Do all lenders provide a term sheet when they originate your loan, what is a BPO and what is a seller 2nd?  This week we answer 3 more listener questions.
All lenders must provide a term sheet within 3 days of starting your loan. These are commonly referred to as your Good Faith Estimate and Truth In Lending disclosures. These disclosures estimate what fees you will be charged and what your effective interest rate will be.
A BPO is a Broker's Price Opinion. BPO's are performed by real estate agents. Banks and mortgage bankers use the real estate agents to get estimates of value on houses they are doing short sales on. A BPO is cheaper and faster than an appraisal.
A seller 2nd is when a seller gives a 2nd trust deed from their equity to a buyer of their home in lieu of a down payment. These are unusual now due to many sellers having little or no equity.
If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.
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