New loan guidelines - the underwriter must approve inspection results!? | HarrisonburgHousingToday.com :: Market Updates, Analysis and Commentary on Harrisonburg and Rockingham County Real Estate


New loan guidelines - the underwriter must approve inspection results!?
By Scott Rogers • November 24, 2008
Here is some interesting news that Jon Ischinger (Wells Fargo, Harrisonburg) shared with me last week... If a sales contract is contingent upon a well inspection, septic inspection or termite inspection, the loan underwriter must be privy to any issues, and must approve how the buyer and seller choose to address those issues. And this is on all new FHA and conventional loans! It is my understanding from talking to Jon that this won't change the loan process drastically, but it will make things slower, and may make things more problematic if there are any issues with the termite, well or septic inspections. As Jon notes, "In the past you could have worked something out with the borrower/seller and it would happen very quickly, outside of the lender's scope - now, if there is any inspection mentioned in the purchase contract, we have to see it and send it to underwriting. If any maintenance is required, it will need to be addressed and re-inspected and then that documentation will have to be reviewed." I'm curious to see how this plays out in a real transaction --- but I'm not too surprised to see yet another tightening on the loan process as lenders become more conservative in their lending practices. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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