Fri Jan 7, 2011
Rosebud-
This is really a question for your lender. You have to be able to perform during that financing period- that means you have to clear all loan conditions in 15 days which I don't see happening anywhere in the country unless you are using a hard money lender. If you fail to clear all of the loan condition sand you fail to send the seller notice you will waive your rights to terminate based on your loan and you may risk your earnest money. Do not agree to anything that you will not be able to honor. Talk with your lender let them know what's going on and see if he or she can help you find a compromise that will enable you to go forward on a home that you want without risking your earnest money and other expenses that you will incur to purchase the home. good Luck and Have Fun!
Cheers!
Caroel & Greg
0 votes Thank Flag Link Thu Jan 6, 2011
Depends on your loan, your fiduciary representatives and your own ability to follow instructions, be timely and respond as ordered.

Hank got my thumbs up - this not about anything other than you and your team...
0 votes Thank Flag Link Mon Jan 3, 2011
A 14-21 day finanicng contingency is very typical for the Atlanta market. You do need to really ask this question of your loan officer. That is the only person who can correctly answer this question for you.

Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Sun Jan 2, 2011
Lender approval can average approx. 15 -20 days. I don't see it be unreasonable . Determine with your buyers agent if there is a happy middle of road settlement between you and property owner.

If you are all ready approved should not be a problem.

YOU MIGHT be able to win an argument for fact holiday season with many vacations & holidays real estate professionals take off enjoy their family plans.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 28, 2010
Hi Rosebud, This will depend greatly on what lender you are using. Some can expedite but others take longer. In NY we tend to give the buyer up to 45 days to get their full unconditional mortgage commitment. The appraisal and underwriting period will take up the most time. So if the appraisal can be ordered and completed quickly (usually once a fully executed contract is submitted to the bank) then you should be ok. Unfortunately nobody has any power over the underwriting process, you are at their mercy. Inquire about your lenders underwriters and stress to your loan officer you need it done quickly. If they can assure you upfront that they work quick then decide if you will go with them. In NY it is not uncommon to get extensions, especially in todays market where the banks are taking longer.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Tue Dec 28, 2010
Rosebud,
This is a standard request to ask of the buyer. To get a good deal in today's market, you typically need to have your pre approval handled prior to making an offer. It protects you because a lot of times people think they can afford a certain amount and they can actually afford more, or less. The lender you chose, should know within 7 days or less if you'll be approved for the loan.

You can always try the "boil frog in water" theory and ask the seller for additional time if you need.
Best of luck,
Winter Baserva~As Featured on HGTV's House Hunters
0 votes Thank Flag Link Tue Dec 28, 2010
15 days is plenty of time. If you need assistance with finacing please let me know.
We can have the appraisal in 2 days and underwriting is 2 days.
Kevin Ramirez 404-610-9883
Loan officer
Sun Trust Mortgage.
0 votes Thank Flag Link Tue Dec 28, 2010
FYI, we are already pre-approved.
0 votes Thank Flag Link Tue Dec 28, 2010
As a Realtor, I'll love my clients to be pre-approved before wasting anyone's time.
A loan officer just told me he does not want to work for free.
0 votes Thank Flag Link Mon Dec 27, 2010
I think 15 days is long enough to determine whether you can, or cannot, get your loan. Ask your lender whether the appraisal can be finished within that length of time OR add a separate appraisal contingency page to the contract. As far as your qualifications for the loan, 15 days is a very reasonable time for the seller to keep the house off the market for you. If you can't get the loan, you really shouldn't be looking at houses anyway.
0 votes Thank Flag Link Mon Dec 27, 2010
Reasonable sellers want you to be successful in getting the mortgage but are impatient to find out if you can qualify. A lender needs 3-5 weeks to process, appraise and get thru underwriting now days due to stricter laws. Best speak to your lender and get their commitment.

Mark Lackey
Atlanta Housing Source at
Solid Source Realty, Inc.
Associate Broker
EcoBroker
Mark@AtlantaHousingSource.com
404-886-8789

Services
Home Buyers & Sellers - http://www.AtlantaHousingSource.com
Property Management – http://www.SolidSourcePM.com
0 votes Thank Flag Link Mon Dec 27, 2010
Rosebud -

Based on your earlier question regarding whether you should have an attorney review your Purchase & Sale Agreement, I thought you had an agent working on your behalf. Agents outside of a transaction where another agent is involved should not give you advise for it could be considered a violation of the REALTOR's Code of Ethics and/or tortuous interference.

Please follow your agent's advise or find another agent for whom you can have more confidence.
0 votes Thank Flag Link Mon Dec 27, 2010
Hope you already have an agent, Rosebud, but do you have a financing AND appraisal contingency? Either way, Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.SellsRealty.org
0 votes Thank Flag Link Mon Dec 27, 2010
The seller does not want to tie up the property for a lengthy time waiting on a loan approval. You are risking your earnest money if it does not work out for any reason. I do not suggest this at all without an underwritten commitment letter from your lender and an appraisal contingency. Your real estate agent should be facilitating this for you. But again .remember the seller can negotiate how they please, but you do not have to agree. It is all up to you.
0 votes Thank Flag Link Mon Dec 27, 2010
This is a common request as sellers don't want to take their home off the market without knowing it's going to close.

Check with your loan officer and counter back with whatever they recommend, but they better be able to honor it. You don't want to go in default and risk your earnest money.

In this market buyers hold the power. Unless your in a multiple offers scenario your in charge. Let them know you understand their concern then counter back with what you and your loan officer feel comfortable with.
0 votes Thank Flag Link Mon Dec 27, 2010
So what?? If they want to play hardball, play hardball... Tell them your offer and stand your ground. I truly doubt it's an absolute deal breaker one way or the other and if it is, it's the wrong house, pick another one. Really you should already be approved and know if you can get it done or not. And if you can get it done your loan officer should be able to get it done in 10 days or less...
Web Reference: http://www.morgansteam.com/
0 votes Thank Flag Link Mon Dec 27, 2010
Do you have an agent already?
0 votes Thank Flag Link Mon Dec 27, 2010
Good evening,

That is a short contigency period unless you are already pre-approved for a mortgage. There are ususally 2 time frames in a contract, one for financing and one for the appraisal. I would try to renegoniate to a 21 day period especially if you are not pre-approved.

Warm Regards,
Jill Richardson
Waterside Mortgage
NMLS#150314
404-641-1111
0 votes Thank Flag Link Mon Dec 27, 2010
Wow, you guys work 24/7? I did not expect an answer until tomorrow. :) Thanks so much.

We got an answer from our lender he said we can get it in 15 days but advice us to ask at least 20 days to be safe.
0 votes Thank Flag Link Mon Dec 27, 2010
It is not out of place.
You can negotiate based on your ability to secure a loan.
Usually 21 days. Speak with your loan officer to see the possibility of that 15 days.
0 votes Thank Flag Link Mon Dec 27, 2010
Rosebud,

Sounds like you're having a heck of a time with your home purchase!

It is best to call your loan officer to find out what timeframe they feel comfortable working in.

If you we've been pre-approved witha a "loan commitment", you should be good for collateral review in that amount of time. Collateral review being, appraisal, title, and insurance requirements.

Call me if you want a second opinion on the mortgage!

Good luck!
0 votes Thank Flag Link Mon Dec 27, 2010
Most sellers want the financing period to be as short as possible. As far as what is the safe side? The answer is that you have a financing period all the way to close date, but most sellers will not agree to that.

If you have any questions, just call at 678-613-5636; Regina Ambrose, Chapman Hall Realtors, Associate Broker
0 votes Thank Flag Link Mon Dec 27, 2010
Ask your lender. I usually get 21 days and I put down what my lender requires. Can your lender guarantee an answer in 15 days? If so, you're fine. If not then you're rolling the dice with your earnest money.
0 votes Thank Flag Link Mon Dec 27, 2010
What is your agent, loan officer and or attorney advising.....can you be certain that you will acquire financing in that period...if not, think twice.
0 votes Thank Flag Link Mon Dec 27, 2010
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