Home Sellers 2

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Guide to help home sellers, questions, answers, from Cal Counties Title Nation Division Manager Sara Forkel

Transcript of Home Sellers 2

  • 1.S Guide.

2. S Page 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 Home BuyersTable of Content Guide Page 14: 15 Home Selling tips Page 15: 15 Home Selling tips - Continued Page 16: Presenting your home Page 17: Maintenance and Repair Page 18: Moving and Packing Tips Page 19: Moving Checklist Page 20 & 21: Glossary Personal NotesCalCounties TitleNation Company - is a registered trademark of CalCounties TitleNation Company. All Rights Reserved 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 areurged to consult legal councel regarding their rights and responsibilities under state and federal law. The information contained is deemd reliable but not guaranteed. 3. Home Sellers GuideChoosing A - ReAl estAte AgentChoosing A - ReAl estAte AgentListing your home with a qualified agent can make all the difference in theworld 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 options01-> An agent can screen for buyers who are financially able to purchase your home-> An agent will save you time! 4. Home Sellers Guidethe lendeRThere 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 ensurethat they are sufficiently qualified by thorough examination of their creditstatus and current financial situation. This is extremely important toeliminate 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 bestthe lendeRpossible price. This affords the borrower the freedom to select the loan bestsuited for their needs at the best pricing, without having to shop all overtown.Efficient Follow-up and Teamwork:Once the transaction has been negotiated, the lender works hand in handwith the other support team members to ensure that the loan is approvedand funded in a timely manner. They locate and handle any unforeseen 02situations before it becomes a problem, and keeps you informed of all important details along the way.A Good Lender will Handle Potential Buyers withCare and Confidentiality! 5. Home Sellers Guidehome selleRs PRoCessHome Sellers Chose RealtorList your HomeSchedule an openReview OffersAccept PurchaseHouseAgreement home selleRs PRoCessOpen Escrow Chose EscrowDeposit ErnestSellers Transfer PreliminarySecure Lender and Title Money DisclosureTitle report Company Statement Begin LoanPropertyPropertyPurchase Loan Approval Process InspectionAppraisal Home Owners Insurance 03 Remove Financial ContigenciesClosing Escrow Deposit Sign ClosingLoan FundingRecord Escrow Closed Balance ofand Loan PaperDocuments Down PaymentWork to Escrow 6. Home Sellers GuideWhAt is - esCRoWEscrow is a way of transferring or exchanging property and/or money using aneutral third party. In many jurisdictions, escrow agents constitute a distinctprofession with its own training and accreditation requirements. In otherjurisdictions, such as Canada, escrow functions may be performed by attorneys.In either case, the escrow process is covered by significant regulation andprotection through the use of licensing and/or bonding.Escrow is most commonly associated with real estate transactions. When a homeor property changes hands, the seller of the property transfers the property titleto the escrow agent. Similarly, the buyer either transfers funds or has a banktransfer mortgage proceeds to the escrow agent. When all conditions of the WhAt is - esCRoWpurchase agreement are met, the escrow agent assigns the property title to thepurchaser and distributes the funds to the seller.An escrow is created when money and/or documents are deposited with theescrow agent. The escrow agents authority is strictly governed by writteninstructions, mutually agreed upon by the parties involved. The instructionsdirect the escrow holder to perform duties necessary to complete thetransaction. A few of the tasks which may be required are: -> Receive and deposit earnest money -> Order information for payoff of existing liens 04 -> 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 otherlegal 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 theinstructions -> Prepare a closing statement for the parties showing disposition offunds 7. Home Sellers GuideesCRoW PRoCessWhat Information is Needed?Confidential Statement of Identity Because many people have the same name, thestatement of identity is used to identify the specific person in the transaction bydetermining date of birth, social security number, etc. The statement form isnecessary and the information is kept confidential.Provide the escrow holder with the name, address and phone number of your lenderas soon as possible after opening escrow.Hazard/Fire Information If you are purchasing a single family, detached home, or inesCRoW PRoCesssome cases, a town home, be sure to order your fire/hazard insurance once your loanhas been approved. You should immediately begin looking for an insurance agent;not all companies can write fire hazard insurance. Call your escrow holder with theinsurance agents name and phone number so that he/she can make sure the policycomplies with your lenders requirements. You must have your insurance in placebefore the lender will fund money to the title company.Holding Title Page 10 shows common ways of holding title to help you understandthe criteria for determining how you wish to hold title to your home. The escrowholder will need this information in order to prepare the grant deed, and your lenderwill need this information to prepare loan documents. We suggest you consult anattorney, tax consultant, or other qualified title professional before you decide.05What 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 loandocuments are executed by the buyer. The new lender takes 24 to 72 hours to reviewthe 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. Whenloan funds are wired, the file is then set up to record (a legal transfer of title from theseller to the buyer). The escrow holder then handles all final accounting, issuance ofofficial closing statements and disbursement of any remaining proceeds to allparties. 8. Home Sellers GuideesCRoW - Q&AQ) How do I Open an Escrow?A) Generally the buyers Real Estate Agent will open the escrow. As soon as you execute thepurchase agreement, the selling agent will place the buyers initial deposit, if any, into theescrow 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 necessarypaperwork. Because many people have the same name, the SI is used to correctly identifythe 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 toprovide title insurance.Q) What do I Need to do Before my Appointment to Sign Escrow Papers? esCRoW - Q&AA) All parties signing the documents must bring proper identification: either a valid driverslicense, identification card, or current passport. This is needed to verify your identity by thenotary 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 foryou to sign your escrow instructions, Grant Deed and final papers. At this time, the EscrowOfficer will also tell you the approximate amount of proceeds you will receive for the sale ofyour home. 06Q) Whats the Next Step after Ive Signed the Closing Escrow Papers?A) After both parties have signed all the necessary instructions and documents, the EscrowOfficer will return the buyers loan documents to the lender for a final review. This reviewusually occurs within a few days of execution of the documents. After the review iscompleted the lender is ready to fund the buyers loan and inform the Escrow Officer.Q) How Long is an Escrow?A) The length of an escrow is determined by the terms of the purchase agreement and canrange from a few days to several months. An escrow often averages 30 to 45 days.Q) What is an Escrow Closing?A) An Escrow closing is the culmination of the transaction. It signifies legal transfer of titlefrom the seller to