Purchase Contract 9/2023

SECTION 2 - FINANCING

2a.

LINES 69 Pre qualification. The Pre-Qualification Form is now required to be submitted in conjunction with the Residential Resale Real Estate Purchase Contract at the time of offer.

2b.

LINES 70-75 If Buyer does not deliver a notice of an unfulfilled loan contingency to the Seller or the escrow company within three days prior to close of escrow, the Buyer must either: (i) sign all loan documents; or (ii) deliver to Seller or Escrow Company notice of loan approval without PTD conditions AND date(s) of receipt of Closing Disclosure(s) from Lender; or (iii) deliver to Seller or Escrow Company notice of inability to obtain loan approval without PTD conditions. LINES 76-82 Unfulfilled Loan Contingency. The Contract shall be cancelled and the Buyer entitled to a refund of Earnest Money, if after a diligent and good faith effort, the Buyer is unable to obtain loan approval without PTD conditions no later than 3 days prior to COE. If notice is not given, Seller may issue a cure notice. LINES 83-86 Interest Rate/Necessary Funds. New paragraph wherein Buyer agrees that if he cannot obtain loan approval due to failure to lock the interest rate and “points” with the lender during the inspection period or failure to have the down payment or other funds due to obtain loan approval without conditions and close the transaction is not an unfilled loan contingency. LINES 87-89 Loan Status Update (LSU). The Buyer MUST deliver an LSU to the Seller within five (5) days after Contract acceptance. To Broker and Seller upon request. LINES 90-92 Loan Application. Requires Buyer to provide the lender with the “Buyer’s name, income, social security number, premises address, estimate of value of the premises, and mortgage loan amount sought” within three days after Contract acceptance.

2c.

2d.

2e.

2f.

2g.

LINES 93-96 Loan Processing During Escrow. Buyer has to notify the Seller within ten (10) days that they intend to work with one (1) lender. 10 days after receipt of the LE notice to Lender of intent to proceed.

2h.

LINES 97-98 Type of Financing. More choices.

2i.

LINES 99 Loan Costs. States Buyer to pay for all costs for obtaining the loan unless otherwise provided for in the Contract. LINES 100-102 Seller Concessions. Seller concessions are a prevalent loan condition. The concessions, if any, are specifically defined as the maximum amount that the Seller agrees to pay for Buyer’s loan costs, including impounds and Buyers title/escrow closing costs, recording fees*. (PMI Insurance is considered a loan cost. Home Warranty, Inspection fees and HOA fees are examples of items not considered loan. HO insurance only to loan costs, impounds and title escrow - NO PREPAIDS

2j.

2k.

LINES 103-106 Changes. Buyers must notify the Seller of any changes in the loan described in the Pre-Qualified Form attached to the Contract or the LSU provided within ten (10) days after acceptance.

2l.

LINES 107-110 Appraisal Contingency. The premises must appraise for at least the PURCHASE price and if it fails to appraise for the purchase price in ANY APPRAISAL REQUIRED BY THE LENDER, the Buyer has five (5) days to cancel and receive a refund of their earnest money. LINES 111-114 Appraisal Fee. Appraisal fee to be paid by Buyer/Seller/other and appraisal fees may or may not be included in the Seller concessions as indicated in line 112. Any required inspection costs or updated appraisal prior to COE will be at Buyer’s expense.

2m.

*and if applicable, VA Loans costs not permitted to be paid by Buyer