Protect Your Transaction - PYT Mortgage Program
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 follow 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
Protect Your Transaction Explained in Detail
Protect Your Transaction (PYT) was developed for a true need in the industry. If you would buy a phone and pay $99.00 plus maybe the added insurance of $11.00 a month why is it that a loan has ZERO recourse for the lenders non-performance?
I have personally seen many peoples lives turned upside down due to a HORRIBLE lending process. The lender didn't check the documentation UP FRONT! (who does that!) Then YOU the REALTOR take the client out looking at homes, banking on the fact that the lender did their job UP FRONT. You show them 10, 12, sometimes up to 30 homes and FINALLY after 3 months of showing properties you have an accepted contract.
That's when you get the call that goes something like this "Bill, do you think maybe you could nudge your client for me? I asked them 3 months ago for all their documentation and they never sent it in." AND your stomach instantly drops like when an airplane hits an air pocket.
PYT was born for the above scenario, it was out of a true need to protect buyers and sellers against bad loan originators who do not do their job up front. PYT is a quality assurance program that provides all parties with confidence that the Buyer's offer is a truly Approved and the lender is committed to the loan. 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. Additional months 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.
That is why there is so much stress related to a home purchase ON ALL SIDES! Not to mention your personal income, or expenses you took on when taking the listing or driving the buyer around for months. It is time the Lending world puts their money where there approval is! Don't you agree? It's time that we weed out the bad lenders and protect both clients, Isn't it?
Protect Your Transaction was created to make sure the lender has 'skin' in the game and is committed to the transaction. Now if the loan goes bad, the lender has to pay damages to the buyer who in turn could assign part or all of the damages to the seller! When in history has that happened?
In a nut shell:
Buyer Completes the application process with a PYT lender
When approved, lender issues PYT loan commitment
Buyer finds home of their dreams
Buyer and Seller enter into an agreement that includes PYT loan commitment
Complete the property inspection and loan paperwork
CLOSING DAY - on time and as planned
Important note: If the lender does not perform on the loan once the PYT certificate (below) is issued the lender will pay up to a maximum of $10,000.00 to the buyer protecting the buyer from losing their earnest money OR the buyer could use this to strengthening their offer by assigning all or some of the money to the seller.