From Contract to Closing

House Exterior 1Now that you have signed the contract to buy your home, what happens between now and the time you legally own the home? A title company may handle the following items. Attorneys, lenders, escrow companies and other persons who are independent of title companies may perform some or all of these functions.

Earnest Money – An agreement to convey starts the process once it is received at the Title Company. Once you submit the loan application, it is usually subject to a credit check, an appraisal, and sometimes, a survey of the property.

Tax Check – What taxes are owed on the property? The Title Company contacts the various assessor-collectors.

Title Search – Copies of documents are gathered from various public records: deeds, deeds of trust, various assessments and matters of probate, heirship, divorce, and bankruptcy are addressed.

Examination – Verification of the legal owner and debts owed.

Document Preparation – Appropriate forms are prepared for conveyance and settlement.

Settlement – An Escrow Officer oversees the closing of the transaction: seller signs the deed, you sign a new mortgage, the old loan is paid off and the new loan is established. Seller, agents, attorneys, surveyors, Title Company, and other service providers for the parties are paid. Title insurance policies will then be issued to you and your lender.

Title Insurance – There are two types of title insurance:

  • Coverage that protects the lender for the amount of the mortgage
  • Coverage that protects the equity in the property.

Both you and your lender will want the security offered by title insurance. Why?

Title agents search public records to determine who has owned any piece of property, but these records may not reflect irregularities that are almost impossible to find. Here are some examples: an unauthorized seller forges the deed to the property; an unknown, but rightful heir to the property shows up after the sale to claim ownership; conflicts arise over a will from a deceased owner; or a land survey showing the boundaries of your property is incorrect.

For a one-time charge at closing, title insurance will safeguard you against problems including those events an exhaustive search will not reveal.

Dos & Don’ts Before You Close Your Loan

House.key.AWGGuest blog post from Josh Flores.

Today I’d like to share some dos and don’ts before closing on your real estate loan. Keep in mind that these are general guidelines and that you should always call your loan officer for guidance.

DO bring a cashier’s check made out to the title company for your closing costs. You can bring a personal check to closing for $500 or less.

DO notify us if your salary or other compensation has changed from what has been noted on your loan application.

DO inform us if your address changes from what appears on your original loan application. We will complete rental and mortgage verification for all of your residences within the last two years.

DO obtain homeowner’s insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house. Call our office with your agent’s name and phone number at least 10 days before closing.

DO keep documentation (“paper trail”) on any large deposits into your account. A “paper trail” is copies of all paperwork necessary to prove financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

DO notify us if you move funds from one account to another and provide a “paper trail” on any transactions.

DO make sure you have a clear termite report on the property. If the termite report is not clear, provide a receipt for treatment that shows the chemicals and the amount used for treatment (upon request).

DON’T acquire any additional credit lines or make any large purchases on existing credit without first consulting us. For example: purchasing a car or buying appliances for your new home will change your debt to income ratios.

DON’T change jobs without consulting us. A change in compensation may affect your ability to qualify. Borrowers must have a two year history of bonus and/or commissions to be counted as income. Lenders may verify employment on the day of closing as a quality control check.

 DON’T co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt.

 Following these dos and don’ts will help you to have a smooth, surprise free loan closing…

JoshFloresPhotoJosh Flores is a senior loan officer with Supreme Lending. He attributes his success as a loan officer not to marketing genius but rather to his practice of working with one client at a time. His philosophy is to do the best, most professional job for each of his clients, which has led to his history of repeated client referrals.

Josh believes that education and experience are the two most important assets he can share with each of his clients, whether that client is an experienced investor or a first-time home buyer.

Josh received his Bachelor of Business Administration degree from St. Edward’s University, where he graduated magna cum laude. Josh and his wife have two children, a daughter and a son.

10 Steps to Selling Your Home

Selling your home can be a daunting process. Is it a good time to sell? What do you need to do to prepare to sell your house? How should you price your home? A licensed Realtor© can help you with every step of the process.

We want to share the specific steps that we lead you through to sell your home.

Family in front of house1. Define your goals, wants, needs and expectations. A good place to begin the home selling process is by exploring your short and long term goals in life and how selling your home fits in. We will walk through a process we use to thoroughly understand our client’s goals, wants and needs to ensure that your expectations are met.

2. Determine the best price for what’s going on in the market right now. We assess the current state of the market and what comparable homes are actually selling for by reviewing a Comparative Market Analysis (CMA) on your home. That way, we can objectively determine its fair market value and price it right.

3. Prepare your property so that it is in top-selling condition. Most of us don’t keep our homes in top-selling condition. We will work with you to help you see things from a buyer’s point of view. We will consult with you on what to repair, replace or remove so that your home makes a GREAT first impression.

4. Implement time-proven, research-based marketing strategies. Your home will be marketed with a marketing plan that has the highest potential for bringing not only the most buyers, but also the most qualified buyers to your doorstep.

5. Show your property. Always keep your home in top-selling condition. When you leave for work, make sure that your home remains in top-selling condition. You know what they say about first impressions!

6. Receive an offer. When a buyer decides to buy your home, an offer will be presented. We will advise you on the offer and whether the buyer is qualified to purchase your home.

7. Negotiate to sell. Most offers require some level of negotiation. We will work together to decide your parameter and we will negotiate on your behalf.

8. Have your home appraised and inspected. Once you have accepted an offer, we will work with the buyer’s agent to coordinate an appraisal, inspections and a survey (if required). If the buyer requires that certain repairs be made on your home, we will continue to negotiate on your behalf and recommend vendors so we move successfully from contract to closing.

9. Prepare for closing. A few days before closing (also known as settlement), we will contact the title company and the buyer’s agent to ensure that all the necessary forms and documents have been prepared. We will work with you to review the closing documents and let you know what additional forms and information you need to bring to the closing meeting.

10. Close! At the closing meeting, ownership of your property is legally transferred to the buyer. We will be present to advise you and ensure that everything goes according to plan.