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

North Carolina Offer To Purchase Changing January 2011

North Carolina has decided to make some dramatic changes to the offer to purchase contract starting with any offer written after january 1, 2011. these changes are suppossed to be for the better. However; time will tell how these changes help or hinder sellers and buyers.

North Carolina has been a state of contingencies and various dates for certain criteria to be met. It has changed to a due dillegence contract. What it basically menas for the buyer is you need to make sure that you can close on the house and ALL inspections, appraisals, and loan conditions are satisifed within the set time period you and the seller agree upon. If not, you will lose your due dillegence fee you gave ther seller upfront and possibly your earnest deposit depending on the time.

Under the new contract; the seller and buyer agree to terms on a sale price and any concessions. They have also agreed upon a set date for which the buyer has exclusive right to have ALL inspections performed, appraisals done, and any loan conditions met. if at the end fo that due dillegence period the buyer wants to walk away; they can for ANY reason. All they lose is there due dillegence fee.

However; after that period the buyer is required to put down an earnest deposit. That deposit now becomes completely NON REFUNDABLE. If for any reason the buyer backs out of the contract; they lose 100% of that money. If the seller cannot convey a clear title to the buyer though; then the money is refundable (as long as no fault of buyer home cannot close).

There are many changes to the new offer to purchase which can affect how an offer is negotiated and finalized. Make sure your Real Estate agent is aware of the changes and has explained them to you in full detail...

I will blog a series on the changes that are in the new offer to purchae contract.

Dave diCecco
Realtor/Broker
www.davedicecco.com