Cover

®

Home Transaction GuideMaryland, Virginia & Washington, DC

Part of the TRG Family of Companies

masettlement.com

Who is Mid-Atlantic Settlement Services?Mid-Atlantic Settlement Services Company is owned and operated by Title Resource Group (TRG).

TRG is a driving force in the title and settlement services industry. We are national in scope,

but locally staffed, with a wealth of experience in settlement services. We operate in 43 states

and provide closing services in all 50. TRG also operate the nation’s 6th largest title insurance

underwriter, Title Resources Guaranty Company.

Mid-Atlantic Settlement Services operates exclusively in the Maryland, Virginia, Northern Virginia

and Washington D.C. We are one of the largest settlement providers in the area handling

thousands of transactions each year. Our team of attorneys, processors and closers are ready

to serve your needs.

What is Title Insurance?Title Insurance is a form of indemnity insurance which insures against financial loss from defects

in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant

to protect an owner’s or a lender’s financial interest in real property against loss due to title

defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or

reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance

provided by the policy. Typically the real property interests insured are fee simple ownership or

a mortgage. However, title insurance can be purchased to insure any interest in real property,

including an easement, lease or life estate.

There are two types of policies—owner and lender. Just as lenders require fire insurance and

other types of insurance coverage to protect their investment, nearly all institutional lenders also

require title insurance [a loan policy] to protect their interest in the collateral of loans secured

by real estate. Some mortgage lenders, especially non-institutional lenders, may not require

title insurance. Buyers purchasing properties for cash or with a mortgage lender often want title

insurance [an owner policy] as well. A loan policy provides no coverage or benefit for the buyer/

owner and so the decision to purchase an owner policy is independent of the lender’s decision

to require a loan policy.

Buying or Selling a Home

BuyING:

■ you will receive instant e-mail updates on homes matching

your search criteria

■ Access to one of the top mortgage companies in the nation

■ A comparative Market Analysis so you know you are paying

the right price for your dream home.

■ After settlement you ownership interests will be protected

for years to come.

SellING:

■ your home will be protected by a home inspection plan

at NO CHARGe to you

■ A Home loan expert will verify the prospective buyer is

qualified to purchase your home

■ you will receive weekly updates on marketing the results

for the sale of your home

■ your home will be featured on more than 400 websites

■ you will have 24/7 online access to all of your paperwork

including the contract involved with the sale of your home

■ The security of knowing the home of your sale was properly

recorded when you use Mid Atlantic Settlement Services.

Call 703-361-9161 today for a private consultation including

a financial evaluation.

®

4 5

Before you begin selling or even looking for the home of your dreams, there are a few things

you should do first. Advanced preparation will help make the home-buying and selling process

smoother and much more efficient.

Organizing your Finances

• See a mortgage provider to get pre-qualified

• Get a free credit report at freecreditreport.com

• Make a household budget and figure out where money is coming from and where it is going

(income vs. bills/debt)

• Begin to gather items such as: last three years of income tax returns, bank statements for the last three months,

current copies of pay stubs, records of any past derogatory credit history that has since been paid off, and

records of any supplemental income you may have. If you are self-employed, you will need all business records

and income tax returns for the last three years

• If you have been divorced or filed for bankruptcy, make copies of the complete settlements

• Pay off minor debts if possible and do not incur new debt

Financial Incentives for Certain Professions

Many lenders and Realtors offer special programs for specific service industries and

professionals such as teachers, police and firemen, doctors, military etc. Be sure to check

and see if you qualify for this type of loan during your pre-qualification process.

Benefits of Working with a Real estate Professional

• They can offer solid advice on what you can afford and what your house is worth

• They have expert negotiating skills to insure you get the best price and/or do not overpay for you property

• They can use the MLS and numerous other sources to find information on properties listed for sale that might

suit your needs

• They can organize appointments with home sellers so you can view homes that you are interested in

• They are knowledgeable about the paperwork you will need to fill out when making an offer

• They will help in the arrangement of financing and are skilled negotiators

Table of Contents

Buying or Selling a Home with a Realtor ..................................................3

Getting Ready .....................................................................................................5

Benefits of Working with a Real estate Professional ...........................5

Buyer’s

Helpful Hints .................................................................................................... 6

Finding the Perfect Home lender Pre-qualification .........................7

Seller’s

Helpful Hints ................................................................................................... 8

Negotiation ...................................................................................................... 9

Setting the Price ...........................................................................................10

Before you Sell – Tips and Checklists ...............................................11-12

The Home Buying Process............................................................................ 13

unilateral Notice of Deposit Agreement ................................................. 15

Water Quality Addendum ....................................................................... 16–17

Maryland Residential Contract of Sale.............................................. 18–28

Virginia Residential Contract of Sale ................................................29–36

understanding the Settlement Statement (HuD-1) ....................38–43

House Comparison Chart ..................................................................... 44–45

Repair and Cleaning Checklist ........................................................... 46–48

Moving Tips .................................................................................................49–51

Glossary .......................................................................................................52–56

Getting ReadyMaking Buying and Selling a Home eASy

6 7

Please provide the title company with the following:

❑ Homeowners Insurance

Prior to closing, please provide us with your choice of homeowners insurance and your insurance agent’s

name and telephone phone number.

❑ Certified Funds

All transactions require certified funds.

❑ Wired Funds

If you wish to wire your funds needed for closing from your account directly to Mid-Atlantic Settlement

Services escrow account, please inform us prior to closing so that we may assist you in making the

arrangements.

❑ Identification

Don’t forget to bring your driver’s license and other form of official picture ID to closing. Two forms of ID

are required.

❑ Reviewing the Documents

If you wish to examine your loan documents prior to closing, please request that the mortgage company

provide the documents to the title company at least one day prior to closing so that we can process the

closing documents and provide you with copies for your review in a timely manner.

Avoiding Common Closing Delays

• All bills for inspections, repairs or other items to be paid at closing must be provided to us prior to closing.

• If you will not be present at closing to sign documents and you intend to use a power of attorney, you must

provide the original power of attorney to your closing officer at Mid-Atlantic Settlement Services prior to

closing for approval and recording of the document. (The lender will also need to approve the power of

attorney). On the day of closing, we’ll need a contact number in order to reach you to verify that you are

alive and well and have not revoked the power of attorney.

• Don’t forget to bring the termite certificate to closing (if applicable).

Buyer’s Helpful Hints

Most homebuyers will need a loan in order to purchase a house. It is crutial to go ahead and

get pre-qualified with your lender before you actually start looking at homes for two reasons.

First, your lender will help you determine your price range of homes you should be shopping for.

Second, it is common and customary to submit a preapproval letter with your offer on a home.

During the pre-approval process, the lender will verify credit worthiness and determine the price

range of houses you are qualified to purchase. There are numerous benefits to starting

an application at this time while you are deciding what to buy.

Benefits of Pre-qualification

Peace of Mind

If you are pre-approved, that’s just one less thing you have to worry about while you’re looking for

your new home.

Save Time

Once you are pre-approved, you will know what you can afford so you won’t waste any time looking

at homes that you aren’t qualified for.

Negotiating Power

Once you find the home you want and make an offer, being pre-approved will make your offer have

more impact than others, and you will be more likely to get the terms and price you desire.

Advanced Problem Solving

Often, buyers will need a little work to get their loan approved. The best time to get these problems

taken care of is prior to making an offer on a home.

Once you’re pre-qualified, or at least have the pre-qualification process started,

it’s time to start shopping for your new home!

Finding the Perfect Home lender Pre-qualifications

8 9

Please provide the title company with the following:

❑ existing lienholders(s)

As soon as possible, please provide Mid-Atlantic Settlement Services closing officer with the name of your existing

lienholders(s), along with their address and phone number. We will also need the loan numbers.

❑ Social Security Numbers

We will need the Social Security number of all owners of the property for tax reporting and because the lender will

require Social Security numbers for payoff information.

❑ Identification

Don’t forget to bring your driver’s license or other form of official picture ID to the closing.

❑ Wiring Information

Upon funding of the transaction, we will be glad to wire your proceeds into your account.

Please provide us with your wiring information if you choose to have your funds wired.

Avoid Common Closing Delays

• All bills for inspections, repair or other items to be paid at closing must be provided to us prior to closing.

• Don’t forget to bring the termite certificate to closing (if applicable).

Seller’s Helpful Hints

your real estate professional is an expert at negotiation. He/she will work closely with you to net

the most amount of money possible.

Home Inspections

Once a buyer has decided to make an offer on your home, it will usually be contingent upon a professional

inspection of the entire property. The inspector will check and make sure all of the home’s general systems are

working properly and report any items that need to be repaired. Your real estate professional will help negotiate

items the buyer may request to be repaired. If you have an AHS Home Warranty on your home you may be able

to use it for some repairs.

Negotiation

Perform a Self-Inspection

❑ Walk through the home and ask yourself, “Would I buy this home?”

❑ Try to remove any emotion and sentimentality you may have for the home and look at it objectively.

❑ Make a list of things you’d like to repair or change. Consult your real estate agent for contractor

names and numbers.

❑ Don’t make major changes that will cost more to do than you will get for them in return.

Consult your real estate agent before making any major changes to the home.

❑ Prioritize the list in relation to when the house is going on the market. (Projects that require numerous

resources such as contractors, remodellers, etc., should be first.)

❑ Prepare a timetable to have all repairs/changes made and stick to it.

Before you Sell — Tips and Checklists

Advanced preparation is the key to making the selling process smoother and more

efficient. Before you put your home on the market, there are a few steps you should

take to make sure it is ready to be seen by prospective buyers.

10 11

Now that your house is ready to be put on the market, it is vital that it is priced so that it sells

at, or close to, your asking price and so that it sells quickly. Houses are a market commodity

that should therefore be priced at market value. A common definition of market value is

“What a ready, willing buyer will pay, at a price a seller will accept. “ In order to determine the

market value of your home, your real estate professional will do a CMA, or Competitive Market

Analysis, of your home. The CMA compares your home to other houses in the area in terms of

square footage, amenities, condition and relative age. you may want to provide your real estate

professional with a list of items about the property that you feel are major advantages.

Here are a Few Other Things to Keep in Mind when Setting the Price

• The asking price is not the same as an appraisal price. An appraisal value is what the lender will loan someone

who wants to buy your home. The appraised value is a professional opinion of value at a moment in time.

• The asking price may not reflect the market value of the home.

• Asking or list price is not permanent. It may change and you should be prepared for negotiation.

• Homes sell for the most amount of money in the first 14 days it is exposed to the market

• Interest rates may impact how much a buyer is willing to pay for a home

• Location is a large factor in figuring out a realistic price for your home. The same home in a different

neighborhood would have a different price.

• It is also important to be clear on what exactly is included in the sales price. Any exclusion (such as removable

fixtures, decorative lighting, draperies, appliances, etc.) should be written into the contract.

Setting the Price

It’s true what they say about first impressions; they really are important. Now that your real estate

professional is actively marketing your home and will soon be bringing potential buyers to view

it, the home should be ready to show at all times. In addition to the steps you’ve already taken to

get your home ready to be put on the market, here are some extra tips to help ensure that your

home makes the best possible impression at showing.

General Tips for Showing your Home

❑ Make the home welcoming and inviting by keeping it clean and tidy.

❑ Everyone in the home should make their bed every morning.

❑ As soon as you are finished with dishes, place them in the dishwasher or stack them neatly in the sink.

❑ Once again, keep the home clutter-free. Buyers won’t purchase a home they can’t see. Get rid of anything

you don’t need or use.

❑ Eliminate bad smells by bathing your pets, cleaning out cat litter boxes frequently, shampooing the carpets,

dry cleaning your drapes, emptying trash and ash trays often, and refraining from cooking fish and other

strong smelling foods.

❑ Introduce good smells such as flowers, potpourri and air fresheners. Baking a frozen pie is another clever

tactic some sellers use to make the home seem cozy and inviting.

❑ Let plenty of light in. Brightness improves a home’s atmosphere.

❑ Make sure the temperature is comfortable.

❑ You may want to set the dining room table to display a homey environment.

❑ Hiring a cleaning service once a week will make it easier to keep the house in “show condition”.

❑ During a showing, it is recommended the seller not be home so that the buyers can feel free to ask the real

estate professional candid questions.

❑ Be courteous, but don’t force conversation.

❑ Turn off radios and televisions; they can be distracting.

❑ Keep pets out of the way.

❑ Don’t apologize for the condition of the home. If there is a problem, pointing it out will emphasize it.

Showing your Home

12 13

15 Minute Checklist

Your real estate professional has called and will be arriving in 15 minutes to show your home.

Here is a quick checklist to make sure you’re ready.

❑ Pick up debris (newspapers, clothes, etc.).

❑ Turn on lights, open curtains and make beds.

❑ Tidy the kitchen:

__ counter tops

__ dishes

__ take out trash

❑ Tidy the bathrooms:

__ flush toilets

__ shine fixtures

__ hang towels neatly

__ empty trash

__ wipe counters

❑ Close garage door and make sure outside walks are clear of debris.

MortgageCompany

Contract

®

Loan Application

Credit Report Pulled

Good Faith Estimate (GFE) Sent to Borrower

Loan UnderwritingLoan ScenarioChanges

NewGFESent

Contract Received Buyer / Seller letters Sent

Title Search Performed

Title Insurance Commitment

Title ExaminationClearance of underwriting objectionsDocument DeliveryObtain Figures for payoff, property tax, property association, other liens

Lender Closing Instructions Sent

Preperation of Documents

HUD-1 Tolerances are met from orginal GFE

Lender Sends Closing Instructions

Buyer Approved

Document PreperationCopyingWiringDocument handlingNotarizationScanningStorage

Post Closing &Recording

Closing & funding

Repair Title if Needed

The Home Buying Process

HUD-1Page 2 of 3Previous edition are obsolete

L. Settlement Charges

700. Total Real Estate Broker Fees

800. Items Payable in Connection with Loan

900. Items Required by Lender to be Paid in Advance

1000. Reserves Deposited with Lender

1100. Title Charges

1200. Government Recording and Transfer Charges

1300. Additional Settlement Charges

702. $ to

to

802. Your credit or charge (points) for the specific interest rate chosen

902. Mortgage insurance premium for months to

1002. Homeowner’s insurance months @ $ per month $

1102. Settlement or closing fee

1202. Deed $ Mortgage $ Release $

1302.

701. $

801. Our origination charge

901. Daily interest charges from to @ $ /day

1001. Initial deposit for your escrow account

1101. Title services and lender’s title insurance

1201. Government recording charges

1301. Required services that you can shop for

703. Commission paid at settlement

Division of commission (line 700) as follows :

803. Your adjusted origination charges

903. Homeowner’s insurance for years to

1003. Mortgage insurance months @ $ per month $

1103. Owner’s title insurance

1203. Transfer taxes

1303.

704.

804. Appraisal fee to

904.

1004. Property Taxes months @ $ per month $

1104. Lender’s title insurance

1204. City/County tax/stamps Deed $ Mortgage $

1304.

1005. months @ $ per month $

1105. Lender’s title policy limit $

1205. State tax/stamps Deed $ Mortgage $

1305.

1006. months @ $ per month $

1106. Owner’s title policy limit $

1206.

1007. Aggregate Adjustment -$

1107. Agent’s portion of the total title insurance premium to

1108. Underwriter’s portion of the total title insurance premium to

1109.

1110.

1111.

805. Credit report to

806. Tax service to

807. Flood certification to

808.

809.

810.

811.

Paid FromBorrower’sFunds at

Settlement

Paid FromSeller’s

Funds atSettlement

$

$

$

$

$

$

1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)

(from GFE #1)

(from GFE #3)

(from GFE #2)

(from GFE #3)

(from GFE #10)

(from GFE #4)

(from GFE #3)

(from GFE #11)

(from GFE #9)

(from GFE #5)

(from GFE #7)

(from GFE #8)

(from GFE #6)

(from GFE #A)

(from GFE #3)

(from GFE #3)

$

$

10

11

12

13

14

15

16

41

The figures in the Buyer/Borrower’s column include loan fees, escrows, title service fees, and recordation tax. Note that most of the line items include a corresponding GFe block to make it easier for you to compare the actual settlement chanrges with the fee quote provided to you by your loan officer.

10 The 800s represent the lender’s fees. These charges are for the Buyer only

11 Line 901 is interest collected by the lender for the number of days left in the month of closing.

To illustrate, for a closing on October 29, the lender will collect three days of interest closing

(10/29–10/31), and the borrower’s first monthly payment will not be until December 1.

Accordingly, the mortgage interest for November is included in the December payment.

12 This section of the HUD-1 lists the amounts collected by the lender to be placed in the escrow

account for the future payment of items such as homeowner’s insurance, mortgage insurance and

property taxes. (Note that HOA/condo dues are NOT included and must be paid separately.)

13 Line 1101 is the charge for all title services and the lender’s title insurance policy. Title services

include title examination, title commitment preparation, preparing and issuing policies, and

conducting the settlement.

14 Line 1103 represents Owner’s Title Insurance. Title insurance protects the Buyer and the Lender

in the event a third party makes a claim against the title of the property. If a title claim occurs, it

can be financially devastating to an owner who is uninsured. If you want to protect yourself from

claims by others against your new home, you will need an owner’s policy.

15 Filing fees paid to the Clerk of the land records in order to record the Deed and Mortgage.

16 Taxes paid to the County and the Commonwealth in which property is purchased—based on the

sales price (or assessed value if that is higher) and the loan amount.

Key to the Settlement Statement (HuD-1)

HUD-1Page 3 of 3Previous edition are obsolete

Comparison of Good Faith Estimate (GFE) and HUD-1 Charrges

% $ or

Charges That In Total Cannot Increase More Than 10%

Good Faith Estimate

Good Faith Estimate

Good Faith Estimate

Total

Increase between GFE and HUD-1 Charges

HUD-1

HUD-1

HUD-1

Charges That Cannot Increase HUD-1 Line Number

Government recording charges

Charges That Can Change

Your initial loan amount is

Loan Terms

Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.

Daily interest charges

Your initial interest rate is

Initial deposit for your escrow account

Your loan term is years

No

No

No

No

Property taxes Homeowner’s insurance

Flood insurance

No

Yes, it can rise to a maximum of %. The first change will be on

Yes, the first increase can be on and the monthly amount

Yes, it can rise to a maximum of $

Yes, your maximum prepayment penalty is $

Yes, you have a balloon payment of $ due in yearson .

You do not have a monthly escrow payment for items, such as property taxes and

You have an additional monthly escrow payment of $

that results in a total initial monthly amount owed of $ . This includes

principal, interest, any mortagage insurance and any items checked below:

homeowner’s insurance. You must pay these items directly yourself.

Principal

Interest

Mortgage Insurance

includes

%

Our origination charge

Your credit or charge (points) for the specific interest rate chosen

Your adjusted origination charges

Transfer taxes

Homeowner’s insurance

Your initial monthly amount owed for principal, interest, and any

mortgage insurance is

Can your interest rate rise?

Even if you make payments on time, can your loan balance rise?

Does your loan have a prepayment penalty?

Does your loan have a balloon payment?

Total monthly amount owed including escrow account payments

Even if you make payments on time, can your monthly

amount owed for principal, interest, and mortgage insurance rise?

$

# 1001

#

# 1201

# 901

#

# 903

#

# 801

#

#

# 802

#

#

# 803

#

#

#

# 1203

$ /day

$

and can change again every after . Every change date, your

interest rate can increase or decrease by %. Over the life of the loan, your interest rate is

guaranteed to never be lower than % or higher than %.

owed can rise to $ . The maximum it can ever rise to is $ .

17

18

19

20

43

There are three categories in the Comparison Chart:

17 Sections 17, 18 & 19 represent comparisons between the Good Faith Estimate provided by the

lender and the HUD-1 statement. The lender has to comply with certain requirements when

quoting fees. You will note that in the first box there is zero tolerance between what is quoted

and what is paid at settlement. That means the lender will have to credit the Buyer if they

underestimate. In Box 18, you compare the total quote with the total paid on the HUD-1.

Any amount the Buyer pays that is more that 10% over the quote must be reimbursed by the

lender. In Box 19, the Buyer sees charges the lender has no control over. These charges can

fluctuate as needed.

20 Box 20 reflects the loan terms. This provides a snapshot of all terms for Buyer to review.

Compare the charges listed in the GFe column with the charges listed in the HuD-1 column. If the charges that cannot increase have increased (even by a penny), and/or the total of charges that cannot increase by more than 10% have exceeded the 10% limit, the lender must the overage at closing or within 30 days after closing.

Key to the Settlement Statement (HuD-1)

18

19

44 45

House Comparison Chart

Address

Price

location

Curb Appeal

Neighborhood

yard / landscaping

lot Size

Floor Plan

Bedrooms

Rooms Sizes

Bathrooms

Study / Office

Kitchen

Appliances

Storage

Garage

Deck / Patio

Pool / Hot Tub

Heat / AC

Taxes

School

Condition

energy efficiency

House Comparison Chart

Address

Price

location

Curb Appeal

Neighborhood

yard / landscaping

lot Size

Floor Plan

Bedrooms

Rooms Sizes

Bathrooms

Study / Office

Kitchen

Appliances

Storage

Garage

Deck / Patio

Pool / Hot Tub

Heat / AC

Taxes

School

Condition

energy efficiency

46 47

Garage Okay as is Needs work

Are the floors swept and stain free?

Are all items stacked against walls to allow for maximum floor space?

Is the garage door opener operating correctly?

In the garage organized and neat and well lit?

Attic Okay as is Needs work

Is the attic organized and clean?

Are the stairs in good condition?

In the attic well lit?

Are there any signs of insects or rodents?

Kitchen Okay as is Needs work

Are the appliances clean and working?

Are all the cabinets neat and in good condition?

Are all counter tops clean and uncluttered?

Does the tile need regrouting?

Does the sink need to be recaulked, chips repaired or stains removed?

Do the faucets leak?

Is the oven clean?

Bathroom Okay as is Needs work

Do the faucets leak?

Does the tub need recaulking?

Does the shower tiles need new grout?

A clean, neat home that looks nice and maximizes space will sell faster and at a higher price.

Keep in mind, a small investment in time and/or money could make your home much more

attractive to buyers.

Repair and Cleaning Checklist

exterior Okay as is Needs work

Does the house need fresh paint?

Are holes and cracks visible?

Are sidewalks, porches and decks swept, and in good shape?

Is there an inviting appeal?

Do the windows and door screens need to be replaced?

Does the house trim need repair/paint?

Are gutters and downspouts secure and clean?

landscape Okay as is Needs work

Are shrubs and trees trimmed?

Is the lawn fertilized?

Are flowers planted?

Is the lawn moved and edged?

Has the lawn been weeded?

Roof Okay as is Needs work

Are there any leaks or unlevel areas?

Are there shingles or tiles missing?

Does the roof have any unlevel areas?

48 49

Moving is one of the most stressful things a person can go through. In order to

alleviate as much of that stress as possible, you should start early (as soon as

you decide to sell your house) and follow a time table.

Choosing a Mover

If you decide not to do the move yourself, you’ll need to choose a mover.

Here are a few additional tips for choosing a moving company:

• Spend as little as possible, but also make sure you are choosing movers with the right equipment and experience

• Ask for references

• Get estimates in writing

• Be aware that you can get discounts depending on your profession and other organizations you may belong to

• Confirm mover credentials. Movers should be licensed and bonded, and employees should have workers’

compensation insurance

8 Weeks before the Move

• Have a discussion with your mover, getting everything in writing, about costs, insurance, packing, loading,

delivery and the claims procedure

• Make an inventory of your possessions. Decide what can be sold and what can be given away to charity

• Get copies of records from doctors, dentists, lawyers, etc.

• Make arrangements to transfer your children’s school records

4 Weeks before the Move

• If you are having the movers pack for you, arrange for this to happen a day or two before loading the truck

• If necessary, arrange for storage

• Clean or repair any furniture, curtains or carpets that need it

• Hold a garage sale

• If you are moving yourself, figure out how many boxes you need

• If you are moving yourself, figure out what size truck you will need by calculating the cubic feet of theboxes plus

large furniture pieces

Moving Tips

Are the shower doors clean?

Is the floor in good condition?

Is the gas igniter working properly (be sure to leave the key when you leave)?

Overall Okay as is Needs work

Are there excess items that can be pre-packed in order to make home appear larger?

Do the walls and woodwork need new paint?

Are there any holes or cracks in the walls?

Does the wallpaper need to be replaced?

Are the windows clean (inside and out)?

Are the floors clean and polished?

Are there any stains or damage from water leaks?

Is the carpet clean, stretched flat and stain free?

Are the draperies clean and properly working?

Do any squeaky hinges need lubricating?

Are the ceiling fans and vents clean?

Do the windows open and close easily?

Has the house been deep cleaned? Hire a professional?

Do any of the doors stick?

Do all the locks work properly and have keys?

Do the doors seal properly?

Are all lights working?

50 51

2 or 3 Days before the Move

• Defrost your refrigerator and freezer

• Have your movers pack your shipment

• Arrange to have payment ready for the driver on moving day

• Set aside valuables and legal papers to go with you

• Pack clothing and extra toiletries to go with you

• Pack your first-day handy items box (see Delivery Day below)

Moving Day

• Do-it-yourself movers should pick up the truck early

• Make a list of every item and box loaded into the truck

• Let the mover know how to reach you

• Before you sign the mover’s agreement, read the conditions. Keep it in a safe place until your goods are delivered,

charges are paid and all claims are settled

• Check to make sure you have turned off the water and that no leave-behind appliances are running in your old

house

• Inspect attic and garage, and lock all doors and windows

Delivery Day

• Assemble first-day handy items:

___ Scissors ___ Coffee Cups ___ Toiletries Kit

___ Paper plates ___ Bath towels ___ Snacks

___ Masking tape ___ Trash bags ___ Soap

___ Shelf liner ___ Utility knife ___ Toilet paper

___ Pencils and paper ___ Local phone book

• Check off all boxes and items as they come off the truck

• Make sure utilities are connected and install new locks

• Be on hand to answer questions, pay the driver, give directions, take care of any last-minute problems and examine

your goods

3 Weeks before the Move

• Assemble packing materials:

___ Furniture pads ___ Bubble wrap

___ Packing tape ___ Scissors

___ Large self-stick labels ___ Styrofoam peanuts

___ Felt-tip markers ___ Boxes

___ Nylon packing string and rope ___ Utility Knife

___ Crumbled newspaper

• Begin packing items that you won’t need

• Arrange to cancel utilities and services at your old home and have them installed at your new home

• Make travel and hotel reservations

• Organize car license, registration and insurance

2 Weeks before the Move

• Arrange to transfer all bank accounts to new branches

• Make any special arrangements to move pets. Ask your veterinarian about how to make the move

as easy as possible for your pet

• Inform current long-distance phone company of the date of your move, and make arrangements

for service at your new home

• Have your car checked and serviced for the trip

• Cancel any direct deposit and/or payment arrangements on bank accounts you are closing and any

delivery services

• Send in change of address form to the U.S. Post Office

• Change your address with any magazine subscriptions you have

• Send a change of address notice to your friends and family

1 Week before the Move

• Transfer any prescriptions to a pharmacy near your new home and return any library books and dvds

• If you have small children, you may want to make arrangements for a baby sitter while you’re packing

or moving

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Adjustable Rate Mortgage (ARM)

A loan with an interest rate that changes periodically in keeping with a current index, like one-year treasury bills.

Typically, ARMs can’t jump more than two percentage points per year or six points about the starting rate.

Amortization

A payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal.

Appraisal

An expert judgment or estimate of the quality or value of real estate as of a given date.

Appraised Value

An estimate of the value of the property offered as security for a home loan. This appraisal is done for financial

lending purposes and may not reflect the actual market value.

Bridging Finance

A short-term loan, usually at a higher rate of interest, taken out by people who have bought a house while waiting

for theirs to be sold, or when a normal mortgage and their savings falls below the asking price.

Caveat emptor

Latin for “let the buyer beware”. This puts the burden onto the buyer to be satisfied with the item before

purchasing the property.

Conventional Mortgage

A mortgage loan not insured by HUD or guaranteed by the Veterans’ Administration. It is subject to conditions

established by the lending institution and state statutes. The mortgage rates may vary with different institutions

and between states. (States have various interest limits.)

Credit Report

A report on the past ability of a loan applicant to pay installment payments in a timely manner.

Commission

Fee payable to real estate agent for selling the property by the person authorizing the same; usually a percentage of

the sales price.

Contract of Sale

Written agreement setting out the terms and conditions of a property sale.

Covenant

Conditions affecting the use of land or property written into the title.

Deposit

Usually 10% of the purchase price of a property placed in trust as evidence of intention to buy. Non-refundable

after exchange of contract, the deposit goes towards the purchase price when the sale goes through.

Glossary

Document Preparation

A charge by an attorney for preparing legal documents for a transaction.

earnest Money

The deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to

show that he or she is serious about buying the house. If the sale goes through, the earnest money is applied against the

down payment. If the sale does not go through, the earnest money will be forfeited or lost unless the binder or offer to

purchase expressly provides that it is refundable.

encroachment

When a building overhangs someone else’s property, or a fence is built over the dividing line between two properties.

encumbrance

An easement, mortgage or other liability on a property which impedes its use or transfer.

equity

The difference between the market value of the property and any loans that are outstanding on the property.

exclusions

Any item that is specifically not included in the sale, e.g., an above ground pool, garden shed.

escrow

Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the

funds are released to designated individual.

Flat Interest Rate

An interest rate that is based on the original amount of the mortgage for the whole term of the loan.

Fixed Rate Mortgage

A loan that carries an unchangeable interest rate over its entire term – typically a period of 15 to 30 years.

Fee Simple

An estate under which the owner is entitled to unrestricted powers to dispose of the property.

Homeowner’s Insurance

Protects the property and contents in case of damage or loss; must be for at least the loan amount or for 80% of the

value of the improvements, whichever is greater.

Interest

A charge paid for borrowing money.

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Interest Only loan

Loan on which interest is only paid periodically and the principal paid at the end of the term.

Inspections

An examination of property for various reasons such as termite inspections; inspection to see if required repairs

were made before funds are received, etc.

Inventory

List of items included with a property for sale; usually furniture, furnishings and other removable items.

liabilities

Your outstanding debts or what you owe.

leasehold

Form of land tenure or property tenure where one party buys the right to occupy land or a building for a given

length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market.

lien

A claim by one person on the property of another as security for money owed. Such claims may include

obligations not met or satisfied, judgments, unpaid taxes, materials or labor.

loan Application Fee

Paid to the lender at time of application; check with lender for amount.

loan Discount

The points a lender charges; may be paid by either buyer or seller on conventional loans; number of points

fluctuates with mortgage money market.

Maintenance Fee

Charged by the homeowner’s association as set out in the subdivision restrictions.

Maturity Date

The last day of the term of the home loan agreement. The home loan must then be paid in full or the home loan

agreement must be renewed.

Mortgage

Legal agreement on the terms and conditions of a loan for the purpose of buying real estate. (A mortgagee lends

the money to a mortgagor, the borrower).

lender Title Policy

Required by the lender to insure that the lender has a valid lien; does not protect the buyer.

Multiple listing

System of selling the property through many agents. The buyer pays only one commission. This goes to the agent

who lists the property on an official multiple listing form for other agents (if the agent sells the property) or is shared

between the first agent and the agent who actually finds the buyer.

Offer to Purchase

A formal legal agreement which offers a specified price for a specified property. The offer may be firm (no conditions

attached) or conditional (certain conditions apply).

Origination Fee

A fee the buyer pays the lender to originate a new loan.

Owner’s Title Policy

Insures that the buyer has title to the property.

PITI

Abbreviation for principal, interest, taxes and insurance, all of which are lumped together in your monthly mortgage

payment.

Points

A one-time only fee you pay up front to your lender, sometimes in exchange for a slightly lower mortgage rate.

One point equals 1% of the total amount you plan to borrow.

Principal

The actual amount of money that has been borrowed to buy a property.

Private Mortgage Insurance (PMI)

Insurance against a loss by a lender (mortgagee) in the event of default by a borrower (mortgagor).

Realtor Fees

An amount paid to the Realtor as compensation for his/her services.

Recording Fees

Charged by the county clerk to record documents in the public records.

Restrictions

Certified copy of deed restrictions required by lender.

Settlement

Completion of sale when balance of contract price is paid to the vendor and the buyer is legally entitled to take

possession of the property.

56 57

Survey

Confirms lot size and identifies any encroachments or restrictions violations.

Tax Proration

Seller pays his portion of taxes from January 1 to closing date.

Title Insurance

Protects lenders and homeowners against loss of their interest in property due to legal defects in title.

Title Search

The process of examining the land title to ensure the vendor has the right to sell and therefore transfer ownership.

A title search details the names of the owners and other information about the property such as encumbrances or

caveats on the title.

Notes

58 59

The purpose of this guide is information only and is not intended to be any warranty or representation on the part

of Mid-Atlantic Settlement Services, nor is it intended to be legal or financial advice. Please consult your attorney,

mortgage lender and other professionals with regard to buying a home and obtaining a mortgage.

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