:
Home Buying Process : Your lender is an important part of the team involved in the timely closing of your escrow. We recommend that you choose a Lender that you feel comfortable with and that you can count on to competently handle the new loan process from pre-qualification to funding on time. It is very important that you provide your Lender with any documentation or paperwork that they ask for as soon as possible. Once you apply for your new loan, your Lender will proceed with the processing and approval of your new loan, including the following steps:
If you have any questions about your loan, loan costs or the Lender's
requirements during this process, contact your loan officer for assistance. We recommend that you choose an insurance agent and get a quote for
your homeowner's policy as soon as possible. In order to give you an
accurate quote, your agent will need to know some information about
the property, the amount of your new loan on the property and the estimated
close of escrow date. If they need information that you are not sure
about, just have them contact your agent at Coldwell Banker®
Best Sellers, we will be happy to help. It is important for
your Lender to have your insurance agent's name, phone number and the
estimated amount for your homeowner's insurance policy, so be sure to
call them as soon as you have this information. If you are obtaining a new loan, your Lender will order an appraisal on the property. (If you are not obtaining a loan, you may request an appraisal in your purchase agreement.) After inspecting the property, the appraiser will issue an appraisal report, with an estimate of value stated for the property, based on the recent sales of other comparable properties. It is possible that the appraiser will note conditions of the property that the Lender will require to be remedied prior to making your loan, this is most typical if the new loan is an FHA or VA loan. If the appraisal amount is less than the agreed upon purchase price, you, as the Buyer, have the right to cancel the purchase. Your Lender will provide you with a copy of the appraisal, at your request. ESCROW AND TITLE SERVICES After acceptance of your Purchase Agreement, an escrow will be opened with a Title and Escrow Company to facilitate the closing of your transaction. The Buyer's earnest money will be deposited to the escrow trust account and be held as a credit towards the purchase price. The escrow officer will prepare escrow instructions to be signed by all parties, the terms of which should match those accepted in your Purchase Agreement. The Title Company will research the title history of the property and issue a Preliminary Title Report for your review. The report will typically show any outstanding liens (such as the Seller's current loan or current taxes due), any utility or other easements of record, and the CC & R's (Covenants, Conditions and Restrictions), if any are of record for the property. The Preliminary Title Report is an offer to issue "title insurance" on the property, subject to any items of record that will remain on title after the close of escrow. The "Owner's" policy of title insurance protects the Buyer against any claims that may be made on the title of your property that were not disclosed in the Preliminary Title Report. Your new Lender, if you are obtaining a loan secured by the property, will require their own separate "Lender's" policy of title insurance, protecting their interest in the property. There are various types of title insurance policies, with different coverages and different costs. Please ask your escrow officer to explain the different policies so that you can obtain the type of policy that you want. If the Seller has agreed to pay for the "Owner's" policy, you may have to pay the difference in cost if you choose other than the standard coverage. Your Agent will review the preliminary title report and escrow instructions with you before you sign them. At the close of escrow, the escrow officer is responsible for collecting and transferring to the parties all of the documents necessary to transfer title and to obtain the new loan. He or she is also responsible for collecting the correct amounts of money from each party to cover the purchase price and the allocated costs of each party. If the Seller has an existing loan on the property, the escrow officer will order a "demand" statement from the Lender and pay off the loan according to the Lender's instructions, and record a reconveyance for the paid off loan, removing it from the title record. When everyone has signed and all money has been collected and disbursed, the Escrow Company will record the transfer of ownership with the County Recorder and escrow will close. If you have any questions about title insurance, closing costs or fees,
or about the different ways to take title (called vesting), ask your
escrow officer. If you have any concerns about the legal or tax effects
of the transaction, you should contact your attorney or tax advisor. In our experience, we find that many Buyers and Sellers find themselves at odds during the escrow period over the condition of the property and the negotiation and completion of repairs. We feel that a lot of stress and many potential misunderstandings can be avoided when the parties know what to expect. In any real estate transaction in the State of Nevada, the Seller and the Agents are obligated to inform the Buyer of any defects of which they have knowledge. The Seller is also obligated (unless they are exempt) to provide the Buyer with a completed "Seller's Real Property Disclosure Form". However, neither the Agents nor the Seller are experts, and, existing or potential problems are not always visible or known to any of these parties at the time an offer is made. The clauses in the Purchase Agreement that refer to disclosures, inspections and "Due Diligence" are included in the contract to give the Buyer the opportunity and the right (within a specified time limit) to hire any licensed experts that he deems necessary to perform inspections and to disclose to him any items of concern. The professional inspections are intended to let both parties to the transaction know the condition of the property and satisfy themselves as to the condition of the property prior to the close of escrow. The process for informing and satisfying all parties as to the condition
of the property may seem time consuming and burdensome to some Buyers
and Sellers, but the intention is to make sure that all parties proceed
to close of escrow with full knowledge and agreement. The intent is
not to make sure that all properties that change hands are in perfect
or like new condition, but simply that the Buyer is aware of and satisfied
with the condition of the property they are purchasing. The Buyer will need to contact each of the necessary utility or service
companies to initiate or change the service to your new home. We have
found that if you take care of this ahead of time, it saves you any
inconvenience during your move. See the enclosed is a list of all the
companies and their phone numbers.
THE STEPS TO THE PROCESS ARE GENERALLY AS FOLLOWS: 1. The parties order the agreed upon inspections to be performed by professionals of their choice within the time limits allowed in the contract. The Agent will assist the parties with timeframes, scheduling inspections and with obtaining access to the property at the scheduled times. 2. Inspectors perform inspections and issue a written report to the Buyer detailing their findings regarding the condition of the property. Many times, an inspector will note items that were already known to the Buyer or that are acceptable to the Buyer, such as cosmetic items, items of normal wear and tear for the age of the home or maintenance recommendations. 3. The Buyer reviews the reports. The Selling Agent will prepare, at the Buyer's request, an addendum to the contract that will specify that the inspections have been performed and the buyer is satisfied with the condition of the property or, that the Buyer requests the Seller to complete specific repairs. The addendum should be delivered to the Seller's Agent with a copy of any inspection reports. 4. If the Buyer requests repairs, this opens a negotiation between Buyer and Seller. Seller is not obligated to complete or pay for any repairs that will exceed the previously agreed upon dollar amount, and buyer is not obligated to complete the purchase if he is not satisfied with the property condition. 5. Seller will respond to Buyer's request for repairs by either agreeing to them or by offering a counter proposal. The Seller may need some time in order to get bids and / or further information regarding requested repairs. Sometimes, due to time or other considerations, the parties may agree that the Seller will credit to the Buyer a specific amount in lieu of completing a requested repair (check with your Lender before agreeing to this). Once the negotiation for repairs is completed between Buyer and Seller, the parties follow the terms of the agreement and proceed toward close of escrow. 6. Upon completion of repairs as agreed, Seller will give buyer proof of completion. If Buyer wishes to have a re-inspection of repaired items, the Buyer or his Agent should notify the original inspector at this time. Note: Some inspectors may charge for re-inspections. 7. In the event that the parties cannot negotiate
an agreement for the completion, cost or waiver of repairs, the Buyer
has the right to rescind the contract and cancel the escrow. If this
happens, both parties will be asked to sign cancellation instructions
prepared by the escrow company, and the Buyer's deposit will be returned,
less any expenses incurred to date of cancellation. After escrow is
cancelled, Seller is free to sell the home to another Purchaser. The buyers and their agents usually perform a walk through inspection
of the property within a few days prior to close of escrow. The purpose
of a walk through is for the buyer to satisfy himself that the property
is in the condition agreed to or specified in the purchase contract,
the seller's disclosure, the professional inspections and in any addendum
for repairs that have been negotiated by the parties. Systems such as
heating, A/C, electrical, plumbing, built-in appliances, etc. should
be in working order at the time of the walk through, unless previously
disclosed and accepted by buyer. All personal property items and fixtures
that were included in the purchase should be present. The buyer will
complete a walk through inspection form provided by the agent, and both
parties will sign it. The seller may or may not be present at the time
of the walk through. It saves everyone a great deal of time and stress,
if the seller takes care to make sure that any necessary repairs are
completed prior to the walk through. Seller should also make sure that
all utilities are left on for the walk through. If there are repairs
to be done as a result of the walk through, they should be completed
as quickly as possible, so that close of escrow is not delayed. YOUR AGENT'S ROLE REGARDING PROPERTY CONDITION Buyers and Sellers should be aware that, although we will disclose to you any conditions that we know about, or that we become aware of prior to the close of escrow, a real estate Agent is not considered to be an expert on any matters pertaining to the condition of the property. It is not our role as your Agent to advise you as to the condition of the property (we leave that to the experts). That is why we strongly recommend that Buyers and Sellers use licensed professionals of their own choice to inspect and advise them on any matters of concern to them. The role of your Agent in this process is to assist you with scheduling and arranging access to the property for the completion of inspections or repairs. In addition, our role includes assistance with preparing any requested addendum to the contract and in presenting the addendum to the Agent of the other party. Both parties should be aware that, as stated in the contract, that any negotiations for responsibility, completion or payment of requested repairs are strictly between the Buyer and Seller. While we will assist you with negotiation and scheduling, we will not take responsibility for, contract for, complete or pay for repairs of any kind. When we are asked by our clients for a recommendation for professionals
or service people during the course of a transaction (this might include
Property Inspectors, Licensed Contractors or Engineers, Pest Control
Services, Handymen, Cleaning Services, Accountants or Attorneys, Lenders
Insurance Agents or other) we may give you names or a list of names.
However, in no way do we as your agent specifically recommend or endorse
any person or company in particular, and you are not obligated to hire
or use any person or company other than one of your own choice. We will: We will not: IMPORTANT INFORMATION FOR OUR BUYERS As your agent, we want you to fully satisfy yourself prior to close
of escrow if you have any questions or concerns about the property you
are purchasing. We would be happy to provide you with a list of who
to contact in order to answer your questions and we encourage you to
do so if you have any concerns. In some cases, the licensed professional
or County or State Department that we have indicated may be able to
refer you to another party for further information. |