Home Buying Process by sunitamerchia

MORE THAN REAL MORE THAN REAL ESTATE

ESTATE

SUNITA MERCHIA 408-916-6135 Sunitamerchia.com sunita@merchiarealty.com

Full Service Real Estate In addition to Real Estate, We has assembled all the services that can make your real estate transaction as smooth as possible. Resources such as title insurance, disclosure reports, warranties and mortgages are available to our clients

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Lender (Retail, Credit union and Mortgage Broker). Natural Hazard Report Selection. Title Company Inspection Companies Home Warranty company Investment Banker 1031 Exchange

The Big PictureInitial Consultation

Open Escrow Submit Home Information to Lender Remove Contingencies

Buying Process Loan Pre-Approval

Home Shopping

Find Home and Make Oﬀer

Inspections and Property Condition Review

Renegotiate Price

Loan Underwriting and Appraisal

Home Insurance

Final Walkthrough

Sign Oﬀ and Loan Funding

Record/Transfer Title & Close Escrow

The Buyer’s Step by Step Checklist Part 1: Initial Process ●

Initial Consultation

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Needs/Wants Checklist

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Introduce Buyer to Lender

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Setup Buyer’s Toolkit

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Setup Initial Home Tour(s)

Part 2: Offer Process ●

Prepare and review Buyer CMA

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Call Listing agent and review offer questions with them

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Be sure all agency docs are signed properly

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Read and highlight all reports and disclosures to prepare for review with client

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Review all seller reports and disclosures with client

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Verify contingency periods, rates and COE with Lender

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Home warranty, who orders? Sellers Coverage? Options? Copy of warranty info to file and client. ○

Part 1 of 2

If no warranty, sign waiver

Part 2: Offer Process ●

Part 2 of 2

Write purchase contract with deposit check ○

Fill out proper forms for deposit check delivery

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Common Interest Development (CID) Addendum

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Trust Advisory Intero Affiliated Business Disclosures proof of funds

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Prepare offer letter to listing agent / sellers

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Schedule offer presentation

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Have loan officer contact listing agent regarding buyer’s loan qualifications

Part 3: Initial Escrow Period ●

Create contact list with lender, escrow officer

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Give copy of contract to office escrow coordinator

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Give copy of contract to client ○

Record contingency dates in calendar

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Report sale to title company

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0 to 5 days

Note escrow dates

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Part 1 of 3

Send copy of contract

Send contract and prelim to lender

Part 3: Initial Escrow Period ●

Contact Lender, confirm time frames – appraisal, contingency

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Order further inspections (per termite, property or lacking inspections)

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Coordinate all with Buyer’s timing so everyone there at once

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Get deposit to escrow company

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Add copy of listing and listing brochure to file

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Check for pending sale on MLS, submit MLS copy to office escrow admin

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Is there a deposit increase? & RID?

Part 2 of 3

0 to 5 days

Part 3: Initial Escrow Period ●

Review reports and disclosures if any provided after the Offer acceptance.

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Have all changes been put in writing?

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Review HOA docs ○

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0 to 5 days

Review if provided before offer submitted

Permit search ○

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Part 2 of 3

Reviewed once before offer submitted

Get Homeowner’ insurance lined up

Part 4: Contingency Removal ●

Confirm Loan Approval Conditions and order docs to be there EARLY!

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Confirm Property Insurance Conditions

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Get copy of buyer’s deposit check receipt from title

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Have all parties signed the TDS correctly?

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Have all parties signed and received disclosures & reports?

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Prelim Termite report Geological Environmental Earthquake Roof

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Create repair request (If Applicable)

Part 1 of 3

5 to 15 days

Part 4: Contingency Removal ●

Have all changes been put in writing?

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Earthquake book signed and delivered? Make sure buyer has acknowledged receipt in writing.

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Does lender require clearance to close?

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Remove Contingencies if applicable

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Confirm possession / rent back time frames with listing agent

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Give buyer info from title company on how to take title

Part 2 of 3

5 to 15 days

Part 4: Contingency Removal ●

Is quitclaim (inter-spousal) deed necessary?

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Order home warranty

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Finalize due dates for: ○

Finance

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Property

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Appraisal

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Disclosures

Part 3 of 3

5 to 15 days

Part 5: Close ●

Buyer to confirm all loan terms with lender

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Confirm loan doc delivery to title company

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Interview moving companies

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Select move date and moving company

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Will all parties be in town for sign-off? ○

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Part 1 of 3

15 days

Power of attorney necessary?

Inform buyer of need for proper funds to close on time ○

Certified check, no personal check.

Part 6: Sign Off ●

Set time to review docs with buyers

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Confirm with escrow ○

Part 1 of 3

Buyer funds have been received the day before closing

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Review copies of all paperwork/work completion and clearances by contractors

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Schedule sign off with escrow officer and buyers

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Review buyer’s final closing statement with escrow officer

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Email soft copy of buyer’s final closing statement to buyer for review

Part 6: Sign Off ●

Part 2 of 3

Review transaction file with office escrow admin to make sure all docs have buyers/sellers signature ○

If incomplete, send incomplete docs to escrow for signature at sign off

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Remind clients to bring ID to sign off

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Remind listing agent of garage door openers, folder of all manuals/warranties/home docs before sellers pack these items

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Go to sign-off on specified date

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Arrange and schedule final walk through, have form signed

Part 6: Sign Off ●

Part 3 of 3

Give buyer date to start utilities ○

Water, PG&E, phone, cable, gardener, pool service etc.

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Coordinate key exchange at Close of Escrow

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Take photo with seller in front of sold sign

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Verify MLS has proper date for Close of Escrow

Part 7: After Close of Escrow ●

Advise buyers to change locks

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Call buyers to congratulate them on the purchase of property once recording has been confirmed

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Enjoy your beautiful home ○

Post a 5 star review of your realtor, share what an amazing home buying experience you had with your friends 😊

Lender.. How to select what is the best choice for you? *Retail Lender *Credit Union *Mortgage Broker.

Pre Approval Documentation Requirements ● ●

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List of addresses where you have lived for the last 2 years Federal Tax Returns for last two years with all pages and schedules. If you own a corporation or partnership, we’ll need all corporate/ partnership returns and K-1’s for past the 2 years. List of employers for last 2 years including job title, address, phone number, and dates of employment Driver’s license Current credit report to be obtained by lender Pay stubs for most recent 30 days W2’s for Last 2 years If not US citizen, copy of your green card (front and back) or applicable residency docs, work visa, and passport (photo page)

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If you currently own other Real Estate property, (second homes or rentals) we need the following for all properties: ○ ○ ○ ○

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Asset account statements covering most recent 2 months with all pages (even if they are blank pages. Not an internet summary page. PDF statements ok). ○ ○ ○

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Hazard insurance declaration page HOA payment coupon (if applicable) Most recent mortgage statement Most recent tax bill

Checking / Savings / CD Stock / Bonds / Investment Accounts / Retirement, 401K Account Any other liquid assets

Divorce Decree / Bankruptcy Documentation if applicable

Closing Costs: A Guide to Who Pays What in Northern CA County

County Tax per $1000

City Tax per $1000

Total Transfer Tax per $1000 Property Value

Other Funds You Need to Close ●

Buyer or Seller Pay depending on city ○ ○ ○ ○

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Home Warranty

Buyer Pay ○ ○ ○

Escrow Fee Title Fee County Transfer Fee City Transfer Fee

Buyer or Seller Pay depending on contract ○

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Lender Loan Origination Fee Lender Title Policy Fee Appraisal Fee Inspections Fee (If Buyer Inspection)

Largest Bucket of Funds Needed: ○

Reserve Funds (6-12 months based on Lender)

10 Things to Avoid Before Closing Your Mortgage Loan ● ● ● ● ●

Buy a big-ticket item: a car, a boat, an expensive piece of furniture Quit or switch your job Open or close any lines of credit Pay bills late Ignore questions from your lender or broker

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Let someone run a credit check on you Make large deposits to your accounts outside of your paycheck Cosign a loan with anyone Change bank accounts Take out any payday loans

Ways to Take Title: 1. Sole ownership

2. Tenants in common 3. Joint tenancy with right of survivorship

4. Community property

Professionalism

Reliability

Honesty and Integrity

Community Support

Constant Reachability

Great Follow-Up

Reputation Belief and Self

Continuous Customer Service

Great Negotiating Skills

Knowledge of the Job

Knowledge of the Market 25

Top Producing Agent.. ● ● ●

Rookie of the Year 2012 Top Referral Agent America’s Best. ○ Those ranked are among the top 1/2 of 1% of 1.4 million real estate professionals in the United States ○

2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, and 2020

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America's Most Honored Professionals ➢ 2018, 2019, and 2020 Chairman Circle ➢ 2016, 2017, and 2018 President circle ➢ 2012, 2013, 2014, 2015, 2019, and 2020

"In the world of business, the people who are most successful are those who are doing what they love.”

THANK YOU! Any questions? Contact Sunita Merchia (408) 916-6135 ❖ sunita@merchiarealty.com ❖ sunitamerchia.com