New property Disclaimer

As of July 1st there's a new property disclaimer/disclosure form in the state of Virginia. This form replaces the old forms and has three main changes.

First of all, you must indicate whether or not they are aware of whether the subject property is in a defined historic area.  This would potentially make the property subject to many additional restrictions regarding how the property is used, how it is remodeled, etc. The form instructs potential purchasers to do due diligence to research this for themselves.

Secondly, the owner is representing that there are no enforcement actions pending against the property that effect the safe, decent and sanitary living conditions of the property.

And thirdly a notice that the owner makes no representations as to the whether the property encompasses any Resource Protection Areas pursuant to the Chesapeake Bay Preservation Act. Here again, purchasers are advised to do their own due diligence.

If your home was on the market as of July 1st, it is affected by this change.  The older disclaimer/disclosure forms are no longer valid. So if your house is currently listed and the agent hasn't contacted you about getting the new form signed, give them a call!

Choosing A Lender

99% of deals that fall apart do so because of financing!

Don't let anyone tell you differently!

That's why it's critically important that buyers choose a reputable lender. Yes, it's important to the seller and their agent because they want to be sure they'll get to closing and get a check.  But it's also important to you. Generally the financing falls apart at the last minute.  If you're a first time home buyer you've already given notice to your landlord.  Odds are you're mostly packed. If you already own a home and have sold yours it gets even more complicated!

So, if you're thinking about buying a home, take a few minutes now to think about choosing your lender. The best lender is not necessarily the guy who promises you the best rate. There are plenty of shady people who will promise you the world to get you to sign on and then well into the process will inform you that you don't qualify for that particular program. I had a client last year who was initially working with a lender who promised her an incredibly low interest rate.  (If it sounds too good to be true it probably is!) Turns out there was no such rate. In fact, the actual rate turned out to be almost 3 percent higher! He'd been lying from day one and he almost cost her the deal on the house she was buying.

Lately I've seen a lender who approved a client for a purchase price up to a specific amount.  The property the client purchased was actually below that amount. However, the lender then informed the parties that the home had to appraise well above the agreed upon purchase price in order for the loan to be approved by underwriting. In this particular instance it worked out. But that's a very, very risky proposition.

There are many more horror stories about loans that didn't happen because of a lender who was over-promising and under-delivering. So do your homework before choosing your lender. There are also a lot of wonderful, ethical lenders out there. You just have to find one! There are a number of ways to do that.

Ask around and find out who other people have used.  Ask your real estate agent who's good. A local lender, as opposed to someone in another state, can definitely be an advantage. For one thing, if something goes wrong you know where to get your hands on them!  And a local lender doesn't last long if they have a reputation for steering people wrong, giving unrealistic estimates and/or not being able to get the deal closed. In addition to real estate agents, settlement companies have contact with a lot of lenders and usually know who's good and who's likely to cause last minute heartache.

And, if you're a seller, when an offer is presented, ask your REALTOR what they know about the lender and how strong the letter is. But be aware that a letter can sound wonderful and not be worth the paper it's written on!

If you're looking for a good lender in our area, visit my web page, http://www.JulieEmery.com and click on Local Partners. You'll see a list of lenders there that have a successful track record so you know when they tell you that you really can afford the house of your dreams, it's going to work!