Anatomy of the Loan Process
October 14, 2009
Yesterday after our office meeting we were treated to a refresher course on the life of a loan application. Ephraim and Theresa of Odette Mortgage were most patient with us taking us through the “flow chart.” I will try to synopsize it here. The steps are as follows:
1) The borrower is pre-qualifed — loan agent takes verbal information from borrower and assesses, based on income and debt, what the borrower is qualified to borrow. Loan officer gives the borrower a letter stating what he will pre-qualify him to borrow.
2) Borrower makes an offer and gets into contract on a house using the aforementioned letter.
3) The borrower must produce all of the documentation supporting what he has verbally told the loan officer. The loan officer puts this together with a copy of the contract, the title report and the appraisal and submits it to the bank’s underwriting department.
4) The underwriting department checks his “need” list against the documentation supplied and makes sure everything is acceptable. Generally there are some things that still need to be supplied, (like evidence of insurance for the home or a current pay stub) so the underwriter will stamp the loan file “approved” subject to some conditions.
5) The borrower and the loan officer work together to gather and/or fulfill these conditions.
6) Loan documents are ordered and they are sent to the Escrow company. The Escrow officer makes arrangements for the borrower to sign.
7) The Borrower signs the loan documents and the Escrow company sends the documents back to the bank.
10) The Bank looks at the loan documents one more time and then they call the “funder” (the department that sends the money).
11) The funds from the bank arrive in the Escrow company’s account and the Escrow officer gives the okay to record the Deed at the County Seat.
Viola — everybody is done and the property changes hand.
So there it is, plain and simple, right? Not so fast. There are about a gazillion things that can happen in between all of these lines but this is BASICALLY the framework for how the loan process works from start to finish.
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New Message
October 11, 2009
As seen in Reno airprt
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Price Reduction 11070 Brockway Rd., Space 77
October 10, 2009
Woodstove warms entire home.
Affordable Housing in Truckee just got a lot more affordable!! Show your clients this tidy 2 bedroom, 2 bath home with warm and wonderful woodstove and they will be ready to move right in. Located in the back of the park for the optimum of privacy and appointed with the most up to date appliances and upgrades including a pitched roof for easier winter maintenance, sheltered entryway, and 50 year hardiboard siding. Check Associated Docs in mls for loan application and park rules. Hurry, the Sellers have already relocated making this move in ready! NOW PRICED AT $56,000!!
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Truckee North Lake Tahoe September 2009 Stats
October 8, 2009
Yes, well the trend continues to move forward – our numbers are up again!! Must be fall because typically these are the months when people finally decide to make a decision on a home. Buyers finally decide that they NEED a home in the mountains before the snow falls and Sellers decide that they don’t want to maintain a home for another winter. Last month’s 84 sales of condos and single family residences ratcheted up this month to a whopping 115!! Typically this trend will continue until Thanksgiving. Again, we are seeing more REO sales than short sales this month. Distressed property sales made up 24% of the solds for this month. Here are the statistics from the Tahoe MLS. The solds from September 1 – 30, 2009:
Tahoe Donner: 26 homes, (2 REOs, 1 short sale), 2 condos
Northstar: 4 homes, 6 condos
Glenshire, Cambridge, Juniper Hill, Juniper Creek, The Meadows: 5 homes (2 REOs)
Prosser Lake Area: 6 homes (1 REO, 2 short sales)
Sierra Meadows, Ponderosa Palisades, Winter Creek: 4 homes (1 REO) 2 condos (2 short sales)
Martiswoods, Ponderosa Ranchos: 2 homes (1 short sale)
Olympic Heights: 0 residential properties
Lahontan: 1 home
Timlick: 1 condo
Old Greenwood: 1 condo
Gray’s Crossing: 1 home (short sale)
Truckee Proper: 4 homes (2 REOs, 1 short sale), 1 condo
Donner Crest: 2 homes (1 REO)
Donner Lake: 2 homes, 1 condo
Donner Summit: 3 homes (1 REO)
West shore Lake Tahoe: 13 homes (2 REOs 1 short sale), 1 condo
Tahoe City: 2 homes, 2 condos
North shore Lake Tahoe: 5 homes (2 REOs), 1 condo
Kings Beach & Tahoe Vista: 5 homes
Alpine & Squaw Valley: 5 homes (1 short sale), 4 condos
Shared Ownerships – entire region: 1 $336,000 in Northstar (1/8th share)
Mobile Homes – entire region: 1 sale in Coachland — $15,000
Condos and Homes sold over $1M in Truckee and North Lake Tahoe: 14
Highest priced home or condo sold: a $3,675,000 lakefront home located in Rubicon Bay. This 1716 square foot home was originally listed for $3,900,000 and on the market for 144 days, purchased with a conventional loan.
Lowest priced home or condo sold: $75,000 a little 2 bedroom, 1 bath home located in Floriston, CA. 84 days on the market, all cash and bank owned it was listed for $111,685. Sounds like pretty affordable housing!
The list to sell ratio on the median was 95%. In other words, the homes sold within 87% of the list price. The median list price for this period was $475,000, median sale price was $449,000.
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It’s Snowing!
October 4, 2009
For those of you who can’t wait to put your snow skis on, you will be happy to know that at this very moment the snow is falling, actually it is coming in sideways. Our peaks were snow covered this morning and Boreal has been making snow for the past 3 days that I am aware of. Our temperatures have dipped down enough hold on to the snow so get your skiis waxed up and get ready because it’s ski season is on its way!
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