Doug Francis

  • About Doug
  • Services
  • Sell Your Home
  • Case Studies
  • Contact

Intent to Proceed Confusion

May 21, 2016 By Doug Francis

Mortgage intent to proceed

Do you know when to lock-in your rate or when to pay for your appraisal?

Is it your Intent to Proceed?

These are two mortgage action-items that buyers will need to complete once their contract has been ratified.

Over the past week, I have seen two incidents when there was confusion between home buyers and Bank of America. Understand that my clients have used B of A for a long time without problems, but these two recent hick-ups may be indicative of an internal procedural error as they work to comply with the new CFPB enforced TRID guidelines.

Yes, you can still shop for a loan and the CFPB was created to help and protect you (the consumer), but the lenders are extra cautious these days about violating any guidelines.

My tip is to start selecting a lender early. If you shop after your contract is ratified then you may be in default of your sales contract and potentially lose your deposit or get sued.

That may sound like the story of chicken-little (the sky is falling…) but your sales contract is a binding contract between you and the Seller with dates and deadlines.

Proceed with the mortgage and lock-in later

To give you some context, both of these sales are in Vienna, Virginia and both used the NVAR Sales Contract.

Paragraph 14 states:

Buyer will make written application for Specified Financing no later than seven (7) days after the Date of Ratification.

and the attached Conventional Financing Contingency states:

This Contract is contingent upon an Appraisal. Purchaser shall have until 9 p.m. 21 Days following the Date of Ratification to obtain an Appraisal (“Appraisal Deadline”).

The confusion can start at the CFPB web site where you can get the impression there is a 10-day window when you read this article on their web site: What do I have to do to apply for a mortgage loan?

The critical moment is when the Buyer decides to work with a lender, and that only happens when you confirm you intend to proceed with them.

It is at that moment (acknowledging your Intent to Proceed) is when the lender can collect your appraisal fee (not before) and get the appraisal ordered. That is when the appraisal ball gets rolling.

Remember, the Appraisal Contingency started the day after the Date of Ratification.

Appraisals require a visit to the house

Probably the most scrutinized player in the real estate meltdown of 2008 were the appraisers. The Dodd Frank Act established new restrictions specifically making sure drive-by appraisals couldn’t take place and that a written appraisal was completed.

Appraisal firms need to be at arm’s-length from lenders.

So, appraisal requests now are sent out from the bank to find the least expensive appraiser. Once the appraiser accepts the job, then she needs to visit the property, take photos and head back to the office to find six nearby comparable recent sales. The analysis will involve calculations and adjustments on square footage, condition, location and more. An appraisal takes time to complete because it gets scrutinized to verify the facts.

There are more steps involved in the mortgage QC process, and, if the Buyer didn’t click Intent to Proceed shortly after the Date of Ratification, then the appraisal deadline may arrive resulting in a Notice from the Seller.

Can you see that days may be slipping by here?

Although we may be living in the age of the Rocket Mortgage, there are still plenty of people involved in the process of completing a residential real estate transaction.

If the buyer doesn’t click the link confirming her Intent to Proceed then all hands are tied.

What seems to be happening at Bank of America is that “locking in a rate” and “Intent to Proceed” are being used in the same sentence by the loan officers in the call center. These are two different action-items, but ,for a consumer who is nervous about rejection, they seem like the same action. Better customer service training can fix this presentation and break out each action item when presented to the buyer.

The CFPB is well-intentioned, but buyers aren’t lawyers and Intent to Proceed sounds pretty intimidating.

What you should know

  • Shop lenders before you find the house.
  • Click “Intent to Proceed” in your secure email from the bank.
  • Lock your mortgage interest rate or float until you are ready
  • Ask if the appraisal has been ordered
  • Know Dates and Deadlines

By the way, I am a Realtor and am not a loan officer. I am not affiliated with any mortgage lender.

If you have questions then send me an email.

Filed Under: Blog, Home Buyer Tips Tagged With: Home Buyer Tips, mortgage, Vienna Virginia

About Doug Francis

A Realtor specializing in unique and new homes around Vienna, Virginia, Doug started writing a first-hand blog about his everyday real estate experiences a decade ago. In-depth, helpful and fun has always been the objective. Outside real estate, he was profiled in a commercial for Verisign's "Where the World Clicks" global ad campaign, and was quoted in Money Magazine's Best Places to Live article on Vienna (#3!). He's a Boston University graduate who feels morning coffee is non-negotiable.

Vienna real estate agent Doug Francis

When we bought our house, we were thinking about raising the kids, updating, and building an addition. With our kids now out of college, our plans are looking at our next phase, especially after seeing friends move away and adjust their lifestyles.

So, what’s next after 25 years? It’s a conversation lots of my clients are having with me as they plan to move to the beach, travel, or move closer to grandkids. Helping them see their future, sell their current home, and move ahead to their new plan has been an interesting new chapter.

My background… I am an active licensed agent in Virginia, work at TTR Sotheby’s International Realty in McLean, and sell homes in all price ranges. I donate to the Town of Vienna tree replacement fund, participate in a neighborhood citizens association, and try my best to stay in shape.

Let me help you too: Email doug@dougfrancis.com or call me at (703) 304-6827 to discuss your plans. Cheers!

6808 BROYHILL ST
MCLEAN, VA
Photo of 6808 BROYHILL ST, MCLEAN, VA 22101 (MLS # VAFX2137956)
$2,499,000
49
  • Lot Size
    16,989 sqft

  • Home Size
    6,708 sqft

  • Beds
    6 Beds

  • Baths
    7 Baths

View Virtual Tour

Filmed in Vienna and McLean

https://youtu.be/ClqEIV1zoQg

Planning to sell your home?

Case Studies

Listing Case Studies Continue Reading

Vienna Real Estate

  • $2,199,888 102 JAMES DR SE
    VIENNA, VA
  • $1,295,000 2511 BABCOCK RD
    VIENNA, VA
  • $1,088,888 8807 HIGDON DR
    VIENNA, VA
  • $1,495,000 610 MEADOW LN SW
    VIENNA, VA
  • $3,600,000 626 HILLCREST DR SW
    VIENNA, VA
  • $1,795,000 904 DALE CT SE
    VIENNA, VA
  • $1,200,000 9838 CORAL BELLS CT
    VIENNA, VA
  • $3,300,000 10009 MURNANE ST
    VIENNA, VA
  • $2,525,000 131 KINGSLEY RD SW
    VIENNA, VA
  • $599,000 3005 SPICE CT
    VIENNA, VA
102 JAMES DR SE
VIENNA, VA
Photo of 102 JAMES DR SE, VIENNA, VA 22180 (MLS # VAFX2150256)
$2,199,888
Lot Size
10,019 sqft

Home Size
1,062 sqft

Beds
5 Beds

Baths
7 Baths

2511 BABCOCK RD
VIENNA, VA
Photo of 2511 BABCOCK RD, VIENNA, VA 22181 (MLS # VAFX2149442)
$1,295,000
Lot Size
14,811 sqft

Home Size
3,240 sqft

Beds
4 Beds

Baths
4 Baths

8807 HIGDON DR
VIENNA, VA
Photo of 8807 HIGDON DR, VIENNA, VA 22182 (MLS # VAFX2149464)
$1,088,888
Lot Size
10,455 sqft

Home Size
2,410 sqft

Beds
5 Beds

Baths
3 Baths

610 MEADOW LN SW
VIENNA, VA
Photo of 610 MEADOW LN SW, VIENNA, VA 22180 (MLS # VAFX2149952)
$1,495,000
Lot Size
N/A

Home Size
3,368 sqft

Beds
6 Beds

Baths
6 Baths

626 HILLCREST DR SW
VIENNA, VA
Photo of 626 HILLCREST DR SW, VIENNA, VA 22180 (MLS # VAFX2149036)
$3,600,000
Lot Size
23,523 sqft

Home Size
9,092 sqft

Beds
7 Beds

Baths
9 Baths

904 DALE CT SE
VIENNA, VA
Photo of 904 DALE CT SE, VIENNA, VA 22180 (MLS # VAFX2149540)
$1,795,000
Lot Size
10,455 sqft

Home Size
4,937 sqft

Beds
5 Beds

Baths
5 Baths

9838 CORAL BELLS CT
VIENNA, VA
Photo of 9838 CORAL BELLS CT, VIENNA, VA 22182 (MLS # VAFX2149568)
$1,200,000
Lot Size
20,038 sqft

Home Size
3,020 sqft

Beds
4 Beds

Baths
4 Baths

10009 MURNANE ST
VIENNA, VA
Photo of 10009 MURNANE ST, VIENNA, VA 22181 (MLS # VAFX2149646)
$3,300,000
Lot Size
21,780 sqft

Home Size
9,750 sqft

Beds
7 Beds

Baths
9 Baths

131 KINGSLEY RD SW
VIENNA, VA
Photo of 131 KINGSLEY RD SW, VIENNA, VA 22180 (MLS # VAFX2149584)
$2,525,000
Lot Size
21,780 sqft

Home Size
7,793 sqft

Beds
6 Beds

Baths
7 Baths

3005 SPICE CT
VIENNA, VA
Photo of 3005 SPICE CT, VIENNA, VA 22181 (MLS # VAFX2148724)
$599,000
Lot Size
1,307 sqft

Home Size
1,940 sqft

Beds
5 Beds

Baths
4 Baths

  • 102 JAMES DR SE
    VIENNA, VA
    Photo of 102 JAMES DR SE, VIENNA, VA 22180 (MLS # VAFX2150256)
    $2,199,888
    Lot Size
    10,019 sqft

    Home Size
    1,062 sqft

    Beds
    5 Beds

    Baths
    7 Baths

  • 2511 BABCOCK RD
    VIENNA, VA
    Photo of 2511 BABCOCK RD, VIENNA, VA 22181 (MLS # VAFX2149442)
    $1,295,000
    Lot Size
    14,811 sqft

    Home Size
    3,240 sqft

    Beds
    4 Beds

    Baths
    4 Baths

  • 8807 HIGDON DR
    VIENNA, VA
    Photo of 8807 HIGDON DR, VIENNA, VA 22182 (MLS # VAFX2149464)
    $1,088,888
    Lot Size
    10,455 sqft

    Home Size
    2,410 sqft

    Beds
    5 Beds

    Baths
    3 Baths

  • 610 MEADOW LN SW
    VIENNA, VA
    Photo of 610 MEADOW LN SW, VIENNA, VA 22180 (MLS # VAFX2149952)
    $1,495,000
    Lot Size
    N/A

    Home Size
    3,368 sqft

    Beds
    6 Beds

    Baths
    6 Baths

  • 626 HILLCREST DR SW
    VIENNA, VA
    Photo of 626 HILLCREST DR SW, VIENNA, VA 22180 (MLS # VAFX2149036)
    $3,600,000
    Lot Size
    23,523 sqft

    Home Size
    9,092 sqft

    Beds
    7 Beds

    Baths
    9 Baths

  • 904 DALE CT SE
    VIENNA, VA
    Photo of 904 DALE CT SE, VIENNA, VA 22180 (MLS # VAFX2149540)
    $1,795,000
    Lot Size
    10,455 sqft

    Home Size
    4,937 sqft

    Beds
    5 Beds

    Baths
    5 Baths

  • 9838 CORAL BELLS CT
    VIENNA, VA
    Photo of 9838 CORAL BELLS CT, VIENNA, VA 22182 (MLS # VAFX2149568)
    $1,200,000
    Lot Size
    20,038 sqft

    Home Size
    3,020 sqft

    Beds
    4 Beds

    Baths
    4 Baths

  • 10009 MURNANE ST
    VIENNA, VA
    Photo of 10009 MURNANE ST, VIENNA, VA 22181 (MLS # VAFX2149646)
    $3,300,000
    Lot Size
    21,780 sqft

    Home Size
    9,750 sqft

    Beds
    7 Beds

    Baths
    9 Baths

  • 131 KINGSLEY RD SW
    VIENNA, VA
    Photo of 131 KINGSLEY RD SW, VIENNA, VA 22180 (MLS # VAFX2149584)
    $2,525,000
    Lot Size
    21,780 sqft

    Home Size
    7,793 sqft

    Beds
    6 Beds

    Baths
    7 Baths

  • 3005 SPICE CT
    VIENNA, VA
    Photo of 3005 SPICE CT, VIENNA, VA 22181 (MLS # VAFX2148724)
    $599,000
    Lot Size
    1,307 sqft

    Home Size
    1,940 sqft

    Beds
    5 Beds

    Baths
    4 Baths

Previous Next
 

Thinking of Moving?

If you want to talk about your house and getting it ready for the market then let's set up a time to talk. Even if it's a second opinion, it's okay. Start here.

  • This field is for validation purposes and should be left unchanged.

Have a question?

Homeowners: Add a level of privacy

name withheld by request

Privacy: Hiding your name

Looking for testimonials?

Read through a collection of client comments originally posted on Zillow, Google and Trulia. See what my clients say...

Looking for a Custom Home?

Insights into New Homes in Vienna VA
Virtual tour when selling a home in Vienna VA

Where your house meets home buyers

Home sellers are often caught off guard when I explain that today’s home buyers will decide on their house before ever stepping foot in it. The days of spending hours driving around looking at seven, eight, or nine houses on a sunny Saturday are over. Yes, meeting at 9:00 a.m. to review the available listings […]

“Doug nailed it! Within days, we had three offers, one of which not only met, but far exceeded all of our goals.”
– R. Pollard

“He truly was a partner integrating us unto the community and made it easy for us to take advantage of all Vienna has to offer.”
– A. D’Eredita

“We are so thankful we found Doug to guide us through the complex home selling and buying processes!”
– Scott and Jennie

About Doug Francis

I am a Realtor with TTR Sotheby's International Realty® just outside Washington D.C. in Northern Virginia. I have been a full-time Realtor licensed in Virginia since 1991, and cover a big territory specializing in the Vienna real estate market and custom homes for sale.

I have unique knowledge of digital real estate marketing, and my marketing starts here. My clients have been attracted to my results-oriented strategy for years, and I am accepting new clients for Fall 2023 right now.

Thanks for reading, and feel free to contact me at 703-304-6827 or email me at doug@dougfrancis.com anytime!

Search for a subject

Contact

Doug: (703) 304-6827

TTR Sotheby's International Realty
6723 Whittier Avenue McLean, VA 22101

Office: 703-319-3344
Why do people hire me?

Search for homes in Vienna

Vienna Real Estate Guide

This material can only be used with written permission.

Equal Housing Opportunity

 

Copyright © 2023 Doug Francis · Minimum Pro Theme on Genesis Framework · WordPress · Log in

  • The Four Agreements Victim Blaming
  • What Is Executory Contract
  • Seal the Deal Agreement
  • Cases Related to anti Competitive Agreements
  • Visiting Forces Agreement Suspended
  • Contracts Solutions I
  • Haddington Road Agreement 2013
  • Renegotiate the Terms of the Agreement
  • What Are Enquiries before Contract
  • Nwmls Rental Agreement Form
  • Contract Administration Meaning
  • Anf Eba Agreement Wa
  • Crowdfunding Operating Agreement
  • Difference between Agreement to Sale and Agreement for Sale
  • Stock Sale Agreements
  • Reach Agreement about
  • Concession Agreement Eurotunnel
  • Air Canada Union Agreement
  • Can My Employer Withhold My Contract
  • Rights-Of-Way Agreements