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Selling a home is not a complicated
process as you think. However, it is not simple either.
If you are armed with necessary knowledge and proper
tools, an assistance from a real estate agent or a
loan officer, it can go a long way.
Here are some of the information
you will find helpful:
 This section will explain to you details of the process:
Pre-qualify your buyers:
As a lending professional, we will
pre-qualify your buyers to ensure they are capable
of borrowing a loan. After an analyses of their credits,
their income, and their deposits, we will generate
a report to show:
- A break down of the closing cost An analysis of rent vs own.
- Loan program options sheet.
- How much monthly payment.
The reports will clearly indicate
whether they will qualify based on their financial
status. This is extremely important so that you don't
waste time to deal with unqualified buyers.
As a full service mortgage broker,
we have connection over 40 direct lenders. We are able
to shop for the best loan and the possible price to
suit for buyers' circumstances. This will enable buyers
freedom to select a loan best suited for his needs
at the best pricing without having to shop over the
town.
Seller's closing cost:
The following is a list of
closing cost that you, seller, will incur for the
transaction:
- Escrow fee
- Title Insurance fee
- Termite Report and Termite Repair
- Home warranty
- Draw document
- County transfer fee
- Miscellaneous
We will provide you a list of seller's
net to show how much it will cost you for the transaction.
What is the title Insurance?
The purchase of a home is one of
the biggest investment in one's life. Therefore, When
a person buys a home, he or she want to be certain
it's free and clear of any debts from the previous
owner.
That is when the title insurance
come in. It will provide the necessary protection
for the buyers and sellers over the possible defects.
Before the transaction closes, the title company
will perform the extensive search of all recorded
documents related to the property to determine if
there is any debts attached or cloud title pertaining
to the subject company. Without the protection of
title insurance, one could be in jeopardy of losing
his or her investment.
But even the most diligent
search of the public records, there are some common
barrier that can affect the title:
- Hidden defects not disclosed by public records
- Forged deeds, releases, falsified records, etc.
- Instruments executed under fabricated or expired
power of attorney
- Deeds delivered after the death of grantor or grantee,
or without consent of grantor
- Deeds by persons of unsound mind
- Surviving children omitted from a will
- Mistakes in recording legal documents
- Falsification of records
- Errors in tax records (i.e.: listing payment against
wrong property)
How much does it cost?
For a single family residence,
there is one time fee. The policy will remain in
effect as long as the sole owner whose the policy
is sold to remain as the owner of the subject property.
What is Escrow?
Buying or selling a home is a big transaction, it involves the transfer
of large sums of money between parties. It's important that the transfer
of these funds and related documents be handled in a knowledgeable, professional
and secure manner.
It is the job of the escrow officer to impartially
carry out the written instructions among buyers or
sellers or lender, including receiving funds and documents
necessary to comply with those instructions, completing
or obtaining required forms and delivery of all items
to the proper parties upon closing. Only when all the
instructions in the escrow have been carried out can
the closing take place.
What happens in escrow?
- Draw escrow instruction according to the purchase
agreement.
- Order a preliminary title report for the subject
property. This report will reveal any possible recorded
liens on the subject property.
- Order the demand paid off from seller's existing
mortgages or any lien holders.
- Order the home insurance for the buyers.
- Arrange for signing loan documents. Estimate the
closing costs for buyers to bring the money in for
closing.
- When the lender have verified all the paper works
and are ready to release the fund, escrow calls the
title company to set up the recording.
Information needed to open
escrow:
- Property address
- Legal description
- Seller's full name
- Buyer's full name and vesting.
- Loan information from seller's lender: loan number,
lender's name and phone number.
- Phone number of new lender for buyers
- Commission instruction
- Special instruction: rental agreements.
What An Escrow Holder Does
Not Do:
- Offer legal advice
- Negotiate the transaction
- Offer investment advice
Home Warranty Plan:
You can also obtain a home warranty
which will cover the major systems for the new buyer.
These will include heating, air conditioning, electrical,
plumbing, appliances and more. The typical home warranty
costs approximately $275 to $300 per year depending
on what additional items you may choose to have covered.
For an additional fee, you may choose to have coverage
on pools and their associated electrical appliances
as well as other items usually not covered such as
washers, dryers, refrigerators, etc.
As a For Sale by Owner, you may want
to advertise that the home warranty will be included
with the home sale, (you pay the first year) and the
money will be well spent. Once a-buyer takes possession
of his new home, it can be very troublesome and expensive
if major systems break down. The home warranty company
covers these items just like an insurance policy and
the coverage can be renewed each year if desired.
In the event of a problem, the home
warranty company will charge a deductible, usually
$25 to $50 per claim, and then they'll send out their
approved repair companies to take care of the problem.
Consult your local yellow pages for
listings of Home Warranty Companies or ask your local
real estate company. You can also contact some of the
larger air conditioning and heating companies who contract
with these home warranty companies. They will be happy
to give you the names of the ones they are dealing
with. I have taken the time to enclose a few names
and numbers of home warranty companies.
Be careful to select a reputable
home warranty company. Check out their track record
with your local Realtor or the Better Business Bureau.
Miscellaneous:
Termite Inspection and Repair: One of the requirements of a lender
is the subject property is free of termite. It is a
condition for approving a home loan. Therefore, this
is also your responsibility to have it done. Same thing
applies to Home Warranty, ensure to check out their
track record before order one.
Drawing Doc Fee:
A small fee paid for an escrow to draw documents between sellers and buyers
Tax Transfer Fee:
Fee is paid to a city for transfer of ownership |
