July 1st, 2011 at 11:35 pm
As most of you know, the limits for conforming loans will change on October 1, 2011, going down from $729,000 to $625,000. Any loan that does not close by September 30 will be governed by the new loan limits, with no exceptions or extensions. This change leads me to two important points. First, if you have a loan/escrow in process where the necessary loan will be conforming under the soon expiring limit, make sure to do everything possible to get that loan approved and ready as early as possible. Most loan problems, like unknown liens, etc, can be solved, but those solutions take time. So give yourself as much time as possible before September 30. Take your client to HSL as early as you can, so they can find out what problems might exist and can solve them. Remember some clients will not be able to get a loan after that date. So work early, avoid those problems and get the loan absolutely ready as early as possible.
Next, use this as an opportunity to get your hesitant buyers to move on a property. Let them understand that a loan above $625,500 will be much harder to get after October 1. Make them understand that until then, they can get much more house for their money. This change should make many of our buyers more serious and allow us to find them a house to buy immediately.
As always, let us know if you have any questions.
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