Deschutes Title Transaction Guide

WHAT IS ESCROW?

Escrow is the neutral third party, or settlement agent, that holds the legal documents and funds on behalf of a buyer or seller. As a neutral third party, they execute the documents according to the buyer’s and seller’s mutually agreed-upon instructions.

Both the buyer and seller rely on the settlement agent to be neutral and impartial, and carry out their instructions relating to the transaction and advise them if any of their instructions conflict.

Professional escrow settlement services are convenient for both the buyer and seller since both parties can move forward separately, yet at the same time, since there’s a central contact person for gathering reports, loan commitments and funds, deeds, and many other items. If the instructions from all parties regarding the transaction are clearly drafted, fully detailed, and mutually consistent, the settlement agent can take multiple actions on their behalf without further consultation.

At the end of the day, this saves precious time and efficiently facilitates the transaction from start to finish.

Are you ready to let our friendly, experienced team handle all your title and escrow needs?

ESCROW Questions & Answers

How is escrow opened?

As soon as the buyer and seller execute the purchase agreement, the real estate agent(s) will open escrow. At that time, the buyer's "Earnest Money" check will be deposited.

What information does the buyer and seller have to provide?

The buyer must inform the Escrow Officer and new lender of the manner in which the buyer will hold title to their new home so that all documents can be prepared correctly. The manner in which the buyer holds title can have tax and legal consequences. We suggest you consult your attorney or tax advisor to assist you in your decision.

What happens after the borrower submits the loan application?

The lender will issue a loan estimate and begin the qualification process, including verification of information submitted on the application, a credit report, and appraisal of the value of the property.

The lender will require that the borrower obtain hazard/fire insurance and flood insurance, if the property is in a specific type of flood hazard zone

It is also a requirement of the lender that the borrower furnish a policy of title insurance, which protects their security interest in the property. The escrow officer will order this title policy as part of the escrow process.

Once the loan is approved, the lender prepares the loan documents and forwards them to the Escrow Officer who will contact the buyer for an appointment to close. The Lender and Escrow Officer will collaborate on the preparation of the Closing Disclosure which must be delivered to the buyer at least three business days prior to loan consummation. The Escrow Officer will prepare an estimated Settlement Statement and tell the buyer the balance of the down payment and closing costs needed to close the escrow.

What do the parties need to bring with them?

Identification in the form of a valid driver's license or ID card, or current valid passport. Identification is requested so the signing party's identity can be verified by the Notary Public. Lenders may also have additional identification requirements. A cashier's check for the balance of funds needed to close the escrow, made payable to Deschutes Title. A wire transfer of funds directly to the escrow trust account can also be arranged and is also the preferred method of providing "good funds"

When is "Close of Escrow"?

The Escrow Officer will prepare the final Settlement Statement, which is a detailed accounting of all receipts and disbursements made through the escrow. Each party will review and approve the Settlement Statement and execute all documents for transfer of the property.

When all the conditions of the lender and those contained in the escrow instructions have been satisfied, the lender will forward the loan funds to the escrow trust account. The funds in the escrow are disbursed to the entitled parties. The Escrow Officer will arrange for the documents to be recorded. Escrow is now "closed."

STEPS FOR ESCROW SUCCESS...

Our escrow staff is ready to provide you with consistent closings every time. To speed up your transaction, we recommend following our seven steps below to ensure a successful escrow process.

Recommend us for your customers' title insurance. Ask for their Escrow and/or Title Reference number to use for all future communications.

1. Read and understand the Preliminary Report. If there is an item you don't understand, contact your Escrow Officer.

2. Communicate with your Escrow Officer and inform them of important dates for ordering payoffs and releases, as well as loan approvals and other related issues.

3. Inform your Escrow Officer if any changes occur. All changes should be noted in writing. Remember, escrow only acts on mutual instructions barring rare exceptions.

4. It is important to understand the fiscal tax year, debits, credits, prepaid interest, impounds, due dates and delinquent dates in order to ensure that this information will be easily understood by your client. Familiarize yourself with normal buyer and seller closing costs.

5. Check each signature for accuracy. Have your client sign exactly as shown on the document. Make sure all of required documents are signed and notarized when applicable.

7.

6. Double check all papers and documents before returning them to your Escrow Officer to verify.

We take the opportunity to get to know you and to guide you through your transaction. Contact our team if you have any questions or concerns regarding the escrow process.

COMMON WAYS TO VEST TITLE

As an Individual Man/Woman

An individual may hold title in his or her name alone, whether married or unmarried, e.g., Jane Doe, an individual. (Adding the words “an individual” is optional.) If the individual is married and is alone in title, the spouse has no right or title except in a dissolution proceeding or upon the death of the individual.

Tenants by the Entirety/Married Couple

ORS 93.180 provides that a conveyance to a married couple is presumed to create a tenancy by the entirety. This is a survivorship estate as between the two persons, that is, the title held by the couple passes, upon the death of one spouse, to the survivor. No interest passes to the decedent’s estate.

A couple may choose to take title without the survivorship rights of a tenancy by the entirety, that is, as tenants in common, but this election must be stated expressly in the deed to them, e.g., John Doe and Jane Doe as tenants in common. In a tenancy in common, when one person dies, his or her interest passes by inheritance under the terms of the decedent’s will or by the rules of intestate succession.

Tenants in Common

ORS 93.180 provides that persons who are unmarried and take title together are presumed to be tenants in common, that is, each has an equal undivided interest in the property, but this may be spelled out, e.g., John Doe, Fred Jones, and Mary May, each as to an undivided one-third interest, as tenants in common. The fractions may vary as between the parties, if stated expressly.

Survivorship Estate

ORS 93.180 provides that two or more individuals may take title in a survivorship estate. For two people who are unmarried, the election of a survivorship estate must be stated expressly in the deed, e.g., John Doe, Fred Jones, and Mary May, each as to an undivided one-third interest with rights of survivorship.

Registered Domestic Partners

ORS 106.300 to 106.340 (because of the Oregon Family Fairness Act), two persons of the same sex may register themselves in a domestic partnership, provided that neither person is married or registered in a different domestic partnership. Two persons registered in an Oregon domestic partnership are afforded the same privileges, immunities, rights, and benefits afforded to married persons. An Oregon domestic partnership couple may take title as tenants in common or with rights of survivorship, but should state their election expressly in their deed, e.g., John Doe and Fred Jones as tenants in common or John Doe and Fred Jones as Oregon registered domestic partners with the right of survivorship.

Trust

A trust is an arrangement whereby legal title to the property is transferred by the grantor to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called beneficiaries, e.g., Mary May as Trustee of the Mary May Trust under Trust Agreement Dated January 1, 2015.

Entity

A recognized legal entity may hold title to real property in its legal name. Examples of legal entities include a general partnership, a limited partnership, a limited liability company and a corporation. (There are others besides these.) An entity should take title in its legal name as established in its state of origin.

TheabovesummariesaresomeofthewaystotaketitletorealpropertyinOregonandareprovidedforinformational purposesonly.Therearesignificanttaxandlegalconsequencesonhowtoholdtitle.Itisrecommendcontactingan Attorneyand/orCPAforspecificadviceonhowtoholdtitle.

Obtain Names of Attorneys if Appropriate

Life of an Escrow

Request Payoff Demands

Receive and Review Earnest Money Agreement and Instructions

Order Preliminary Title Report

Receive and Review Preliminary Title Report

Request Clarification of Title Exceptions if Appropriate

Receive and Review all Documents

Finalize Statements, Escrow Instructions and Pertinent Documents

Obtain Name of Lender and Loan Amount

Request Fire Insurance if Needed

Forward Documents for Recording and Recheck

Obtain Signatures and Closing Funds from Buyer/Seller

Receive New Loan Funds

Return Loan Documents and Request Funds

Disburse Funds and Forward Final Documents

WIRE FRAUD Protect

Your Money

Every day, hackers try to steal your money by emailing fake wire instructions. Criminals will use a similar email address and steal a logo and other info to make it look like the email came from your real estate agent or title company.

You can protect yourself and your money by following these steps...

Call, don’t email:

Confirm your wiring instructions by phone using a known number before transferring funds. Don’t use phone numbers or links from an email.

Be suspicious:

It’s uncommon for title companies to change wiring instructions and payment info by email.

Confirm everything:

Ask your bank to confirm the name on the account before sending a wire.

Verify immediately:

Within four to eight hours, call the title company or real estate agent to confirm they received your money.

The Internet Crime Complaint Center (IC3) receives, on average, 2,175+ complaints per day.

Total cyber crime losses in 2022 reached $10.3B.

in 2022, there were 5,516 cybercrime victims in Oregon totaling a loss of over $109M.

-2022 IC3 Report, FBI

What to do if you’ve been targeted?

Immediately call your bank and ask them to issue a recall notice for your wire.

Report the crime to www.ic3.gov.

Call your regional FBI office and police.

Detecting that you sent money to the wrong account within 24 hours is the best chance of recovering your money.

This is for information purposes only and should not be considered legal advice.

SELLER

IMPERSONATION FRAUD in Real Estate

Fraudsters are impersonating property owners to illegally sell commercial or residential property. Sophisticated fraudsters are using the real property owner’s Social Security and driver’s license numbers in the transaction, as well as legitimate notary credentials, which may be applied without the notary’s knowledge.

Fraudsters prefer to use email and text messages to communicate, allowing them to mask themselves and commit crime from anywhere.

Due to the types of property being targeted, it can take months or years for the actual property owner to discover the fraud.

Property monitoring services offered by county recorder’s offices are helpful, especially if the fraud is discovered prior to the transfer of money.

Consider heightened scrutiny or halt a transaction when...

A Property:

Is vacant or non-owner occupied, such as investment property, vacation property or rental property

Has a different address than the owner’s address or tax mailing address

Has no outstanding mortgage or liens Is for sale or sold below market value

A Seller:

Wants a quick sale, generally in less than three weeks, and may not negotiate fees

Wants a cash buyer

Is refusing to attend the signing and claims to be out of state or country

Is difficult to reach via phone and only wants to communicate by text or email, or refuses to meet via video call

Demands proceeds be wired

Refuses or is unable to complete identity verification

Wants to use their own notary

TITLE INSURANCE AND WHY YOU NEED IT

Investing in a home is one of the most important investments you’ll ever make. Title insurance is your policy of protection against the “hidden hazards” often resulting in a claim against your ownership.

A title search is a detailed examination of all available public records concerning a property. These records include unpaid taxes, unsatisfied mortgages, deeds, court records, land restrictions, property and name indexes, and many other documents. The purpose of the search is to verify the seller’s right to transfer ownership and to discover any other claims, defects, or rights and burdens on the property. Title insurance is issued after a close and careful examination of the public records.

Even the most diligent searches may not fully reveal all of the hidden hazards. Title insurance protects you against the most common hidden risks including:

Impersonations of the “owner” who isn’t the person they claim to be Mistakes in the recording of legal documents

Forged deeds, releases or wills

Undisclosed or missing heirs including spouse

Deeds by minors or persons of unsound mind

Deeds executed under an invalid or expired power of attorney Fraud

Title insurance adds an extra layer of protection. With so much that goes into purchasing a home, a little extra security will bring you peace of mind.

Let our experts handle everything you need during this often confusing process, so you can sit back and relax.

TITLE Questions & Answers

How much does title insurance cost?

Unlike the annual premiums of most other forms of insurance, you pay a one-time premium for the title insurance. The premium will depend on the type of coverage you and/or your lender request.

Who is covered?

There are two basic types of title insurance policies: an Owner's Policy and a Lender's Policy.

Owner's Policy: The seller typically pays for the policy at closing, generally for the amount of the purchase price. It protects the purchaser and the purchaser's heir's as long as they own the property.

Lender's Policy: Most lenders require title insurance as security for their investment in the property, The borrower typically pays for the Lender's Policy, which is issued for the loan amount.

How does a title company eliminate risks?

Title insurers conduct an examination of the public records looking for matters affecting the title to the real property. These records can include, among other things:

Deeds

Civil and Probate Court Records

Easements

Maintenance Agreements

Assessments

Debts and Other Burdens

Restrictions on the Property

An important part of the title insurance process is eliminating risk prior to insuring, thereby reducing the possibility of claim or loss. However, even the most careful examination cannot disclose "hidden hazards" to title.

What is a Title Commitment/Preliminary Report?

Based on the results of the title examination, we will issue a Title Commitment/Preliminary Report that includes the following:

Names of buyers and sellers

Type and amounts of coverage to be issued

Legal description of the property Easements, liens, judgements, and existing loans

Map of the property

Copies of pertinent documents disclosed in the title report or commitment

An agreement to issue a Title Insurance Policy upon payment of the premium, subject to the terms and conditions as stated

What are some exceptions to the title policy?

The following are some items which are typically not covered by title insurance:

Taxes or assessments not show by the public record

Errors due to poor surveying, such as faulty boundary lines

Limitations on land use, such as laws against farm animals

Exceptions may also be added to your policy

Examples include:

Easements, right of way and other legal obligations noted in the deed or other public records

Restrictive covenants or agreements limiting uses to your property

DEEDS...

Here's what you need to know.

A real estate transaction can be an intimidating process, complete with a host of various documents needed for a successful closing. One of those documents is a deed.

What is a deed?

A deed to a home, not to be confused with a title to a home, is a written legal document that identifies property ownership, and will detail the sale of the property. A deed is the physical legal document that represents the property's title. Title, however, is the legal way of saying you have ownership of the property. The title is not a document, but a concept that says you have the rights to use that property.

How getting a deed works?

During a home-buying transaction, both the seller must sign the deed in order to legally transfer ownership of the property. A title search is performed to ensure the seller has the legal right to transfer ownership to the buyer.

Why a deed is important?

A deed is an important legal tool. It can settle disputes and any unforeseen liens against the property. In order for a deed to be legally enforceable, it must be filed with the recorder's office as a public record document. This allows lenders, taxing authorities and others to access ownership information when needed.

There are various deed types. Below are three common deed types - Warranty, Bargain and Sale, and Quit Claim - along with some variations you might come across.

Warranty Deed

A Warranty Deed contains promises from the grantor about the condition of title to the property. The grantor conveys and warrants that:

At the time of the conveyance, the grantor owned fee simple title to the property without limitations that could result in losing the ownership

The grantor had the right and power to sell the property

The title was then free from all liens and encumbrances that existed before the grantor owned the property and during the grantor's ownership

The buyer will have quiet and peaceful possession of said premises

The grantor will defend against all persons who may lawfully make a claim against property

All of the above warranties are limited by exceptions of any defects noted in the deed.

Bargain and Sale Deed

A Bargain and Sale Deed contains more limited promises about the condition of title than a Warranty Deed. In a Bargain and Sale Deed, The grantor warrants that:

At the time of conveyance, the grantor owned fee simple title to the property without limitations that could result in losing that ownership

The grantor had the right and power to sell the property

The title was free from liens and encumbrances that the grantor created

The buyer will have quiet and peaceful possession against the grantor, unless limited by express provisions in the deed

Quit Claim Deed

A Quite Claim Deed has no promises from the grantor about the condition of title, and the grantor has no responsibility to defend the title on behalf of the grantee.

Special Warranty Deed

This is similar to a Bargain and Sale Deed, though there are no warranties provided by statute. Usually, the grantor warrants that:

The property was free from liens and encumbrances that the grantor created

The buyer will have quiet and peaceful possession against the grantor

Trustee Deed

This is similar to a Quit Claim Deed. There are no warranties of title made by the trustee. The deed only conveys the title that the borrower owned at the time of signing the deed of trust.

Disclaimer: We cannot provide advice on which deed to use, please contact your Real Estate Advisor or Attorney if you need assistance.

UNDERSTANDING THE BASICS of Preliminary Title Reports

We begin the process of preparing a preliminary title report once we have received an order for title services. Our search experts assemble various public records relating to both the property being purchased and the people involved in the transaction. After examining the information gathered, an Examiner prepares the preliminary report, which shows:

current ownership of that specific parcel of land any liens and encumbrances the title company will not cover under the subsequent title policy

What is the point of the preliminary title report?

The preliminary title report gives the conditions for the title company to issue a particular type of policy. It lists title defects, liens and encumbrances that would not be covered if the title policy were issued as of the date of the report. The preliminary title report provides an opportunity to request that actions be taken to remove the objectionable items listed in the report.

If the objectionable items are not eliminated or released prior to the closing and transfer of title, they will be listed as exceptions on the final policy, meaning they will not be coved. For example, the seller could be required to pay a contractor who placed a lien on the property so that the lien would be removed.

Is a preliminary title report just another name for the title policy?

No. The preliminary title report provides the statement of the conditions needing to be addressed in order for a title policy to be issued. The preliminary title report offers no representation of the condition of the property's title. It does not create a contract of liability, which means it provides no protection to the recipient. An actual title policy must be issued in order to provide protection and prevent parties other than the policy recipient from claiming the benefit of owning the property.

What key points should one look for in a preliminary title report?

the extent of ownership rights, including any possible ownership interest on the part of parties other than the seller any restrictions or claims items listed as being excluded from coverage, including liens, restrictions and interest of others (listed numerically as exceptions) interest of third parties, for example, easements limiting use of the property granted by a prior owner

A list of standard exceptions and exclusions of items not covered by your title policy may be attached to your report; if so, you should review this as well.

Does the preliminary title report contain the complete condition of the property's title?

It does not. The preliminary title report is merely an offer to insure upon the terms and conditions stated therein. It details matters that the title company would exclude from coverage were they to issue a policy at a later date.

Need help reading a preliminary title report?

Scan this QR code for a step-by-step guide!

Examination of County Record and our Title Plant for all Documents Affecting Property

Life of a Title Policy

Questions Answered by Title Officer About Exceptions Shown on Title Report

Title Order placed by Customer or Escrow

Perform Judgement Search on all Owners and Buyers

Preliminary Title Report Issued

Supplemental Title Report may be Issued Reflecting any Changes Occurred to the Title or Exceptions

City Lien Records Search for Municipal Liens Against Subject Property

Additional Pertinent Information Supplied to Title Department (Trusts, Agreements, etc.)

Recording Instructions and Original Documents Received and Reviewed by Recorder

Documents Delivered to County Clerk Office and Recorded

Title Policy Reviewed and Issued

Policy and Original Documents Mailed as Instructed

TERMS YOU SHOULD KNOW

APPRAISAL:

An estimate of value of property resulting from analysis of facts about the property; an opinion of value.

ANNUAL PERCENTAGE RATE (APR):

The borrower's costs of the loan term expressed as a rate. This is not their interest rate.

BENEFICIARY:

The recipient of benefits, often from a deed of trust; usually the lender.

CLOSING DISCLOSURE (CD):

Closing Disclosure form is designed to provide disclosures that will be helpful to borrowers in understanding all of the costs of the transaction. This form will be given to the consumer three business days before closing.

CLOSE OF ESCROW:

Generally the date the buyer becomes the legal owner and title insurance becomes effective.

COMPARABLE SALES:

Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called "comps."

EARNEST MONEY DEPOSIT:

Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.

EASEMENT:

A right, privilege or interest limited to a specific purpose that one party has in the land of another.

ENDORSEMENT:

CONSUMMATION:

Occurs when the borrower becomes contractually obligated to the creditor on the loan, not, for example, when the borrower becomes contractually obligated to a seller on a real estate transaction. The point in time when a borrower becomes contractually obligated to the creditor on the loan depends on applicable state law. Consummation is not the same as close of escrow or settlement.

DEED OF TRUST:

An instrument used in many states in place of a mortgage.

DEED RESTRICTIONS:

Limitations in the deed to a parcel of real property that dictate certain uses that may or may not be made of the real property.

DISBURSEMENT DATE:

The date the amounts are to be disbursed to a buyer and seller in a purchase transaction; or the date funds are to be paid to the borrower or a third party in a transaction that is not a purchase transaction.

As to a title policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.

HAZARD INSURANCE:

Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.

IMPOUNDS:

A trust type of account established by lenders for the accumulation of borrower's funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.

LEGAL DESCRIPTION:

A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land, It should thoroughly identify a parcel of land so that it cannot be confused with another other.

LIEN:

A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgements, taxes, mortgages, deeds of trust.

LOAN ESTIMATE (LE): Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the borrower three business days after application.

MORTGAGE:

The instrument by which real property is pledged as security for repayment of a loan.

PITI:

A payment that includes principal, interest, taxes, and insurance.

POWER OF ATTORNEY:

A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an "Attorney-in-Fact."

RECORDING:

Filing documents affecting real property with the appropriate government agency as a matter of public record.

SETTLEMENT STATEMENT:

Provides a complete breakdown of costs involved in a real estate transaction.

TRID:

TILA-RESPA Integrated Disclosures

OBTAINING A NEW LOAN

When and where to apply for a loan?

There are many sources for home loans including banks, credit unions, mortgage companies, and mortgage brokers. Your Realtor may give you several names of lenders who have proven reliable in their previous transactions. Apply for your loan as soon as possible. In fact, it's probably a good idea to know what you can afford before you begin looking for you new home, It can give you more bargaining power when negotiating with a Seller.

Your lender will mail out verification requests and order an appraisal on the property you are buying.

If your lender asks for additional items, please comply promptly with those requests to avoid delaying loan approval.

What is hazard (or fire) insurance?

Hazard insurance covers the dwelling itself and is required by the lender to protect their "risk" in your home. Your lender will explain the necessary hazard insurance coverage to you. If you are buying a condominium, a master policy already exists which includes your unit but it does not cover your personal belongings.

Contact your insurance agent early in the process. This coverage must be provided before the closing paperwork is prepared. Hazard insurance is one of the items frequently postponed until the last minute, and this can result in delaying the closing for a day or more. Order your insurance as soon as your loan is approved; then furnish your Escrow Officer and Lender with the agent's name and phone number. When you talk with your Insurance Agent, be sure to ask about additional coverage in a homeowner's policy to insure your personal belongings and to protect against liability for such events as injuries to visitors.

What happens before closing?

Once the Lender and Escrow Officer have received all invoices and preliminary paperwork, the Closing Disclosure (CD) is prepared. The CD will be delivered to you no later than 3 business days prior to loan consummation (signing), per federal regulations. The CD is intended to disclose costs associated with your loan. In addition to the CD, your Escrow Officer will prepare an estimated settlement statement. This statement indicates what funds go where, and at this time your Escrow Officer can tell you how much money you need to bring to the closing appointment. Be aware that this amount may be higher or lower than previously estimated due to changes in such items as prepaid interest, prorated fees, courier fees, and impound accounts.

What You May Need For The Loan Application

Be prepared to provide some or all of these items to your loan officer:

Addresses of residences for last two years

Social Security Number or Taxpayer ID number

Driver's license or other valid ID

Names and addresses of employers for last two years

Two recent paystubs showing your-to-date earnings

Federal tax returns for last two years

W-2s for last two years

Last two months statements for checking and savings accounts

Real estate loans: names, addresses, account numbers, and payment amounts on all loans for other real estate you own

Loans: names, addresses, account numbers, and payment amounts on all other loans

Credit cards: names, addresses, account numbers, and payment amounts on all credit cards

Addresses and values of other real estate owned

Value of personal property. Your best estimate of value of all your personal property (auto, boats, furniture, jewelry, electronics, etc.)

For a VA loan, Certificate of Eligibility or DD214s

Divorce decree if applicable

Funds to pay upfront for the credit report

TYPES OF LOANS

Adjustable Rate Loan

Adjustable or variable rate refers to the fluctuating interest rate you'll pay over the life of the loan. The rate is adjusted periodically to coincide with changes in the index on which the rate is based. The minimum and maximum amounts of adjustment, as well as the frequency of adjustment are specified in the loan terms. An adjustable rate mortgage may allow you to qualify for a higher loan amount but maximums, caps and time frames should be considered before deciding on this type of loan.

Assumable Loan

A true assumable loan is rare today. This loan used to enable a buyer to pay the seller for the equity in the home and take over the payments without meeting any requirements. Assumables these days generally require standard income, credit and funds verification by the lender before the loan can be transferred to the buyer.

Community Homebuyer's Program

This program is designed to assist first-time buyers by offering a fixed rate and a low downpayment, such as 3 to 5% down. The program doesn't require cash reserves, and qualifying ratios are more lenient; however, the buyer's income must fall within a certain range and a training course may be necessary if required by the program. Ask your Loan Officer if this program is available and whether or not you might qualify.

Conventional Loan

This simply describes a loan that is not obtained under any government insured program, that is secured by investors. It could be a fixed or adjustable.

FHA Loan

This program is beneficial for buyers who don't have large downpayments. The loan is insured by the Federal Housing Administration under Housing and Urban Development (HUD) and offers easier qualifying with less cash needed upfront but the condition of the property is strictly regulated. The seller will pay a portion of the closing costs that would typically be paid by the buyer in a conventional loan program.

Fixed Rate Loan

This loan has one interest rate that is constant throughout the loan.

VA Loan

People who have served in the U.S. armed forces can apply for a VA loan which covers 100% of the purchase price and requires little or no downpayment.

The Loan Process... What to Avoid

Do not change jobs:

A job change may result in your loan being denied particularly if you are taking a lower paying position or moving into a different field. Don't think you're safe because you received approval earlier in the process, as the lender typically calls your employer to re-verify your employment just prior to funding the loan.

Don't pay off existing accounts unless the lender requests it:

If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.

Avoid switching banks or moving your money to another institution:

After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.

Don't make any large purchases:

A major purchase that requires a withdrawal from your verified funds or increases your debt can result in you not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.

MOVING CHECKLIST

Six Weeks Before

Create an inventory sheet of items to move.

Research moving options.

You'll need to decide if yours is a do-it-yourself move or if you'll be using a moving company

Request moving quotes.

Solicit moving quotes from as many moving companies and movers as possible. There can be a large difference between rates and services within moving companies.

Discard unnecessary items.

Moving is a great time for ridding yourself of unnecessary items. Have a yard sale or donate unnecessary items to charity.

Packing Materials.

Gather moving boxes and packing materials for your move.

Contact insurance companies.

(Life, Health, Fire, Auto) You'll need to contact your insurance agent to cancel/transfer your insurance policy. Do not cancel your insurance policy until you have and closed escrow on the sale.

Seek employer benefits.

If your move is work-related, your employer may provide funding for moving expenses. Your human resources rep should have information on this policy.

Changing Schools.

If changing schools, contact new school for registration process.

Four Weeks Before

Four Weeks Before

Contact utility companies.

Set utility turnoff date, seek refunds and deposits and notify them of your new address.

Obtain your medical records.

Contact your doctors, physicians, dentists and other medical specialists who may currently be retaining any of your family's medical records, obtain these records or make plans for them to be delivered to your new medical facilities.

Note food inventory levels.

Check your cupboards, refrigerator and freezer to use up as much of your perishable food as possible.

Service small engines.

Extract gas and oil from machines. This will reduce the change to catch fire during your move

Protect jewelry and valuables.

Transfer jewelry and valuables to safety deposit box so they can not be lost or stolen during your move.

Borrowed and rented items.

Return items which you may have borrowed or rented. Collect items borrowed to others.

One Week Before

Plan your itinerary.

Make plans to spend the entire day at the house or at least until the movers are on their way. Someone will need to be around to make decisions. Make plans for kids and pets to be at the sitters for the day.

Change of address.

Visit USPS for change of address form.

Bank accounts.

Notify bank of address change. Make sure to have a money order for paying the moving company if you are transferring or closing accounts.

Service automobiles.

If automobiles will be driven long distances, you'll want to have them serviced for a trouble-free drive.

Cancel services.

Notify any remaining service providers (newspapers, lawn services, etc.) of your move.

Start packing.

Begin packing for your new location.

Travel items.

Set aside items you'll need while traveling and items needed until your new home is established. Make sure these are not packed in the moving truck!

Scan your furniture.

Check furniture for scratches and dents before so you can compare notes with your mover on moving day.

Prepare floor plan.

Prepare floor plan for new home. This will help avoid confusion for your and your movers.

Moving Day

Four Weeks Before

Review the house.

Once the house is empty, check the entire house (closet, the attic, basement, etc.) to ensure no items are left or no home issues exist.

Sign the bill of lading.

Once you are satisfied with the mover's packing your items into the truck, sign the bill of lading. If possible, accompany your mover while the moving truck is being weighed. Double check with your mover.

Make sure your mover has the new address and your contact information should they have any questions during your move.

Vacate your home.

Make sure utilities are off, doors and windows are locked and notify your real estate agent you've left the property.

CHANGE OF ADDRESS CHECKLIST

The Essentials

Request a "Change of Address" form at a USPS post office.

Friends and family

Financial Institutes

Banks and credit unions

Credit card companies (including department store cards)

Lenders (mortgage, home equity, auto, student loan)

Insurance companies (health, renters, auto, home, medical, dental, disability, lift)

Retirement (pension plans, 401K, retirement accounts, social security, veterans affairs)

Investments (investment agencies and brokers)

Utilities

Phone services (cellular, land line)

Electric

Heating oils (gas, oil, propane, other fuels)

Water (water delivery, water treatment)

Sewer

Waste Disposal

Internet (land line, wi-fi, satellite)

Television (cable, satellite)

Government Offices

Department of Motor Vehicles

IRS

Passport Office

Veterans Affairs

Unemployment Office (if currently receiving benefits)

Service Providers

Delivery services

Lawn care services

Housecleaning services

Pool services

Childcare (daycare, baby sitters)

Veterinarian (including pet groomer, pet sitters, microchip services)

Accountant

Lawyers

Automobile

Auto insurers (insurance agencies and brokers)

Auto lenders (car dealership, bank or loan company)

Department of Motor Vehicles (changing your vehicle registration)

Membership clubs (AAA or similar)

Parking permits

Warranty (if a car warranty is still in place)

Toll pass (Fast Lane, EZ Pass)

Subscriptions

Newspapers

Magazines (USPS will only forward magazine subscriptions for two months)

Movie subscriptions (streaming services or other)

Book and music clubs

Mail order houses

Other

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MOVING WITH YOUNG KIDS

Your family's move can be an exciting time for you and your children. It can also be a stressful and sad time. Moving represents change which can be difficult at any age. Sharing and reading picture books about moving is a great way to prepare kids for what's ahead and give voice to the range of feelings that they may be experiencing.

Most children have an adventurous, curious side to them. Try appealing to this side when telling them that the family is moving. This way, you'll help them view the move as an experience that can lead to exciting discoveries. Even in their excitement, young children will deal with sadness at leaving familiar people, places and activities. Help your kids with concrete ways to make the "old place to the new place" transition. Following are some tips for you to help your young children cope with the move.

Telling Young Children About The Move

Explain where and why you are moving. Highlight benefits of moving that your kids can understand. Use maps and pictures to help illustrate where you are going and make the move more concrete.

Reassure them that their life won't change dramatically.

What to Expect

Moving to a new place can affect a child's behavior and emotions. Toddlers and young children are egocentric. When you show stress, they may think it's because of something they did. Be mindful of your emotions and actions in their presence and give them plenty of reassurance.

Younger kids may be the most eager members of your moving team. Let your kids help by assigning tasks you know they can handle.

Moving Tips

Make a list of all the questions your child has about moving. Create an address book.

Be sure to allocate enough time to say your special goodbyes. Make a last visit to their favorite places. Plan their new bedroom.

Helpful Advice from Parents Who Have Been There

Keep your kids in the loop on important moving information.

Visit the new school and community before you move.

Try to keep things and routines familiar.

Set up a toddler's new room similar to their old one.

Think about volunteering at school. It might be nice for your child to have a reassuring presence in an unfamiliar environment.

PET MOVING CHECKLIST

Pets have many needs which become complicated when moving from one place to another. This moving checklist for pets lists all of the hurdles of pet relocation.

A Month Before Moving Your Pet

Visit the veterinary office.

Make sure to pick up your pet's medical records before leaving your former home. Have your pet vaccinated and stock up on any pet meds needed until you settle into your new home. If your move is difficult for a pet, ask your vet to prescribe sedatives to be given on and around moving day.

Update your pet ID tags.

Have new tags created with the pet's name and your new contact information.

Check licensing laws.

Contact the proper authority in your new location for information on pet licensing requirements. Secure a valid license for your pet.

Moving Day for Pets

Temporary residence.

Your pet is best kept away from all your moving day activities. They'll likely get agitated when seeing items being removed from the home. Having pets stay with friends or board them in a kennel for the day.

Transporting your pet.

If you are driving a car, make sure to take plenty of breaks to minimize the chance your pet gets carsick. If your pet is temperature or moving sensitive, cover their cage with a blanket and keep them in a temperature regulated environment. If your pet becomes easily stressed, consider giving them sedatives.

Settling into your new home.

Once your are somewhat settled into your new home, let your pet roam around and get used to the new space. Since pets will initially be confused about their new surroundings, keep them confined or leashed until you are certain they will not run away from home, Pets that are stressed and confused can be kept confined in a small room with their bed, toys, and other items.

Unusual Pet Moving Circumstances

Flying with your pet.

If your move requires flying with your pet, check with you airline to see what requirements they may have for pet travel. Try to choose nonstop flights since pets may become unsettled by air pressure changes and airport handling.

Moving pets internationally.

Those moving to another county should check with that country's embassy or consulate about any quarantine or health issues related to pet moving. If moving a bird, make sure to secure proper documentation required by the Convention on International Trade in Endanger Species.

Moving fish.

Your local pet store is the best resource for getting information on relocating fish. Depending upon your move, they will have the knowledge and supplies needed for moving fish.