October 10th, 2017 11:19 AM by Scott Fenner
ABOUT PROTECT YOUR TRANSACTION?
Protect Your Transaction? is a quality assurance program that provides all transaction parties with confidence that the Buyer's offer is pre-approved and the Lender is committed to the loan. All PYT Lenders provide the following promises:
Lender will pay $10,000 in the event it fails to deliver on its loan commitment
Lender will issue a loan commitment on or before the 15th day from the complete mortgage loan application
Lender will provide communication and documentation during the loan process
WHY PROTECT YOUR TRANSACTION? WAS CREATED
In a home purchase transaction there are two primary parties, the Seller and the Buyer. Both parties make major commitments in a home purchase transaction.
Sellers agreed to turn-down other offers and may be buyers of a new home that depends on the sale of its current home. An additional month of mortgage payments and uncertainty when transactions do not close represents thousands of dollars and hardship.
Buyers may be selling their current homes, given notices to their landlords, hired moving vans, researched new schools... a lot is riding on making sure their home purchases close.
Basically, everyone wants to feel confident that the transaction will happen. When a Lender makes a commitment to finance the Buyer's purchase, that commitment needs to be one that all parties can trust. What happens when the Lender does not deliver on their commitment? Sellers and Buyers are left to pick up the pieces and the Lender... they move on to the next transaction.
Protect Your Transaction? was created to make sure the Lender has 'skin in the game' and committed to the transaction.