Home Sellers - 2

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Guide. Page 1: Choosing a Real Estate Agent Page 2: The Lender Page 3: Home Seller’s Process Page 4: What is Escrow Page 5: Escrow Process Page 6: Escrow Q&A Page 7: Escrow Q&A - Continued Page 8: Life of an Escrow Page 9: Title Insurance Process Page 10: Holding Title Page 11: Payment Procedure Page 12: Seller’s Cost Sheet Page 13: 7 Tips before Selling your Home Personal Notes Page 20 & 21: Glossary

Transcript of Home Sellers - 2

  • Guide.S

  • SHome Buyers GuideTable of ContentPage 1: Choosing a Real Estate AgentPage 2: The LenderPage 3: Home Sellers ProcessPage 4: What is EscrowPage 5: Escrow ProcessPage 6: Escrow Q&APage 7: Escrow Q&A - ContinuedPage 8: Life of an EscrowPage 9: Title Insurance ProcessPage 10: Holding TitlePage 11: Payment ProcedurePage 12: Sellers Cost SheetPage 13: 7 Tips before Selling your Home

    Page 14: 15 Home Selling tipsPage 15: 15 Home Selling tips - ContinuedPage 16: Presenting your homePage 17: Maintenance and RepairPage 18: Moving and Packing TipsPage 19: Moving Checklist

    Page 20 & 21: Glossary

    Personal Notes

    All information contained in this book is for informational purposes and is not intended to offer advice - legal, financial or otherwise - about specific situations or problems. This information is a general guideline only, consumers are urged to consult legal councel regarding their rights and responsibilities under state and federal law. The information contained is deemd reliable but not guaranteed.

    CalCounties TitleNation Company - is a registered trademark of CalCounties TitleNation Company. All Rights Reserved

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    Home Sellers GuideChoosing A - ReAl estAte Agent

    Listing your home with a qualified agent can make all the difference in the world when it comes to selling your home. Selling a home is a lot of work, therefore having an agent is very helpful.

    Here are a few reasons why you should use an agent when selling your home:

    -> An agent will assist you with negotiations with the buyer

    -> An agent know the market and can help you set a reasonable price

    -> An agent has better resources for locating buyers and information on recent sale prices of homes around you

    -> An agent has a broader range of advertising options

    -> An agent can screen for buyers who are financially able to purchase your home

    -> An agent will save you time!

  • Home Sellers Guidethe lendeR

    There are many advantages of working with a reliable, professional lender. Some of their very importat services are as follows:

    Pre-Qualification of all Prospective Buyers: Your lending professional should pre-qualify each potential buyer to ensure that they are sufficiently qualified by thorough examination of their credit status and current financial situation. This is extremely important to eliminate wasted time negotiating with unqualified buyers.

    Ability to find the right Loan at Competitive Prices: A reliable lending professional will shop for the best loan and the best possible price. This affords the borrower the freedom to select the loan best suited for their needs at the best pricing, without having to shop all over town.

    Efficient Follow-up and Teamwork: Once the transaction has been negotiated, the lender works hand in hand with the other support team members to ensure that the loan is approved and funded in a timely manner. They locate and handle any unforeseen situations before it becomes a problem, and keeps you informed of all important details along the way.

    A Good Lender will Handle Potential Buyers with Care and Confidentiality!

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  • Home Sellers Guidehome selleRs PRoCess

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    Home Sellers

    Chose Realtor List your Home Schedule an open House

    Review Offers Accept Purchase Agreement

    Open Escrow

    Chose Escrow and Title Company

    Deposit Ernest Money

    Sellers Transfer Disclosure Statement

    PreliminaryTitle report

    Secure Lender

    Begin LoanProcess

    Property Inspection

    PropertyAppraisal

    Purchase Home Owners Insurance

    Loan Approval

    Remove Financial Contigencies

    Closing Escrow

    Deposit Balance of Down Paymentto Escrow

    Sign Closingand Loan PaperWork

    Record Documents

    Escrow ClosedLoan Funding

  • Escrow is a way of transferring or exchanging property and/or money using a neutral third party. In many jurisdictions, escrow agents constitute a distinct profession with its own training and accreditation requirements. In other jurisdictions, such as Canada, escrow functions may be performed by attorneys. In either case, the escrow process is covered by significant regulation and protection through the use of licensing and/or bonding.

    Escrow is most commonly associated with real estate transactions. When a home or property changes hands, the seller of the property transfers the property title to the escrow agent. Similarly, the buyer either transfers funds or has a bank transfer mortgage proceeds to the escrow agent. When all conditions of the purchase agreement are met, the escrow agent assigns the property title to the purchaser and distributes the funds to the seller.

    An escrow is created when money and/or documents are deposited with the escrow agent. The escrow agents authority is strictly governed by writteninstructions, mutually agreed upon by the parties involved. The instructions direct the escrow holder to perform duties necessary to complete the transaction. A few of the tasks which may be required are:

    -> Receive and deposit earnest money -> Order information for payoff of existing liens -> Calculate and/or prorate taxes, liens, interest, rents, and insurance policies -> Make arrangements for title insurance protection for the buyer and lender -> Prepare and/or receive documents relating to the escrow -> Request and receive funding from new lender when conditions have been satisfied -> Arrange for recording of the conveyance documents and any other legal instruments required to transfer title to the property pursuant to the terms of the purchase agreement -> Close the escrow and disburse funds as agreed upon in the instructions -> Prepare a closing statement for the parties showing disposition of funds

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  • What Information is Needed?Confidential Statement of Identity Because many people have the same name, the statement of identity is used to identify the specific person in the transaction by determining date of birth, social security number, etc. The statement form is necessary and the information is kept confidential.

    Provide the escrow holder with the name, address and phone number of your lender

    as soon as possible after opening escrow.

    Hazard/Fire Information If you are purchasing a single family, detached home, or in some cases, a town home, be sure to order your fire/hazard insurance once your loan has been approved. You should immediately begin looking for an insurance agent; not all companies can write fire hazard insurance. Call your escrow holder with the insurance agents name and phone number so that he/she can make sure the policy complies with your lenders requirements. You must have your insurance in place before the lender will fund money to the title company.

    Holding Title Page 10 shows common ways of holding title to help you understand the criteria for determining how you wish to hold title to your home. The escrow holder will need this information in order to prepare the grant deed, and your lender will need this information to prepare loan documents. We suggest you consult an attorney, tax consultant, or other qualified title professional before you decide.

    What is Close of Escrow?The close of escrow signifies legal transfer of title from the seller to the buyer. Approximately three days before the scheduled close of escrow date, the loan documents are executed by the buyer. The new lender takes 24 to 72 hours to review the final executed documents and then wires the loan funds to the title company. Escrow collects the remainder of the buyers down payment and closing costs. When loan funds are wired, the file is then set up to record (a legal transfer of title from the seller to the buyer). The escrow holder then handles all final accounting, issuance of official closing statements and disbursement of any remaining proceeds to all parties.

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    Home Sellers GuideesCRoW - Q & A

    Q) How do I Open an Escrow?A) Generally the buyers Real Estate Agent will open the escrow. As soon as you execute the purchase agreement, the selling agent will place the buyers initial deposit, if any, into the escrow account or into the Real Estate Brokers trust account.

    Q) What Information will I Need to Provide?A) You will be asked to complete a Statement of Identity (SI) as part of the necessary paperwork. Because many people have the same name, the SI is used to correctly identify the specific person in the transaction through such information as date of birth, social secu-rity number, previous addresses, etc. This information is kept confidential and is required to provide title insurance.

    Q) What do I Need to do Before my Appointment to Sign Escrow Papers?A) All parties signing the documents must bring proper identification: either a valid drivers license, identification card, or current passport. This is needed to verify your identity by the notary public. It is routine, but necessary step, for your protection.

    Q) When and Where do I Sign Escrow Instructions?A) Your Escrow Officer or Real Estate Agent will contact you to make the appointment for you to sign your escrow instructions, Grant Deed and f