Information for Home Buyers Who Are Contracting to Purchase a Home
If a mortgage loan is needed to purchase the Property, a Financing Supplemental Agreement will be attached to and made a part of the Contract.
It is the responsibility of the lending institution to disclose State and Federal Regulations concerning the terms and conditions of the real estate loan for which the Buyer applies.
The provisions of the Financing Supplemental Agreement require the following:
- The Buyer must immediately make loan application, which usually means the next business day after the “Time Reference Date” of the Contract.
- The Buyer must pay all fees required by lender, including appraisal and credit report fees, at the time of application and instruct the lender to process the loan immediately.
- The Buyer shall instruct the lender to provide the Listing Broker (if requested) written confirmation that the credit report and appraisal have been ordered.
- Buyer must proceed immediately to obtain a commitment for hazard insurance to cover the Property.
- If the Buyer is not satisfied with the terms of the loan, Buyer has the option of canceling the Contract within 5 days of the “Time Reference Date” of the Contract.
Regardless of any advice that might be given by a broker or lender, failure to comply with any of the above provisions could be interpreted as the Buyer’s Breach of Contract.
The Buyer needs to be aware that there are a few “predatory lenders.” These lenders charge excessive fees or charge more interest that is required based on the Buyer’s credit history. To learn more about predatory lending, Buyer can check the Oklahoma Department of Consumer Credit web site: www.okdocc.state.ok.us.The Buyer can also check with Consumer Credit [(800) 448-4904] to determine if a mortgage broker is licensed. It is recommended that Buyer investigate the reputation and stability of the lender Buyer selects.
In the event the Buyer fulfills the Buyer’s obligations, but does not qualify for the loan applied for, the Contract becomes null and void. Upon execution of a Mutual Release by both parties, the earnest money is returned to the Buyer. However, the Buyer must pay any expenses the Buyer incurred.