Consumer Financial Protection Bureau produced the Home Loan Toolkit to help Buyers understand the mortage process. Please view this material before shopping for a home so you can react quickly and knowledgeably:
Advice for Buyers:
- Before finding your dream home, speak to area mortgage professionals about financing options, obtain a pre-qualification from their preferred lender.
- When you are evaluating loan products and deciding on the right choice for situation, also ask for a copy of all materials that you will need to provide to the underwriters to obtain a mortgage commitment. [bank statements, copies of taxes etc..]. Prepare in advance so that you will be able to react quickly when they find their dream home. Ask the lender for their attorney list, if any.
- Consider selecting your closing Attorney before or no later than drafting the P&S. Please understand that the attorney represents both the buyer and the bank, so you must confirm that the attorney is approved to close by that lender.
- Buyers must adhere to timelines, or jeopardize deposit money
- Last minute re-negotiations could delay closings by 3-10 days or halt the transaction if the purchase price is affected and the home just met appraised value. Changes to the original purchase price can delay closings or effect mortgage commitment.
- If you request the seller perform repairs based on inspection issues, you should inspect the repairs to meet their satisfaction at least 10 days before closing to avoid any delays.
- If there are walk thru issues, they should be resolved between the buyer and seller whenever possible. If that isn’t possible, the buyer’s lender / attorney should be contacted immediately.
- Read the “Your Home Loan Toolkit” found at AtHomeInTheBerkshires.com/homeloan
Typical timelines in Berkshire County are:
– Note: Termination date is the date found in the Purchase and Sale agreement whereby a seller and buyer need to accept all terms and agree to the sale.
|Mortgage and Insurance Application dates||7 days after termination date|
|Inspection Contingency Dates||15 days after termination date|
|Insurance / Mortgage Contingency Dates||45 days after termination date|
|Closing||60 days after termination date|
* If a buyer needs more time? Extend these dates or contact the lender for specific instructions. Please note that Inspection issues, appraisal issues, failure by the buyer or seller to provide timely documentation or perform, title issues, pay-off issues all may delay this timeline.
Developed with: Academy Mortgage, Adams Community Bank, Berkshire Bank, Greylock Federal Credit Union, Lee Bank, MountainOne Bank, Salisbury Bank, and Trustco Bank.