WARNING: Your Road to Home Ownership Should Start Here
For most people, mortgage financing plays a major role when purchasing a home. In recent years, we’ve seen a wave of industry regulation and heightened requirements for borrowers (e.g., the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Consumer Financial Protection Bureau). For most buyers, obtaining a mortgage now will require better credit and a greater documented review before determining if a loan will be available. In addition to a reduction in mortgage products and elevated standards for qualifying, other major changes in the mortgage application process were made because of the “Ability to Repay” rules that were enacted involving mortgage approval that included: 1. Review documented current and historical income for 2 years 2. Determine stability/sustainability of income, especially for self-employed 3. Verify cash needed to close, including its source
4. Evaluate credit history from credit score, derogatory items and public records 5. Verify borrower documents from 3 rd party sources, such as the IRS, when possible
Part of the Coldwell Banker Howard Perry and Walston (“HPW” ) commitment to our buyer clients is to ensure that buyers have the most “ successful p urchase” possible. That means a purchase that is on time, with the fewest hassles and the best financial terms. To do so, special attention must be paid to the mortgage process and should begin with a mortgage pre-approval from an honest and reliable lender who has a proven track record. No one wants to waste money or time pursuing a property that simply cannot be purchased because a needed mortgage is not available. Further, buyers should have the strategic advantages they obtain in negotiating a purchase contract that result from their ability to confidently and reliably demonstrate to a seller that they can really get the loan they need. To help accomplish our commitment to our clients, HPW has partnered with a prominent, financially stable mortgage bank and together we operate HPW Towne Mortgage. With local underwriting and management that is conveniently available to you, HPW Towne Mortgage will assure honest, well-founded evaluation of your qualifications early in the process, great service, competitive rates and an excellent on-time closing record for qualified borrowers. HPW Towne Mortgage has its headquarters in Raleigh, NC, and is an affiliated business to HPW; an Affiliated Business Arrangement Disclosure is being provided to you detailing the affiliation. Trying to regularly evaluate the practices of the many other mortgage lenders would be an impossible task for us. Because we simply are unable to help protect you from the potentially misleading or incomplete practices that sometimes occur in the national mortgage industry, we feel obliged to strongly suggest that you first obtain, before making any offers to purchase a property, a mortgage pre-approval, or, if you are already working with a lender, a “second opinion” , from HPW Towne Mortgage. HPW Towne Mortgage Lending Managers are available in each of our sales offices for your convenience. _____________________________________________________________________________________________ By signing below, I/we acknowledge that we have received this advice and that HPW shall not be responsible for difficulties, delays, costs or losses caused to us as a result of our failure to obtain advice and loan pre-approval from HPW Towne Mortgage or from my/our selection of a mortgage lender who causes such results.
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