North Carolina Offer To Purchase Changing January 2011---Loan Conditons

One of the biggest changes I see in the new North Carolina Offer to Purchase is goign to be the removal of the loan conditions. I feel and beleive this is a good thing. Currently, under the existing contract, the buyer agrees to apply for loan by a certain time frame within acceptance of the contract. If the interest rate goes up higher than it was initally discolsed on the offer to purchase, the buyer cannot get finaicning do to some reason they could still walk away form the contract with no loss of money within that time period.

Now, the new offer to purchase removes all of these time lines. It becomes part of the due diligence time period. This is a good thing for both the buyer and the seller.

For the buyer, I will be asking more now than ever before to get a pre-approval letter and not a pre-qualified letter. The difference will be that buyers will be talking with their mortgage broker up front prior to making an offer. They should be asking them what the monthly payment will be with taxes and insurance. Verifing that the information they provided on the applciation is correct. The buyers now will have a monetary stake in ensuring that all this is in place upfront.

For the seller, it is going to give them an added peace of mind knowing that the buyers should have done their homework upfront in regrds to loan approval and conditions. There should be more solid of an offer on the houses. Less risk of the buyer walking away for loan conditions.

This change will help sellers and buyers close more transactions and will keep Real Estate Agents involved more in the transaction than ever before.

Dave diCecco
Realtor/Broker
www.davedicecco.com