• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

The Top 3 Home Buying Mistakes Buyers & Realtors Make When Securing A Mortgage

July 10, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

Purchasing a house is one thing, successfully closing escrow on a purchase mortgage loan is something else entirely. The top three mistakes home buyers and real estate agents make has nothing to do with mortgage loan financing and everything to do with the real estate purchase contract.

“Anything specified, spelled out or added to a residential real estate purchase contract becomes material and has the potential to impact the origination of the that mortgage loan.”

The top three home buying mistakes happen with the real estate purchase contract.

The top three home buyer/realtor mistakes are as follows:

1. Including the sale personal property in the residential purchase contract

Here’s why-by adding personal property to the contract including such items like a washing machine, children’s play structure, or an outdoor patio set, these things become material to the transaction and when the buyer goes to get the mortgage loan that’s when things get challenging. The mortgage company will require a bill of sale. The bill of sale will have to be a signed document between the buyer and the seller stating the additional personal property included in the sale has no dollar value.  When the mortgage lender sells the loan in the secondary market, an investor buys the loan under the promise, that the loan is collateralized by real property, not personal property.

2. Including pest reports in the residential purchase contract

Here’s why-if you are a home buyer, obtaining a pest report is always a good idea. It’s up to you and your real estate agent if you want included in the ratified purchase contract. Above all, know this….including in the contract a “request or a transfer of a pest report”, this will trigger the mortgage company to require a copy of that that the pest report. Put another way, it will need to “pass clear pest” prior to ordering loan documents. If your purchasing a home and you feel you need to purchase an additional pest report go ahead and do so. Including it in the contract will cause the mortgage company to require prior to closing escrow and the report must be free of all wood destroying pests.

3. Including a rent back term in the residential purchase contract

Here’s why- this only matters on residential primary residence purchase transactions when using mortgage loan financing to acquire the property. When you purchase a home, you expressly tell your mortgage lender, that you will occupy the home upon close of escrow. Including a rent back is fine,  to accommodate sellers, such as when the sellers are closing on the purchase of their own.

If the rent back period exceeds 30 days, this could create a hiccup with your mortgage company. This creates doubt in the eyes of the mortgage lender that the property you are purchasing is indeed your primary residence. Simply put, if you are purchasing a primary residence, using primary residence financing, then the property needs to be your owner occupied home. If your purchasing the property as an investment property, you pay a premium for that and rightfully so because the lender takes greater risk in providing that type of financing.

If you and your real estate agent can avoid these three common home buyer mistakes on the front end, your home buying process becomes much easier for you and all the other parties involved. When making an offer to purchase a home consider these three obstacles and how they should be handled. A sharp real estate agent and diligent mortgage lender can walk you through these obstacles that often times, come up.

If you are in the process of purchasing a home or would like to get preapproved to purchase a home down the road, feel free to submit an online prequalification request, see this link sonoma county loan prequalification. Avoid The Top 3 Home Buying Mistakes Buyers & Realtors Make When Securing A Mortgage.

Related Mortgage Advice from Scott Sheldon

  • your mortgage chances may be slim with this credit card
    Why your mortgage chances may be slim with this credit card

    Credit cards play an integral role in your ability to qualify for home financing. If…

  • Tips To Financing Closing Costs

    Closing fees are always an inevitable part of taking out a mortgage. Following are little-known…

  • Little lending nuances to get a mortgage
    How to figure out closing costs on a mortgage

    Closing costs are a factor you must account for consider when taking out a mortgage…

  • Why Cash Is king In Real Estate Negotiation
    Why Cash Is king In Real Estate Negotiation

    It is no surprise there is significantly more demand for housing than there is enough…

Filed Under: Mortgage Tips & Advice, Underwriting Guideline Updates

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window