Hello confused Fremont 94536 home buyer,

Majority of the time, (per CAR contract, California Association of Realtor) the all contingency removal time is 17 days, but it’s a negotiable item. CAR form does have a blank line for other options besides 17 days.

Buyer should remove contingency as the time line is defined in the contract. As I already mentioned earlier, even if the loan documents are signed, and some last minute conditions may come up that buyer’s can satisfy those PFD, prior to funding conditions, loan may not fund and escrow may not close.

All buyers don’t necessarily get the loan document within 17 days, but they remove
all contingency within 17 days of acceptance of the contract.(Kind of industry practice)

Good luck with your home buying process

Charo Bhatt
510-381-2105
CharoBhatt@gmail.com http://www.InstantHomeValue.info

In fact, lending guidelines have been so tight that the recommendation is that buyers should not release any contingencies until they have recieved their loan documents.

--- how long does this take ? do ppl get their loan docs within 17 days allotted to remove contingencies ?

Hello confused Fremont 94536 home buyer,

Good to meet you here on Trulia again.

I am just going to assume… you meant loan side meaning buyer’s side…

Even if a buyer’s loan is pre-approved and appraisal is at the purchase price per the contract, an escrow may not close for the following reasons
• All the pre-approvals have some conditions
• Buyer looses a job at the 11th hour
• Prior to documents conditions not satisfied
• Prior to funding conditions may not be satisfied
• Buyers withdraws funds from credit cards
• After the final loan approval, buyers incur additional debts which will bring the debt to
income ratio too high.
• Preliminary Title report has some issues
• Buyers liens (i.e. judgments, child support etc.) found at the time of closing and buyers don’t
have funds to pay that off.

Hope you have a confident buyer’s agent helping you with your transaction/escrow

Good luck to you,

CharoBhatt
510-381-2105
CharoBhatt@gmail.com http://www.InstantHomeValue.info

Confused buyer,
It is a very good question.
I think will be a real estate pro, by the time you complete your home purchase :)
In real estate we always say "Its not done till it closes". So anything can go wrong before
the closing can happen. Its hard to write in detail without knowing the complete details on the buyer.

Harpal Harika
Realtor

Confused Buyer,
I wish it were that simple! Pre-approvals, if done correctly (run through the automated underwriting systems of either Fannie Mae or Freddie Mac) generally are good, but issues like gifts, nationality, time in the country, reserves, job history verification, condo approval and of course the dreaded MI (Mortgage Insurance) company can all have an impact on the final approval. In fact, lending guidelines have been so tight that the recommendation is that buyers should not release any contingencies until they have recieved their loan documents. The uncertainty comes from the near paralysis lenders face as they become unsure whether the loan they are making meets all guidelines and condtions such that the loan will be saleable.
It is not easy for lenders today and in many cases as many as 2-3 different underwriters or their managers will review loans to ensure they meet those stringent guidelines. It would probably help if the guidelines weren't such a moving target, with new rules and loan parameters being developed almost daily.
Best of luck and let me know how I can help.

Confused Buyer

At that point, you've gone over the highest hurdles....but you're not out of the woods yet.

I'll give you two examples of what underwriters do a day or so before funding:

EXAMPLE 1: Verification of employment. The day before we were supposed to fund the loan, a new wrench was thrown our way. The loan underwriter wanted a more recent verification of employment from my buyer's employer. it became challenging because the number they were calling had one of those confusing menus of press here, press that....

Fortunately, my buyer was able to get through to someone higher up who interceded on her behalf.

EXAMPLE 2. Verification of credit. On one of my listings, we were about to close escrow but it was held up for a few days. When pressed for an answer, the buyer's agent said that her buyer was so happy about getting a house that he took off to Las Vegas to celebrate, and charged up a storm. Those new charges changed his ratios, and his loan was denied.

So whatever you do, don't buy any big ticket items. Don't buy/charge a car, new furniture, new appliances. Wait until AFTER you close escrow before you run up your bills that you worked so hard to pay off to qualify for a loan.

Good luck!

Only until you have full underwriting approval can you be sure the deal is in the bag. With lenders changing guidelines all the time, we are seeing eleventh hour conditions coming out prior to funding. However, if you were completely honest in your loan application, didn't mistakenly over-estimate your overall income and assets you should be okay. Especially since the appraisal came in with an adequate value. If the property is a member of an HOA, they may require a condo cert or other information regarding the health of the association. A few items in an HOA development / condominium zoned development: low owner occupancy rates (over 49% rentals), high delinquency on HOA dues and/or litigation involving the HOA.

If Wells Fargo does not provide full loan approval then you can submit with another investor/bank if you must. However, please be aware that if were pursuing a conventional loan with Wells then you will have to get another appraisal done per the new appraisal HVCC guidelines. But if you want the house it will be worth it in the end.

Best,
Tara

Tara Steinke
Residential Sales and Appraisal
San Diego
619-384-6014
SDRealtor.Tara@gmail.com