HOME BUYING GUIDE
TABLE OF CONTENTS
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THE JOURNEY
Your homebuying journey should be exciting Whether it is your first home, your last home, or somewhere in between, it is always the beginning of a new chapter and, while the process may seem daunting, we are here to calm the seas of confusion and show you the way home.
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AGENT REPRESENTATION
Your agent can be a door-opening pen pusher or a fierce fiduciary, advising and negotiating on your behalf - and working toward your best interests alone. Agency matters.
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Knowing the best way to buy your best home can make all of the difference We have spent over a decade investing in the right relationships to ensure that you have a thorough understanding of the process, and the best options available
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FINANCING & LOANS AVOIDING
Whether you are searching for your first home, your forever home, a vacation retreat at the beach or an investment property, we will protect you from the pitfalls of home buying and work with you to identify, vet and qualify properties for your wants, needs and financial parameters. It’s what we do.
TABLE OF CONTENTS
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NEGOTIATING OFFERS
Terms matter Negotiating an offer that fits your financial criteria and properly addresses your purchasing needs, concerns, goals and timeline is the priceless mark of a true professional. Rest easy - our team lives, eats & breathes contract terms.
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INSPECTIONS
Even well cared for properties can have hidden issues. We work diligently to protect and advise our clients to reduce their exposure and uncover unseen and potentially costly problems.
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TITLE
Assisting with any title issues - from surprise easements to probate, title exceptions, new legal descriptions and boundary disputes - is just another day at the office for our team - and one less stressor for our clients
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CLOSING
Closing day is an exciting day and there is still work to be done - settlement statements to be reviewed for accuracy, wiring instructions to be handled with care, and all of the pieces to be coordinated with finesse. We will get you there, no sweat.
THE JOURNEY
WHAT TO EXPECT ON YOUR HOME-BUYING JOURNEY
YOUR HOME-BUYING JOURNEY
While every purchase process will look slightly different, here are the basic steps that you can expect to encounter - and what you should look for - along your home-buying journey.
Hire an Agent Representative
Buying real estate is a complex matter at the best of times There are a tremendous number of factors to consider, and no two homes or transactions are alike However, with all the shifting sands and potential pitfalls of the current market, it’s more important than ever for you to have a trusted advisor in your corner Find your best match and sign a Buyer Broker (or Agency) Representation Agreement
Get Pre-Approved For A Loan
If you will be financing all or part of your purchase, it is strongly recommended that you get pre-approved for a loan before you start viewing homes with your agent. A pre-approval letter gives you tremendous bargaining power over a buyer who has not taken those steps, and many sellers will require them to procure a showing, in an attempt to weed out buyers who are not serious. The pre-approval process also ensures that you are picking a price point that you are completely comfortable with, and that you have a full picture of your financial position
Get Under Contract & in Escrow
Once you and your agent have found the perfect home, it’s time to strategize and make your best offer with the price and terms that are ideal for you. At the time your offer is accepted, you will need to be prepared to deposit an agreed-upon amount (the escrow deposit, or earnest money deposit) into an “escrow account” for safe holding until closing. If the contract is cancelled for any reason, you and the seller will both need to sign off on the release of these funds. At closing, this amount will be credited toward your purchase and closing costs.
Inspections & Repairs
Now that you have a binding contract, you will (usually) have an opportunity to perform whatever inspections of the property will be necessary to determine it’s condition and, unless your contract is “as-is,” what if any repairs should be addressed by the seller prior to closing This is also an opportunity for you to assess (via a trained inspector) the true condition of the property, and to uncover any underlying conditions that might exist. A home inspection, termite inspection, roof and insurance inspections are all fairly standard and highly recommended. Other inspections like mold or lead-based paint may be performed depending on the property and your wishes.
YOUR HOME-BUYING JOURNEY CONGRATULATIONS!
Insurance
If you are financing your purchase, the lender will require insurance Since your insurance payment, in most cases, will be factored into your monthly home payment and loan qualification, procuring your best coverage and premium is important to accomplish sooner rather than later. Flood insurance is a separate policy from wind and hazard and should always be considered, whether required or not. A staggering 75% of flood claims come from properties that are not in flood zones.
Title
While you and your agent have been busy with inspections and requesting repairs and gathering insurance quotes, the title company has been hard at work ensuring that clear title can be passed from the seller to you. Prior to closing, they will issue a Title Commitment that outlines any potential issues and exceptions to title they have found so that those items can be addressed and/or reviewed prior to closing.
Clear to Close
The most wonderful words in the real estate language! This means your lender and their underwriter has satisfied all of their requirements for your loan and the loan package is being created and sent to title in preparation for closing. Time to take a deep breath and make those final moving day preparations...
Closing
The big day! In advance of closing you will want to make sure that you have scheduled all utilities to be turned on in your name as of the closing date (unless you & the seller have made other arrangements) and that you come to closing with your drivers license and any special documents that may be needed - powers of attorney, etc Because you and the seller may be signing at different times of the day, the closing will be official once everything is signed and the purchase is completely funded.
A WORD OF CAUTION CONCERNING WIRING FUNDS
If you will be wiring any funds as a part of this process, BE SURE to get and/or give the wiring instructions verbally via a known phone number or in person You cannot be too diligent Wire fraud is real Never give or receive wiring instructions through unsecured email When giving or receiving wiring instructions, call a known number and confirm them in person. Always.
AGENT REPRESENTATION
WHAT YOU NEED AND WHAT SHOULD YOU LOOK FOR
SELECTING AN AGENT AND A BROKERAGE TO REPRESENT YOU - IN ONE OF THE BIGGEST INVESTMENTS YOU WILL EVER MAKE - IS A DECISION THAT YOU SHOULDN’T TAKE LIGHTLY... WE CERTAINLY DON’T.
We implore you to educate yourself on the benefits of representation, the potential costs and risks of going it alone, and the value of having a trusted advisor advocating for you throughout this complicated, sometimes daunting process.
We want our clients to be the smartest, savviest homebuyers on the planet and to be raving fans for life - and we stand ready to earn your business.
There are 3 distinct ways that a real estate agent and their brokerage can engage with a customer or client in the state of Florida.
As an informed consumer, the first step is to have a working knowledge of what those relationships are - and to understand the differences.
FLORIDA BROKERAGE RELATIONSHIPS
SINGLE AGENT
1
Represents your interests above all others in the transaction
Trusted advisor throughout the process Fiduciary relationship
Owes confidentiality, obedience, loyalty
Must be disclosed in writing
Secured via an exclusive buyer brokerage agreement
TRANSACTION BROKER
Represents the transaction
Cannot provide advice or opinions
Limited confidentiality
Default (presumed) in Florida and Alabama 2
2 2 3
NO BROKERAGE RELATIONSHIP
May represent the other party
Cannot provide guidance or opinions
No confidentiality
Must be disclosed
Minimum legal requirements
Exclusive Buyer Broker Agreements
What they are and how they benefit you as a buyer
Much like a listing agreement for a home seller seeking agent representation, a Buyer Broker (or Buyer Agency) Agreement should be in writing and signed by both parties and should establish, as one of its primary functions, an exclusive fiduciary “Single Agent” relationship between the agent/brokerage and the buyer- if full representation is being offered This means that the agent and his or her brokerage are agreeing to represent the buyers’ interest above all others in the transaction, including their own. The agent is also committing to diligent efforts, communications, and other performance-based activities in return for a professional fee once a propertyhasbeenprocuredforthebuyer
The agreement should also cover whether an advance retainer is required (applied toward any commissions eventually earned) as a hedge against upfront time, effort and/or expense outlay on the part of the agent, and specify the agent’s professional fee due upon performance (at closing), which may be offset or paid entirelythroughnegotiationswiththeseller.
What’s the benefit?
For the agent, the primary benefit lies in knowing that their buying clients (or “principals”) are as committed to the partnership as they are – that the time spent working for their buyer, is time wellinvested and that they will, when that perfect property is secured for their principal, be fairly compensatedfortheirefforts.
Forthebuyer,thebenefitisinknowingthatyou have a well-qualified, committed professional under contractandrepresentingyourinterestsalone.
Much different from the “transactional” agents who abound today, a Buyer’s Agent is not trying to sell you a certain house because it’s the one you called about or because it’s their listing - they are trying to find theperfecthomeforyou,period.
Bottom line, if you expect high-level services, including representation, and you are considering an agent who has not mentioned your option to be represented as a “Single Agent,” you may want to ask that question sooner rather than later
As both Florida and Alabama (and many brokerages) assume the default role of transaction agent, a signed buyer agreement does not equal agent representation
Always read your documents! Agency laws, options and disclosure requirements are different for every state Know the questions to ask Know the service to expect Know the experts to trust Expect Better.
Exclusive Buyer Broker Agreements
FAQ FREQUENTLY ASKED QUESTIONS
WHAT IF I CAN’T AFFORD TO PAY MY AGENT A PROFESSIONAL FEE?
The buyer broker agreement outlines the professional fee that will compensate your buyer agent representative for their services. That amount will be offset by any amount that the seller agrees to pay when negotiated as a part of the offer. The portion of the fee not agreed to be paid by the seller, if any, will be added to the closing settlement statement as a buyer closing expense.
CAN I STILL WORK WITH OTHER AGENTS?
This is like asking if you can keep dating once you get married. When you enter into an exclusive buyer broker agreement with an agent/brokerage, it is a committed relationship. While it can be cancelled in writing and under certain conditions (if duties are being breached or abandoned, as an example), while it is active, it is understood to be an exclusive commitment. Looking at properties with other agents would be a misrepresentation to them, and a breach of loyalty to the agent who has pledged loyalty to you
IS IT OK TO CALL LISTING AGENTS FOR INFORMATION?
We’d rather you didn’t If you see a home that you are interested in, please let your agent know If you are doing the vetting, you could inadvertently compromise your position without even knowing it. Your agent is skilled at knowing what to say - and, more importantly, what not to. Let your trusted agent advisor do the work - and the talking - for you.
WHAT ABOUT BUILDERS & VISITING NEW CONSTRUCTION MODELS?
If you should happen to wander into a new home model on a whim and without your agent representative at your side, it is imperative that you let the builder’s representative know immediately that you are being represented by an agent and who your agent is Ask that it be recorded with your information If you don’t do this at first contact, some builders will not recognize your agent’s involvement if you ultimately purchase from them This means you will owe the professional fee without being guaranteed the benefit of your agent’s guidance or negotiation skills, and the builder may not be willing to negotiate any contribution toward the buyer agent professional fee If possible, it’s always best to plan these visits so that your agent representative can accompany and protect you
WHAT IF I FIND A FOR SALE BY OWNER?
We work with for sale by owners, or private sellers, frequently In fact, your agent will be exploring on and off-market homes for you throughout your homebuying journey If you happen upon a for sale by owner that looks promising, or that you would like to see, just pass the information along to your agent advisor and they will be happy to set the appointment to see the property
FINANCING AND LOANS
FUNDING YOUR PURCHASE THE RIGHT WAY
FUNDING YOUR PURCHASE
Unless you will be paying cash for your new home, the next key partner that you will need in this journey is a lending partner - someone to help you select the right loan product for your situation, and for the property type that you are most interested in purchasing. Because we’ve spent decades building trusted relationships with a variety of lenders that cover every manner of lending program, your agent representative can help you make this valuable connection, if needed
Loans can be unique to the borrowers, property conditions, property locations, property types, or some combination thereof - and the interest rates can fluctuate depending on credit worthiness, property use, and loan type as well.
Lending can be a complicated endeavor - and we are here to simplify the process, which is why selecting your trusted agent advisor is always step #1.
A FEW EXAMPLES OF LOAN PRODUCTS & PROGRAMS
SHIP First-time Homebuyer Assistance
Construction Loan Perms
Adjustable Rate Mortgages
Condo Products
JUMBO Loans
Hometown Hero Assistance Funds
Investor Loans
Renovation Loans
FHA Loans
VA Loans
Conventional Financing Loans
USDA Rural Housing Development Loans
COMMON LOAN TYPES
Primary residence borrowers
96 5% financing (3 5% down)
Min 580 FICO score
Debt to income ratio < 43%
Mortgage Insurance required
Active Duty & Military Veterans
100% financing
2% funding fee (can be financed)
Subject to entitlement availability
Min FICO score varies with lender
CONVENTIONAL USDA RURAL HOUSING
Downpayment varies 0-20% typically
Generally less strict underwriting
Wide variation in offerings & FICO
score requirements among lenders
Min 620 FICO score
Property in USDA eliglble location
100% financing
No mobile homes or rehabs
*All information and requirements listed are as of 2024 - please check with your lender for most current requirement*
LENDING TERMS
Although it can sometimes feel like a different language, here are a few common lending terms to help demystify the process and decipher the code.
POINTS
Prepaid interest collected on the frontend of a loan (at closing) in return for more favorable short or long term interest rates.
GFE (GOOD FAITH ESTIMATE)
Estimate of your closing costs given early in the application process - often before you have a contract or have identified the home - so there is some guesswork involved Your agent can use this to perform a more accurate estimate of your closing costs once you have a property, insurance estimate and offer terms in mind
CD (CLOSING DISCLOSURE)
Your lender is required by law to give you the standardized Closing Disclosure at least 3 business days before closing This is what is known as the Closing Disclosure 3-day rule. This requirement is pursuant to the TILA-RESPA Integrated Disclosures guidelines, which went into effect on October 3, 2015.
FICO SCORE
FICO is the acronym for Fair Isaac Corporation, as well as the name for the credit scoring model that Fair Isaac Corporation developed. A FICO credit score is a tool used by many lenders to determine if a person qualifies for a credit card, mortgage, or other loan.
OVERLAYS
While there are some standards in lending there are also some requirements that are unique to each lender or institution - these are called “overlays” because they are overlaid on top of the base loan requirements. This means that a borrower who does not qualify for a loan with one lender due to additional requirements, may qualify with another lender for that same loan type, if their overlays are different
UNDERWRITER
This is the person (or department) who evaluates the borrower for credit worthiness and, often, the loan for its marketability for resale on the secondary market Most lenders sell their loans to third parties after closing.
RATIOS
Your debt to income ratio is an important factor that any lender will consider when evaluating the payment (and home price) you qualify for Every loan type has a different debt to income ratio and it can also vary from lender to lender with overlays. Remember that your taxes and insurance will be part of your payment as well If they are too high, they could throw your ratio off
AVOIDING PITFALLS
HOW TO AVOID COSTLY PITFALLS AND FIND THE PERFECT PROPERTY
COMMON BUYER PITFALLS TO
WATCH FOR
CALLING LISTING AGENTS
Remember, listing agents are hired to sell one home and one home only - and they represent the seller. Let us do the talking when you find a property that peaks your interest Even a passing remark could compromise your negotiating position.
PROPERTY CONDITION
Many loan types have strict requirements on property conditions. Your willingness to accept certain deficiencies will not matter if they are incompatible with your loan type. Know what your options are (and aren’t) going in.
TOO MANY OPINIONS
As well-intended as they may be, too many cooks will definitely spoil the soup. Unless they will be paying your mortgage, resist getting others involved until you have narrowed down the choices to your favorites. It’s easy to lose your opinion in everyone else’s.
DISTRACTIONS
Staying on course is important. Don’t get distracted by “neat” or “interesting” properties that don’t fit your needs or homebuying criteria. There will be plenty of time for window shopping later!
COMMON BUYER PITFALLS TO WATCH FOR
HXOften, when the heavens part and the trumpets sound, that initial excitement is accompanied by a host of “what if”s. This is normal. Work through any concerns with your agent and turn them into contingencies in your offer if they are legitimate. Don’t lose the house.
If you have a home to sell, overcoming that contingency can be done if the seller can see that it is on the market, priced well and you are serious. If you haven’t already taken those steps, it is much harder to convince another seller that you are motivated enough to take the risk.
Making an offer without a preapproval is essentially adding another obstacle to your offerIF I can qualify, here’s what I’m willing to pay. Having a preapproval from a lender puts you in the drivers seat and is a powerful negotiating tool.
LOWBALL OFFERS
Everyone wants a good deal and no one wants to be insulted. It’s important to give some market or other context for your offer, especially if it’s well-below the seller’s asking price. If you go too low for no reason, the seller may discount you as not serious and resist working with you at all.
NEGOTIATING OFFERS
PRICE, TERMS & PROPERTY CONDITIONS GETTING THE HOUSE YOU WANT
NEGOTIABLE TERMS
With homebuying, everything is negotiable, from repairs and closing costs to furniture and appliances Offers and counteroffers can negotiate on a mix of these factors
Here are 31 negotiated aspects in homebuying listed below:
PURCHASE PRICE
PURCHASE TYPE (AS-IS, W/ REPAIR LIMITS, ETC)
CLOSING DATE
EARNEST MONEY DEPOSIT
CLOSING FEES
TITLE FEES
HOME WARRANTY COVERAGE
INSPECTION CONTINGENCIES
SALE OF ANOTHER HOME
INSURANCE CONTINGENCIES
INSURANCE INSPECTIONS
FIRST RIGHT OF REFUSAL ON ANY ASSOCIATED PROPERTIES
TITLE INSURANCE FEES HOME REPAIRS
CITY | COUNTY TRANSFER TAXES
WOOD-DESTROYING PEST CLEARANCE
PRO-RATA CREDITS AND/OR DEBITS LOAN CONTINGENCIES
HOA TRANSFER & PREP FEES CONTRACT TIMELINES
HOA APPROVALS
GOVERNMENTAL REQUIREMENTS
PEST INSPECTION REPORT NOTICE TO PERFORM
HOME INSPECTION/DUE DILIGENCE TIMELINE LIQUIDATED DAMAGES
OTHER INSPECTION REPORTS (IE. ROOF, SEWER/SEPTIC, RODENT, LEAD, MOLD, RADON, ETC)
PRE AND/OR POST-OCCUPANCY NEEDS
APPLIANCES INCLUDED AND/OR EXCLUDEDWARRANTIED OR NOT
ARBITRATION OF DISPUTES
CLOSING COSTS RESPONSIBILITY, INCLUDING ANY AGENT COMMISSIONS OWED
INSPECTIONS
TIPS & CHECKLISTS FOR A SEAMLESS INSPECTION
WHAT IS A HOME INSPECTION?
A professional home inspection is where a qualified home inspector looks for any defects and potential problems. Just as an appraisal is designed to protect mortgage lenders, an inspection is for the home buyer's benefit and is usually performed right after a contract agreement is reached with the seller.
HOME INSPECTION CHECKLIST FOR BUYERS
OUTSIDE THE HOME INSIDE THE HOME
ROOF - All roofs need maintenance, so you'll want to know how soon it could become a major expense. Find out how old it is and ask questions about any damage or discoloration you notice. Also, check nearby trees. Leaves and branches cause damage and give rodents easy access.
WATER - Water can be destructive, so you'll want to look for signs of intrusion. Water stains on ceilings, walls, or floors. These could indicate a roof or pipe leak. Leaks or water stains inside sink cabinets. Be sure sinks and tubs drain properly. Evidence of leaks in the attic and basement. Water stains below windows. Bubbling paint on a window frame could be evidence of water intrusion and a poor seal.
WATER - Water can cause rot wood, foundation damage, and mold or mildew issues Look for anything that would cause rainwater to flow onto or under the house The rain gutters should be clean and direct water away from the property
APPLIANCES - Turn on appliances, including the heater and air conditioner, to make sure they run. Run the garbage disposal. Confirm the home has hot water and all plumbing fixtures work.
FOUNDATION - Problems with the foundation could prove costly Watch out for big cracks in the ground, raised foundation, or walls Also, pay attention to any trees growing close to the house It's very common for roots to cause damage that isn't obvious
SIGNS OF OLD AGE - Old houses are wonderful. If you buy one, you might need to upgrade certain features If a wood floor has already been refinished, it may be too thin to refinish again Clay and cast iron pipes wear out Old windows are not energy efficient Old wiring could be a fire hazard Older homes may not have enough electrical outlets to accommodate a digital family
WHAT HAPPENS DURING AN OFFICIAL HOME INSPECTION?
The official inspection process is a lengthy visual, functional and safety inspection of the home exterior, interior and systems. We always recommend that you hire a professional inspector to perform your home inspection and provide a thorough report with photos.
Items that are commonly checked include:
WALLS, CEILINGS, FLOORS, AND DOORS
INTERIOR PLUMBING FIXTURES
STRUCTURAL INTEGRITY
PROPER VENTILATION
VISIBLE TERMITE DAMAGE
ELECTRICAL PANEL
GROUND FAULT CIRCUIT INTERRUPTER RECEPTACLES
CARBON MONOXIDE AND SMOKE DETECTORS
GARAGE DOOR OPERATION
APPLIANCES
DOORS & WINDOWS
ROOF
HVAC OPERATION & AGE
WATER HEATER OPERATION & AGE
ATTIC SPACE & INSULATION
TIPS FOR A SUCCESSFUL HOME INSPECTION
BE THERE IF POSSIBLE.
You don't have to attend the inspection If you do, the inspector can point things out to you and you can ask questions of him/her directly. Most inspectors prefer buyers to come at the end of the inspection to minimize distractions & to allow a full run-down of the findings.
BE PREPARED.
Bring a blank inspection checklist and jot down questions to ask the inspector
CHECK FOR DISCLOSURES
Review any seller disclosures you received before inspection day. Be sure to ask your inspector to look at those areas and verify repairs. If you are buying a foreclosed home, there may be no disclosures.
LET THE INSPECTOR WORK.
Avoid unnecessary interruptions that could cause an error or omission
MAKE SURE THERE'S TIME TO ASK QUESTIONS
Set aside some time to discuss any findings at the end of the inspection.
TITLE
BE SURE OF YOUR HOME INVESTMENT
WHAT IS A TITLE SEARCH & WHY?
A title search is the process in which a title company or attorney searches and examines public records and other documentation about a property to ensure it is able to be sold and its title is free of any claims, liens or other issues that could jeopardize your ability to legally own the property. The most common title defects include liens, prior mortgages, prior unpaid taxes and fraudulent transfers.
WHAT IS TITLE INSURANCE?
When a piece of real property is financed, purchased, or sold, a transaction record is generally filed in public archives Likewise, other events that may affect the ownership of a property are also documented and filed These may include, home improvements, code violations, liens, levies, encumbrances, the list goes on and on When a buyer purchases title insurance, the title company searches these records to find (and remedy, if possible) issues that may affect the purchaser’s ownership.
Aforgery50yearsago;adeedexecutedunderduress;bigamythatwentunknown;an errorbyaclerkinthecountyrecorder’soffice;amisappliedtaxpayment-theseare butafewofthehidden“titledefects”thatcouldcauseyoutoloseyourproperty. And,evenifyoudon’tloseyourpropertyaltogether,titleproblemscouldmakeit impossibleforyoutosell
Youdon’twantaproblemthatoccurredlongbeforeyouboughtyourpropertyto depriveyouofownershiporyourrighttouseordisposeofit-andyoudon’twant topaythepotentiallyhighcostofdefendingyourpropertyrights.AnOwner’s Policyoftitleinsuranceisyourbestprotectionagainstpotentialdefectsthatcan remainhiddendespitethesearchofpublicrecords
TITLE INSURANCE BREAKDOWN
TITLE SEARCH
UNDISCOVERED RISKS
Withtitleinsurance,theinsurerfirstworkstoidentifythestatusof ownership,liensandothermattersaffectingtitlebycollecting documentsaffectingtitlefromthepublicrecordsthatare statutorilyidentifiedfortherecordingofrealestatetransactions Thisprocessiscalledthesearch Oncethesearchiscompletethe titleinsuranceunderwritercanthendeterminetheinsurabilityofthe titleandlistexceptionsfromcoverageandrequirementstoinsure.
Eventhemostskilledtitleprofessionalsmaynotfindalltitle problems.Otherrisksincludemattersthataremoredifficultto identify,suchastitleissuesresultingfromfilingerrors,forgeries, undisclosedheirs,andotherunforeseenproblems That'sonereason whyyourtitleinsurancepolicycanplayakeyroleinprotectingyour realestateinvestment.
LOAN POLICY
OWNER’S POLICY
Whenyoupurchaseapropertybysecuringamortgage,youwillbe requiredbyyourlendertopurchaseaLender’sPolicyoftitle insurance.Thispolicyinsuresthelenderagainstcoveredtitle defectsuptotheamountofinsurance Thiscoverageinfavorofthe lenderlastsforthelifeoftheloanunderlimitedcircumstances statedwithinthepolicy.
YouwillalsohavetheoptionofpurchasinganOwner'sPolicy Insurance,whichprovidesinsurancedirectlytotheinsuredowner listedinthepolicyanddescribesthetypeofrealpropertyinterest owned.Theinsuranceinbothanowner'sandaLoanPolicyissubject tothepolicyprovisionswhichincludethecoveredrisks,exclusions fromcoverage,theconditionsandtheexceptionstotitlelistedona scheduletothepolicy.
PREMIUM
Therewillbeaone-timepremiumforboththeLenderPolicyandthe Owner'sPolicypaidatthecloseofyourtransaction,basedonthe totalvalueofyourhomeandtheamountofyourloan Purchasinga homeorotherrealestatemaybeyourmostsignificantfinancial investmentyouevermake.Titleinsurancecangiveyouaddedpeace ofmindinknowingthatthetitletoyourinvestmentisinsured
CLOSING
GETTING PREPARED FOR CLOSING & BEYOND
WHAT IS CLOSING?
Closing is the final part of the homebuying process where you become the legal owner of your new home. On closing day, you’ll sign your loan and closing paperwork, and the property deed will be transferred into your name.
Review closing disclosure (“CD”) and make sure any errors are corrected. This document must be correct and signed 3 days prior to closing.
BEFORE YOU CLOSE
TO ENSURE A SMOOTH CLOSING, MAKE SURE YOU’VE TAKEN THE FOLLOWING STEPS PRIOR TO CLOSING DAY
Find out what funds will be needed to close and how to transfer payment - most title companies only accept wired funds.
BEWARE of scammers! Always call the title company on a known number to confirm before wiring any funds - and bring your wiring confirmation to closing.
Do a final walk-through of the home 24 hours before closing to confirm condition.
WHAT TO BRING TO CLOSING?
PHOTO ID
ANY POWERS OF ATTORNEY OR SPECIAL DOCUMENTS
CHECKBOOK (IN CASE THERE ARE ANY LAST MINUTE CHANGES)
WIRING CONFIRMATION FOR FUNDS NEEDED TO CLOSE
WHAT TO EXPECT AT CLOSING?
BE PREPARED TO SIGN A LOT OF PAPERWORK.
BE SURE TO ASK QUESTIONS. IF SOMETHING DOESN’T MAKE SENSE, ASK. ONCE FUNDS ARE RECEIVED, YOU GET THE KEYS TO YOUR NEW HOME!
THE BIG DAY IS HERE!
BELOW ARE SOME FINAL REMINDERS TO ENSURE YOU ARE READY FOR A SUCCESSFUL CLOSING!
CHANGE YOUR ADDRESS WITH:
The US Postal Service
Your Bank and Credit Card Companies
The Department of Motor Vehicles
(update your ID or driver’s license)
Auto insurance company
SWITCH UTILITIES TO YOUR NEW ADDRESS (A DAY OR TWO BEFORE)
Water
Electric
Gas
Garbage
Internet/Cable
If the home will be your primary residence, file for your homestead exemption with the county Tax Collector by March 1st!
NOBODY KNOWS HOMES BETTER. NOBODY KNOWS HOMES BETTER.