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La Crescenta Home Loan Contingencies and You

Don’t Lose Your Home over the Loan Contingency

When buying your La Crescenta Home you will want the protection of a loan contingency.

Here is How Your Loan Contingency Works:

According to the typical contract you have seven days to complete your loan application and 17 days to remove your loan contingency.  During that time you need (with your agent’s professional assistance) to get your loan approved.  It is important to note that after 17 days your contingency DOES NOT end automatically.  It only ends when you remove it in writing. The contractual obligations are pretty simple…

If you want your offer accepted

you need to do a little more work on your loan for your offer to be competitive.  Remember, you want the owner to say, “Yes!”

Steps to Get Your Offer Accepted

  • Be Certain to use a well-known, reputable mortgage broker.
  • Provide ALL your documentation to your mortgage broker, including:
    1. 2 most recent tax returns
    2. payroll information
    3. all your debt payments
    4. all your bank statements
    5. any other requested documentation
  • In your offer include:
    1. Your prequalification letter
    2. Proof of funds for down payment and closing costs
    3. Portion of your credit report that discloses your credit score

At this writing there is a high percentage of cash offers for La Crescenta homes and homes in Glendale and surrounding areas.

 This is partly due to the relatively low prices of homes. The other reason is that interest rates are so low that many investors believe they can make more money buying a house (or lots of them), fixing it up, renting it and then selling it in a couple of years.  As interest rates increase this will change. But, remember, if you buy now you get today’s lower prices and today’s lower interest rates.

This information is based upon market conditions during the last 6 months of 2013.  It is also based on the language found in the CAR Residential Purchase Agreement in use during the same period.

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