Buyer’s Guide

Nothing compares to what’s next.


Nothing compares to what’s next.
Expertly guiding our clients’ real estate journeys to extraordinary results around the corner or around the globe.
As the Pacific Northwest’s largest affiliate within the global real estate network, Realogics Sotheby’s International Realty (RSIR) has branch offices in Downtown Seattle, Madison Park, Bainbridge Island, Kirkland, Mercer Island, and Downtown Bellevue. The brokerage’s global real estate advisors proudly serve all property types and price points throughout the Puget Sound region and beyond.
Backed by the international network and brand recognition of Sotheby’s International Realty, Realogics Sotheby’s International Realty represents the best of both worlds through local expertise and a global referral network. From the latest market report data and hottest neighborhoods in every town to exceptional opportunities to buy or rent, our team of local experts offers specialized market knowledge as you purchase a home and make one of the most important financial transactions of your life.
This handbook has been prepared to help familiarize you with some of the more common terms you’re likely to encounter, as well as provide you with an overview of both the process and components of a successful transaction. Before starting the home search, you and your real estate advisor can discuss your timeline, price range, needs, preferences, and other parameters for a property that will suit you, your lifestyle, and your goals. Rest assured that you will receive the utmost care, attention, hard work, and professionalism throughout your real estate journey.
Before starting your home search, it is important to evaluate your financial situation, confirm your budget, familiarize yourself with mortgage options, and secure pre-approval from a lender. This will help you conduct your search with confidence and negotiate for your desired home successfully. With a Realogics Sotheby’s International Realty broker, you’ll be prepared before you even take a look at the first house, and ready to negotiate the best offer when you find the one.
We provide the latest market data on the city, neighborhood, and street that you’re interested in living on, to prepare you for your home search. As leaders in real estate, we’re committed to staying ahead of market trends and providing informative analysis on each of our region’s distinct communities. Stay informed with our insightful reports, and request monthly or quarterly data for your desired neighborhood(s) from your advisor.
In this section, we have provided an overview of various financing options that are available to potential homebuyers in our market. It is essential to understand the intricacies of each loan type to make informed decisions when purchasing property. You can choose from a range of financing options, including conventional loans, FHA, VA, and USDA loans. It would be best if you asked your lender to explain the eligibility criteria, benefits, and potential drawbacks of each option. This will empower you to select the financing solution that best suits your needs and financial situation.
Fannie Mae:
• Fixed-rate options:
• Fixed ARM options
• Primary, secondary, and investment properties
High balance
• HomeReady
• Manufactured homes
• Cash-out refinance
• Temporary Buydowns
• One-time close:
Construction-to-Perm
Freddie Mac:
• Fixed-rate options
• Fixed ARM options
• Primary, secondary, and investment properties
Super Conforming
• Home Possible
• Medical Professional Program
• HomeOne
• Imagine
• Fixed-rate
• 100% Financing
• Streamline assist refinances
• Fixed-rate options
• Fixed ARM option
• Manufactured homes
• Non-occupying borrowers
• High Balance
• Fixed-rate options:
• Fixed ARM options:
• Manufactured homes
• 100% financing on purchase transactions
• Interest Rate Reduction Refinance Loan
• Cash-out transactions
• High balance loan amount
A robust selection that appeals to multiple borrowers:
• LTV up to 90%
• Fixed-rate options
• Fixed ARM options
• Interest Only
• Primary, secondary, and investment properties
• Loan amounts up to $3 million
The process of financing a home is similar to taking an airline flight through take-off and landing. At some point you will have turbulence.
- Jolene Messmer | Movement Mortgage
Brought
Program for borrowers who may need alternative options to qualify for a mortgage based on their personal circumstance.
• 12 or 24 months personal or business bank statements
• Debt Servicing Coverage Ratio
• Asset Depletion
• Foreign National
• 40-year terms
• Interest Only
• Fixed-rate and ARM options
• LTV up to 95%
• DTI up to 55%
• Recent credit events
• Cross Collateralization
Broker-out programs allow for niche programs that are not supported in-house:
• Bridge and Cross Collateralization
• HELOCs
• HUD 184
• ITIN and DACA
• Land and Lot Loans
• Commercial Low FICO Government
• One-time Close Government Construction-to-Perm (C2P)
• Vesting in Entities
• FHA Down Payment Assistance
• Fannie Mae Homestyle
• FHA 203k Limited and
• Full VA Renovation
• Escrow Holdback
• Range from 15-day to 75-day
• Long-term locks from 120day to 360-day (upfront fee required)
• C2P locks: 6, 9, or 12 months (depending on construction term)
Providers:
• ARCH MI
• Essent Guaranty, IncGenworth
• Financial - MGIC
• National MI
• Radian
• Lender paid mortgage insurance (LPMI) Borrower paid mortgage insurance Zero Up Front Monthly
• Single Premium
• Split Premium
• Finance Mortgage Insurance
Copy and finance options provided by Movement Mortgage
As your dedicated guide, RSIR advisors will help you find exactly what you are looking for, ensure you pay the right price for it, take care of all paperwork, guide you through the inspection and repair process, and successfully get you to closing. Your advisor will perform in-depth research on your desired neighborhood’s market, previewing listings to ensure they meet your qualifications and gathering market data to guarantee you’re getting the most out of your budget.
Buying a home is a major endeavor, and your advisor will not expect you to be an expert—that’s their job. They’ll guide you through the entire process, from the initial goalsetting conversations to providing comparative market analysis to negotiations to inspections to carrying you through the closing day, they handle the entire process with the utmost care and attention.
Needs, Wants, and Priorities
Purchase Timeline
Financial Parameters and Costs
Buyer Service Agreement
Financing Pre-Approval
Assess Market Conditions and Values
Learn Property Types
Neighborhood Pros and Cons
Listing Information Review Home Tours and Open Houses
Exploring Options/Learning the Market Find the Home You Wish to Buy
Create Timeline of Events
Open Escrow Account
Buyer Good-Faith Deposit
Preliminary Title Report
Lender Appraisal
Removal of Contingencies of Sale 6
Property Inspection and Investigation
Review of Disclosures and Reports
Funding of Loan WEEK BEFORE CLOSING 7
Final Walk-Through
Review and Sign Closing Documents
Buyer Final Deposit
Comparative Market Value Analysis
Negotiation of Best Terms and Price
Record of the Deed
Close of Escrow
Delivery of Keys
Move In DAY OF CLOSING 8 Review Property Documents
Offer Acceptance
In April 2023, Senate Bill 5191, a significant legislative update to RCW 18.86, commonly referred to as the “Agency Law,” was unanimously passed by both the House and the Senate. Signed into law by the Governor in May 2023, these amendments took effect on January 1, 2024. As part of our commitment to keeping you informed, we want to highlight the fundamental changes brought about by this legislation:
1. Written Brokerage Services Agreement: Real estate brokers must establish a written brokerage services agreement with a buyer promptly after initiating real estate brokerage services for the buyer. This agreement ensures clear communication and delineation of responsibilities between the buyer and the brokerage.
2. Limited Dual Agency: The term “dual agent” has been updated to “limited dual agent” to emphasize the restricted nature of representation when a broker represents both a buyer and a seller in a transaction. This change underscores the need for transparency and careful consideration of potential conflicts of interest.
3. Consent to Limited Dual Agency: Buyers and sellers now have the explicit choice to consent to an individual broker acting as a limited dual agent. Consent to limited dual agency must be separately initialed by the consumer, ensuring informed decision-making and transparency in agency relationships.
4. Broker Duties and Responsibilities: The revisions clarify that brokers owe specific duties to all parties involved in a transaction, as outlined in RCW 18.86.030. This reaffirms the commitment to fair and equitable treatment for all participants in the real estate process.
5. Compensation Transparency: Real estate firms are now mandated to disclose to all involved parties any compensation offered to the firm by another party or real estate firm. This requirement promotes transparency and helps prevent potential conflicts of interest.
6. Modernized Pamphlet: The “pamphlet” that brokers must provide to consumers, explaining general information about real estate brokerage relationships, has been simplified. This update ensures that consumers receive clear and accessible information about their rights and responsibilities in real estate transactions.
These revisions to the Agency Law aim to empower consumers with greater transparency, clarity, and choice in their real estate dealings. As you navigate the real estate market, we encourage you to familiarize yourself with these changes and their implications for your transactions.
For further information or assistance, please do not hesitate to contact your real estate advisor.
While you might love craftsman homes or the sleek look of a modern kitchen in a penthouse apartment, you’ll be happiest if you consider what type of home will work best for you. Single-family homes offer more privacy, freedom, and space. Condos often come with condo associations that handle a lot of the outside maintenance for you, but a condo might not have the green space you need and you’ll pay monthly dues to the association.
Nobody knows more about a neighborhood than the current residents! Without being intrusive, look for an opportunity to chat with your potential neighbors. What’s their opinion of the block and the neighborhood?
Check out the local amenities in the neighborhood you are interested in and see if it works out with your dayto-day routine. Are there restaurants, stores, and other services that you enjoy close by? Is the neighborhood near a freeway so you can get on the road in a reasonable amount of time? Also, try to visit the neighborhood multiple times and at different times of the day. Lastly, walk through the streets near the home and see how it feels. You will notice more things walking than just driving by.
If the home is part of a Homeowners’ Association (HOA) you will want to get a copy of the bylaws and study those carefully. Many HOAs have rules you would never even think of. For example, the HOA might regulate the type of plants you can have in your yard, type of fencing you can put up, whether or not you can post signs, and specific rules regarding pets.
Did you know you don’t have to wait for interest rates to drop before making your home purchase? Some buyers assume it’s better to wait for favorable interest rates before making a purchase but sitting on the sidelines can mean missing out on a home that ticks all the boxes. One way we like to think about it is this: you are marrying your home, but you don’t have to commit to your interest rate long term. Realogics Sotheby’s International Realty teamed up with Movement Mortgage to provide some important information about how to refinance—and when.
Simply put, refinancing is replacing your current home loan with a brand new one. Here’s why that might be an option, even if you have a decent rate already:
• You want to reduce monthly payments with a lower interest rate or a longer-term (or both)
• You’d like to pay off your mortgage faster by shortening the terms
• You’ve re-evaluated having an adjustable-rate mortgage (ARM) and want to convert it to a fixed-rate mortgage.
• You’ve got financial hardships, home improvements, or a major purchase on the horizon and you want to tap into your home equity
• Your credit rating has improved making you eligible for a better rate
• You want to get rid of PMI (Private mortgage insurance) that came with your original loan
• You’ve since gotten married or divorced, and you want to add or subtract someone from the loan
The answer may be “sooner than you think,” although it depends on the refinance program you’re looking for, the loan type, and if any penalties apply. It may seem foolish to refinance soon after you went through the process and paid closing costs on your original mortgage, but in some cases, it could save you big money over the life of the loan.
Although you can technically refinance immediately, some lenders may require you to wait months before refinancing with the same company. If taking advantage of better terms is your main consideration, the path may be clearer. Here are some mortgage refinance rules and time frames to consider:
• A cash-out refinance, in which you are borrowing extra funds against your home equity, typically has a six month waiting period (and you probably don’t have that much equity invested in that short timeframe anyway).
• If you went into mortgage forbearance or had your original loan restructured to allow you to skip or temporarily reduce monthly payments, you may be required to wait up to 24 months before refinancing.
• If your original mortgage was funded with an FHA loan and you want to refinance it with an FHA Streamline Refinance, you’ll be asked to wait 210 days from the original closing date.
• It’s typically easier to qualify for a straightforward rate and term refinance as they rarely have a waiting period.
• Even if your current mortgage rate is only slightly higher than today’s rate, a small drop could save you thousands of dollars over the life of your loan. You’ll reap more long term benefits if you refi sooner rather than later when rates might not be this good.
• Some loan products have penalties for prepayment if you refinance your loan within the first three to five years.
Taking out a mortgage can impact your credit report, and if you haven’t had your home for very long, you’ve probably not made enough monthly payments to boost your score yet. Applying for a refinance loan shortly afterward pings your credit report once again and could affect your eligibility. This could make it challenging to get a new loan to replace the old one or negatively impact the rate you’re offered.
Refinancing is totally worth it if the time is right, and it can be an easy, straightforward process when you work with an experienced local loan officer.
Once you’ve identified the property you desire, you and your real estate advisor will collaborate on drafting a purchase agreement. While many elements of the agreement adhere to standard guidelines, there are specific areas open for negotiation. The Northwest Multiple Listing Service offers standard purchase forms; however, the terms within these forms may vary and can be adjusted through negotiation.
What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a low offer just to see if the seller accepts, this often isn’t a smart choice, because the seller may be insulted and decide not to negotiate at all.
If you can be flexible on the possession date, the seller will be more apt to choose your offer over others.
Often, the seller plans on leaving major appliances in the home; however, which items stay or go is often a matter of negotiation.
Typically, you will not be present at the offer presentation. Your real estate advisor will present it to the listing agent and/or seller. The seller will then do one of the following:
Accept the offer
Reject the offer
Counter the offer with changes
By far, the most common action is the counteroffer. In these cases, the experience and negotiation skills of a Realogics Sotheby’s International Realty real estate advisor are powerful in representing your best interest.
When a counteroffer is presented, you and your real estate advisor will work together to review each specific area of it, making sure to move forward with your goals in mind and ensure negotiation of the best possible price and terms on your behalf.
A written brokerage services agreement that serves as a contract between the broker and the buyer.
The method used to compute time in purchase and sale agreements with specific parameters around what is considered the starting day, a business day, and end-of-day time.
A deposit made to a seller that represents a buyer’s good faith to buy a home.
When a buyer wants to submit an offer on a property for which there may be competing offers, the buyer may want to provide an escalation of the offer price to compete against other offers.
A neutral third party oversees and confirms the financial portion of the transaction. This is required in Washington state.
Hazard insurance, or homeowner’s insurance coverage, in Washington state protects your property against damage caused by fires, storms, earthquakes, or other natural events.
An assessment of the seller’s home to reveal any issues or faults in the property to the buyer before closing.
The Northwest Multiple Listing Service consolidates the region’s real estate data so that licensed agents have access to streamlined search criteria, showing instructions, legal documents, and property sales history.
A home that is not for sale or is for sale but the seller has chosen to not list it on multiple listing services (MLS).
A letter from a lender stating how much they are willing to loan you for your mortgage after they have checked your finances, credit score, and any other information pertinent to receiving a loan.
An assessment of the seller’s home before an offer has been made to uncover any necessary repairs or issues.
A mortgage letter provides an estimate of the amount you can borrow for your home or refinance loan.
Documents provided by a condominium seller with pertinent information, such as homeowner’s association budget, restrictions or guidelines of the building, unpaid dues by the previous owner, and more.
We change and evolve, just like you. And we understand that today you’re asking a lot of your home—and it needs to change and evolve, too. At Realogics Sotheby’s International Realty, we offer the intelligent solutions you seek. Featuring powerful search, customizable market data, community insights, and award-winning video, rsir.com offers a suite of online tools that make your real estate journey tangible. And we’re always working on the next thing—that next piece of the puzzle that will make it easier for your trusted real estate advisor to connect you with what’s next. Your buying and selling journey is only a click away.
As a leader in the luxury real estate industry, Sotheby’s International Realty® is able to anticipate trends. Our priority remains to present listings in the best possible manner and to provide a superb end-user experience however buyers prefer to search for their new home. Virtual technology has been at the forefront of our marketing strategy for several years and comes as naturally to us as our commitment to high-quality service.
Powered by the amazing visuals produced by our local affiliates all over the world, the Sotheby’s International Realty Apple TV app allows you to share the pleasure of browsing our outstanding properties with your friends and family in the comfort of your own home. A premium real estate experience unlike any other.
More than half of home searches start on mobile devices; this makes perfect sense. Our phones and tablets travel with us everywhere we go. SIR Mobile is our user-friendly, GPS-enabled real estate listings app that puts our global collection of luxury homes and expert real estate agents in the palm of your hand.
By helping buyers visualize the potential of a room and make the home appeal to a targeted audience, virtual staging allows agents to add furniture, rugs, and even paint to photos of a home. Global real estate advisors will post the virtually staged photo or 3D tour online with a home’s listing from the convenience of your phone.
As the market continuously shifts between highs and lows, a seller’s market (defined as having one to three months of inventory) and a buyer’s market (defined as having six or more months of inventory), and cold and hot conditions, our advisors understand the importance of an array of strategies to guide you to success no matter the market conditions.
As a buyer, you may hold more power if it’s a buyer’s market with more supply than there is demand, or you may be facing a seller’s market wherein you’ll be competing with many other buyers looking to make a purchase. Your RSIR advisor will have a thorough understanding of the current market conditions and be prepared to guide you through the strategies that will help you stand out from the crowd as a serious, qualified buyer.
The first step is to assemble a strong financial package. A seller is more likely to choose your offer when it has solid financing. You can pay all cash and waive all contingencies; however, if that is not for you then consider other strategies:
• Get pre-approved for a loan to prove your finances are solid.
• Work with a local lender or one preferred by the listing agent to gain an advantage.
• Opt for conventional financing and increase your earnest money amount.
• Ask the lender to call the listing agent and discuss your financial strength as a buyer.
• If the appraisal comes in low, be prepared to potentially be creative on your loan program to ensure closing on time.
Present an irresistible offer. Matching what the seller desires in price, terms, and closing timeline will speak volumes when you make an offer. Your agent can help you find out which terms matter, including:
• Be prepared to offer at list or, if the list price is low, offer at a price based on comparables.
• Discuss with your broker shortening contingency periods or waiving them altogether.
• Be flexible about the closing date, if that will win you an advantage.
• During the negotiation, think carefully before renegotiating price or credits after an inspection (the seller might opt for the back-up offer).
Go the extra mile. Price and terms are one thing, but you may be surprised to learn they don’t always win. When selling a foreclosure, banks sometimes choose the first offer that comes in; however, a homeowner might be swayed by a more personal touch.
• Move quickly to get the offer completed, so your agent can submit it by the offer deadline.
• Discuss when to strategically submit your offer.
• Summarize key offer terms and highlight the ones that matter in a term sheet.
• Include a photocopy of the earnest money check to show you’re serious.
• Working with a seasoned, professional agent will indicate the promise of a seamless transaction.
A contingency is a clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding.
There are contingencies in almost every real estate contract to protect the buyer and the seller. There are several different types of real estate contract contingencies. The first of these is a mortgage contingency. This means there is a stipulation in the contract that says a buyer will obtain a mortgage loan for a specific amount within a certain time period. Once the mortgage loan is obtained, that contingency is removed from the contract. If the buyer is not able to obtain the mortgage, it is possible to withdraw the contract without being penalized. This is a contingency that protects the buyer.
Another contingency that is put into place to protect the buyer is a home inspection contingency. If there is a home inspection ordered and the house does not pass due to factors like termite damage or faulty wiring, the buyer has the right to exit the contract and receive any deposits or earnest money back. If the issues can be corrected, the buyer can request these repairs. If the seller does not agree, the contingency cannot be removed and the contract is voided.
Another popular contingency to put into the contract is one that allows for the sale of the buyer’s current home. This will allow the buyer a specified amount of time to sell their current home before buying a new one. The contract will be voided with no penalties assessed if the current home does not sell. This protects the buyer from a situation where they would have to pay two mortgage loans at once. A contingency of this type also protects the seller. If the seller receives a second offer on the home that is more attractive than the first, they will be able to accept the new contract without facing a penalty. It is important to remember that contingencies should be reasonable requests. You do not want to lose a seller or a buyer because of unreasonable contingencies. Work closely with your agent and be fair.
Identifies buyer agent and signs Buyer Service Agreement.
Obtain a fully underwritten pre-approval letter and provide it to your real estate agent.
Makes offer to purchase. Upon acceptance, opens escrow and deposits earnest money.
Finalizes loan application with lender. Receives a Loan Estimate from lender.
Completes and returns opening package from title company.
Open Escrow and facilitate delivery of earnest money and provide receipt to all parties and lender.
Schedules inspections and evaluates findings. Reviews title commitment/preliminary report.
Provides all requested paperwork to lender (bank statements, tax returns, etc). All invoices and final approvals should be to the lender no later than 10 days prior to loan consummation.
Escrow officer or real estate agent contacts the buyer to schedule signing appointment.
Buyer consummates loan, executes settlement documents, and deposits funds via wire transfer.
Documents are recorded and the keys are delivered!
Chooses a real estate agent to represent their property and signs an Exclusive Listing Agreement.
Determines the value of the home with insight from the agent and a comparative market analysis.
Open title and request a legal description.
Prepares the home for sale by cleaning, decluttering, and making any necessary repairs, before staging or virtually staging the home.
Markets and show the home both online with photos, video, and 3D tours and in person.
Activates listing on the MLS and includes or provides proper documentation for prospective buyers including copy of legal description from Title and a Seller Disclosure.
Receive purchase offers and negotiate.
If applicable facilitate and provide Resale Certificate (condominiums).
Prepares for a home inspection with an inspection checklist.
Completes and returns opening package from title company, including information such as entitlements, easements and liens.
Orders any work for inspections and/or repairs to be done as required by the purchase agreement.
Escrow officer or real estate agent contacts the seller to schedule signing appointment.
Documents are recorded and all proceeds from sale are received.
Facilitate key’s to buyer upon confirmation of recording numbers.
Upon receipt of order and earnest money deposit, orders title examinations.
Requests necessary information from buyer and seller via opening packages.
Reviews title commitment/preliminary report.
Upon receipt of opening packages, orders demands for payoffs. Contacts buyer or seller when additional information is required for the title commitment/preliminary report.
All demands, invoices, and fees must be collected and sent to lender at least 10 days prior to loan consummation.
Coordinates with lender on the preparation of the CD.
Reviews all documents, demands, instructions and prepares settlement statements and any other required documents.
Schedules signing appointment and informs buyer of funds due at settlement.
Once loan is consummated, sends funding package to lender for review.
Prepares recording instructions and submits documents for recording.
Documents are recorded and funds are disbursed. Issues final settlement statement.
Accepts buyer’s application and begins the qualification process. Provides buyer with Loan Estimate.
Orders and reviews title commitment/preliminary report, property appraisal, credit report, employment and funds verification.
Collects information such as title commitment/ preliminary report, appraisal, credit report, employment and funds verification. Reviews and requests additional information for final loan approval.
Underwriting reviews loan package for approval.
Coordinates with escrow officer on the preparation of the Closing Disclosure, which is delivered to buyer at least 3 days prior to loan consummation.
Delivers loan documents to escrow.
Upon review of signed loan documents, authorizes loan funding.
Reviews all documents, demands, and instructions. Prepares settlement statements and other required documents.
Provided courtesy of First American Title.
The home inspection is a crucial step in the home buying process. It provides valuable insight into the condition of a property, going beyond just the appearance. The inspection examines the structural integrity, functionality of systems, and potential hidden issues within the home. Whether you’re a first-time homebuyer or expanding your investment portfolio, a comprehensive inspection can give you peace of mind and help you make an informed decision.
A pre-inspection is something that you would do if an offer review deadline is set by the seller. The reason you do a pre-inspection is two-fold:
1. Protects you from buying a home that may need repairs.
2. Provides you with a competitive edge from other potential buyers.
Pre-inspection ensures that your offer stands out because you are not submitting an offer with an inspection contingency.
If you find numerous issues during your preinspection, your real estate advisor will help you determine how to proceed. You may potentially negotiate the offer price based on the pre-inspection if you’re still interested in purchasing the home. If too many issues are found, the best course of action may be to simply walk away.
The official inspection of the home occurs after an offer has been made and is carried out by an inspector who will examine everything from the plumbing, electrical wiring, structure, roof, and more. Any issues revealed can lead to a renegotiation of the offer or a request that the seller make repairs before the close of the transaction.
If you have a home inspection contingency in your contract, this will allow you to back out of a purchase if major issues are found during the inspection. Getting so close to the finish line and being presented with major problems in the home is not ideal, so pre-inspections are recommended if you’re concerned that there may be flaws in the home and you would like to be aware of these before reaching the final inspection.
In a hot market favoring sellers, an offer may be more enticing if an inspection is waived. You and your advisor can discuss the pros and cons of this approach and decide if it’s right for you, but buyers should be informed of the potential risks.
A seller’s disclosure discloses any details about the property that have not previously been discussed that a buyer would be interested in knowing. In other words, it is another layer of protection during the buying process. The disclosure encourages transparency, ensuring that a buyer has a clear picture of the home’s history and condition and everything from serious defects to clarifying what appliances will be included, if any, with the purchase.
Resale certification is provided when you’re purchasing a condominium residence. This documentation will include important information about the homeowner’s association budget, any fees or dues that have not been paid by the current owner, and the Covenants, Conditions, and Restrictions (CC&Rs) which lay out the rules and expectations of the building. Similar to a seller’s disclosure, a resale certification prepares condominium buyers with pertinent information about their new property. An HOA carries certain duties and financial responsibilities, and a resale certification will get you up to speed on those.
When purchasing a new construction home, a builder’s warranty, which covers features like flooring, plumbing, and general structure, will protect buyers for a certain period of time specified in the warranty. A builder warranty is not always included, so if you would like this extra layer of protection when making your purchase, your advisor can inquire about it. Make sure to carefully read the warranty as you’ll want to make sure you know exactly what is covered and for how long.
Your contract and any applicable government regulations determine who pays which closing costs. Your real estate advisor can explain these costs to you.
Lender’s title policy premium, if new loan; Owner's title insurance premium;
Escrow fee, one half;
Document preparation, if applicable;
Notary fees, if applicable;
Recording charges for all documents in buyer’s name;
Homeowner's Association transfer fee, one half;
All new loan charges (except those required by lender for seller to pay);
Interest on new loan from date of funding to 30 days prior to first payment date;
Assumption/change of records fees for takeover of existing loan;
Real estate agent's commission; *pending Buyer Service Agreement;
Escrow fee, one half;
Any loan fees required by buyer's lender per contract;
All loans in seller's name (unless existing loan balance is being assumed by buyer);
Interest accrued on loan being paid off, statement fees, reconveyance fees and any prepayment penalties;
Termite inspection and any termite repairs per contract;
Home warranty premium per contract;
Homeowner's Association transfer fee, one half;
Beneficiary statement fee for assumption of existing loan; Any judgments, tax liens, etc., against the seller;
Home warranty premium per contract;
Hazard insurance premium for first year; and
All pre-paid items, such as interest, or funds for an escrow account.
Recording charges to clear all documents of record against seller;
Property taxes & utilities: pro-rated to date title is transferred plus any delinquent taxes;
Any unpaid Homeowner's Association dues; and
Any bonds or assessments per contract.
At the end of your home-buying chapter, the next chapter of your life starts.
On the closing day itself, legal property ownership is transferred to your name. The mortgage amount is provided to the title company or by your lender. A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title. You will receive documentation with costs payable, including balance owing, legal fees, property transfer taxes, and other completion costs. The title company will pay the seller, complete any necessary documents, and register your home in your name.
On your closing day, your lender provides the mortgage money to the title company and you provide the down payment (minus your deposit) to your title company or attorney, as well as any remaining closing costs.
Title companies also often maintain escrow accounts―these contain the funds needed to close on the home―to ensure that this money is used only for settlement and closing costs, and may conduct the formal closing on the home.
At the closing, a settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs, and distribute monies. Finally, the title company will ensure that the new titles, deeds, and other documents are filed with the appropriate entities.
Most closings will take place at the escrow company, or one of our office locations, where all paperwork is signed and keys are exchanged. Remote closings or fully contact-less closings can also be arranged, with the assistance of online documentation, e-signature programs, and remote notaries.
Each Office is Independently Owned and Operated.