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Rates Improve Marginally; No “Personal Property” In Purchase Contracts; Addendum

30 Year Fixed Rate Loans at a Cost of One Point: 3.5%*

Rates improved slightly today after weekly jobless claims came out worse (higher) than expected. This negative news signaled more weakness for the economy and again shifted investors from stocks to bonds.

Mortgage lenders only want to finance the purchase of real estate, not personal property. We frequently get real estate purchase contracts that include personal property such as furniture, washers and dryers, refrigerators, etc.

When lenders see these clauses they request a contract addendum that says something like “no personal property to be included in the purchase contract or purchase price”. They also then require appraisers to state that the personal property had no affect on the value estimate. These are just more conditions that can cause more delays.

The simplest solution for buyers and Realtors who want to include personal property in the contract is to put all references to personal property on a separate addendum, that we do not have to see.

*The above rate quote has the following assumptions: $400,000 Loan Amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20% higher than quoted rate for a $400,000 loan. Estimated closing costs affecting the APR include $4,595 for Origination and Processing Fees, $850 for other Lender Fees; $1,400 for Escrow Fees, and $1,000 for Prepaid Interest.

Call Jay Voorhees or Heejin Kim at (925) 855-4491

Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646