Welcome to Ask the Colorado Dream House Team with Dan Polimino!
Dan covers issues that come up during your transaction and turns the Dream Home Spotlight to a beautiful gem in the highly exclusive, gated Highwoods Community.
What's the closing disclosure from the lender and how does it impact my closing
What is the difference between an approved loan and a cleared-to-close
How will the new tax proposal from Congress affect homeowners
00:01 Hi everyone and welcome today's show of Ask the Colorado Dream House Team. I’m your host Dan Polimino coming to you live from Denver Colorado. Well welcome. Everybody. Happy Thursday if you're new to the show. Glad to have you as always. If you got a question about real estate buying investing selling You can leave a comment here on Facebook or we can answer your questions and you can e-mail us at team at Colorado Dreamhouse dot com or call us. We would love to help you. This is all about real estate and the advice we give you here works where ever you live across the United States. It's just good database driven information from our years of experience helping people buy and sell real estate. Two things we like to accomplish in every show we like to give you some market information or news you can use and we like to answer your questions.
00:53 So let's start off with news you can use. And today we're talking about issues that come up problems that come up during the course of a transaction. You're under contract. And problems start occurring. We actually tell everybody we work with. Listen. It's not a question of. If we're going to have problems we know we're going to have problems. The question is are they major or are they minor. And then do you have an experienced professional that's been there done that and knows how to get you through those problems just earlier this week on Tuesday you heard me talk about title issues. All of a sudden we've had this rash of title issues pop up over the last 60 days. People having liens and things pop up on their titles that were never released even though they paid them off right.
01:45 How do you get through that. Do you have somebody experienced that knows how to work with the title company to get you through that into the closing table. We've had four in the last 60 days and we've got our clients through all four but I'm working through one right now where it's not my client. They're trying to close on a house out of state and they're having the exact same problem in their age it can't help them. Then there's inspection issues right. We always come up with inspection issues but how do you get through them really unscathed. And that's again where you need somebody who's a professional who's been there and done that. I had a client recently whose heat exchanger was cracked on his furnace. He didn't have one but he had two furnaces that had a problem.
02:29 And he went out and got an estimate to have them replaced. And the people told them it was$13000 to replace the two furnaces and I said you know what I think you're getting ripped off. I think they're trying to take you for a ride. Why don't you meet with my HVAD guy the guy that I use and the guy that I trust and$6000 less later. These folks are going to the closing table. Yeah. The bid from my guy with$6000 less. All right. So that's just another example of having somebody that's got connections and knows people that can get jobs done and get you to the closing table and get you through inspection. How about a appraisal issues. Do you ever have an appraisal issue come up. Do you know the best way to avoid an appraisal issue is make sure that the listing agent if you're hiring us make sure that we meet the appraiser at the house and talk with them and show them comparables and go through the conversation of just define ok how we got to the purchase price make sure that the appraiser has the correct contract amount because they may have the contract but maybe they don't have the counterproposal.
03:37 Do they have the contract do they have the counter. Were there any seller concessions that are going back from the seller to the buyer on an amendment as the appraiser know about that because these are all things that can take a perfectly good appraisal and screw it up. It's not if you're going to have issues you will have issues during the course of this transaction the question is is do you have a professional on your team to help you get through with him and get to the closing table.
04:04 All right. That's today's news you can use. Now to the questions. Dear Colorado dream house team. Can you explain what the closing disclosure is from the lender and how it impacts a closing. OK so I think it's about two years now where the new trade guidelines came out from the government saying how lenders had to behave in disclosing the loan to the buyer and part of those regulations and there was a lot of them was that the lender must provide you a closing disclosure. All right. Three days before closing and that the buyer must sign that closing disclosure. Now this gets screwed up all the time. Right. You're supposed to close on Friday and the closing disclosure didn't go out until Thursday the day before.
04:53 Let's do the math. Is that three days. It's not. Which means you're not closing on Friday and there's no if ands or buts about it. It's the law. Those are the regulations you can't do it. Right. That closing disclosure must be signed by the buyer. Three days before closing. So if your agent doesn't know this then you know it as the consumer when you're getting a loan and you're closing on whatever day. Make sure you back up three days and sign that closing disclosure from your lender. And if you haven't heard from your lender about if it's coming in if it's on the way if it's you know you call your lender and say am I going to get my closing disclosure. Three days before closing. Otherwise you're not closing on time.
05:38 OK. The Colorado dream house team. What's the difference between an approved loan and a clear to close. Well a lot of people go through the first pass of underwriting and it's approved and it's approved with some conditions. Maybe there are some letters of explanation that need to be supplied. Maybe there's an extra bank statement that needs to be added to the file. Right so that's approved. But a clear to a close is something completely different. A clearer close means it's gone through underwriting. The second time. Right. The first time it went through and it was approved with conditions. The second time it went through and it's approved and underwriting says you are cleared to close. That means the bank is ready to hand over the funds. Those are the words you want to hear clear to close.
06:28 Proof is good but clear to close is better. Dear Colorado dream house team. How will the new tax proposal from Congress affect homeowners. Well there's two plans right now. Currently the way it stands without any new tax proposal is that if you get a mortgage up to one million dollars you can deduct the mortgage interest on a yearly basis. Now the House plan that got approved today has a provision that says we're not going to go up to a million dollars if you're getting a home loan. It's only going to be up to five hundred thousand dollars in which you can deduct the mortgage interest. Anything over in that you cannot. Now the Senate came out with a plan as well and the Senate says no no we're going to leave it at a million bucks we're going to keep it that you can keep your mortgage interest deduction up to a million dollars.
07:21 What will happen. I don't know. I mean obviously the bill the House bill got passed today. It's going to go over to the Senate. The Senate has to pass their bill and the two have to be reconciled. My sense is there's probably going to be a compromise could be somewhere in the middle at 750000. I don't know. How will that affect you. Well in lots other parts of the country you don't have prices as high as Denver. Right. Because 500000 is a normal house. Right but 750 in Denver would be better and would help out buyers that were looking for that mortgage interest deduction. In other parts of the country where your average price point is 150 or 200 thousand five hundred thousand is going to be plenty right.
08:03 I'd like to probably see it at 750 at least 750 to help out those parts of the country where real estate is so expensive like New York Los Angeles Denver Florida and so forth. Just my thoughts. We'll see how it all pans out will be interesting to watch this ride of the roller coaster over the next three or four weeks. All
08:22 right final thing before today's show. New Property came on the market. Just last Friday. If you're familiar with Highlands Ranch which is a really popular suburb of Denver I live there. Great. I've loved it. I've been there 17 years. There is a subdivision in Highlands Ranch called the High Woods. A lot of people want to be in the high woods and this house came up for sale with us last Friday. It's Dowling Court 1 0 2 8 5 down in court. This is a absolutely fantastic house as you can see at the bottom here. Five beds eight baths eight thousand square feet. Really really nice upgrades. Unbelievable panoramic views of the front range and unobstructed it backs to open space. You got a nice trail that you could walk through back there. Look at the mountains. The backyard is a terrific playground.
09:15 It's got a basketball court. It's got a trampoline. It's got an outdoor kitchen with a fire pit a beautiful pond and a waterfall and a putting green for all of you golfers. So check out Delling court on our Web site. Go to Colorado Dreamhouse dot com. Forward slash Deline and you can click the link right here on Facebook. I'll take you right to it. All right. That's it. Everybody have a great weekend. I imagine you're going to start doing your Thanksgiving shopping like us because hey next week is Thanksgiving right. Food and football. Yes. All right. Have a great weekend everybody we'll talk to you next week.