Home Buying Process

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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

Needs/Wants Checklist

Introduce Buyer to Lender

Setup Buyer’s Toolkit

Setup Initial Home Tour(s)


Part 2: Offer Process ●

Prepare and review Buyer CMA

Call Listing agent and review offer questions with them

Be sure all agency docs are signed properly

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

Review all seller reports and disclosures with client

Verify contingency periods, rates and COE with Lender

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

Common Interest Development (CID) Addendum

Trust Advisory Intero Affiliated Business Disclosures proof of funds

Prepare offer letter to listing agent / sellers

Schedule offer presentation

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


Part 3: Initial Escrow Period ●

Create contact list with lender, escrow officer

Give copy of contract to office escrow coordinator

Give copy of contract to client ○

Record contingency dates in calendar

Report sale to title company

0 to 5 days

Note escrow dates

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

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

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

Get deposit to escrow company

Add copy of listing and listing brochure to file

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

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.

Have all changes been put in writing?

Review HOA docs ○

0 to 5 days

Review if provided before offer submitted

Permit search ○

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!

Confirm Property Insurance Conditions

Get copy of buyer’s deposit check receipt from title

Have all parties signed the TDS correctly?

Have all parties signed and received disclosures & reports?

Prelim Termite report Geological Environmental Earthquake Roof

Create repair request (If Applicable)

Part 1 of 3

5 to 15 days


Part 4: Contingency Removal ●

Have all changes been put in writing?

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

Does lender require clearance to close?

Remove Contingencies if applicable

Confirm possession / rent back time frames with listing agent

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?

Order home warranty

Finalize due dates for: ○





Part 3 of 3

5 to 15 days


Part 5: Close ●

Buyer to confirm all loan terms with lender

Confirm loan doc delivery to title company

Interview moving companies

Select move date and moving company

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

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

Confirm with escrow ○

Part 1 of 3

Buyer funds have been received the day before closing

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

Schedule sign off with escrow officer and buyers

Review buyer’s final closing statement with escrow officer

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

Remind clients to bring ID to sign off

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

Go to sign-off on specified date

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.

Coordinate key exchange at Close of Escrow

Take photo with seller in front of sold sign

Verify MLS has proper date for Close of Escrow


Part 7: After Close of Escrow ●

Advise buyers to change locks

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

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)

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

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). ○ ○ ○

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 ○ ○ ○ ○

Home Warranty

Buyer Pay ○ ○ ○

Escrow Fee Title Fee County Transfer Fee City Transfer Fee

Buyer or Seller Pay depending on contract ○

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




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


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