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“The Next Step”

“The Next Step”. Prepared by. exclusively for our buyers and sellers!. Dann : 303-930-5123 dann@degenteam.com Cory : 303-930-5228 cory@degenteam.com Website : www.degenteam.com. Introduction.

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“The Next Step”

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  1. “The Next Step” Prepared by exclusively for our buyers and sellers! Dann : 303-930-5123 dann@degenteam.com Cory : 303-930-5228 cory@degenteam.com Website : www.degenteam.com

  2. Introduction The following pages provide a brief description of each of the common steps involved in the purchase and/or sale of a residence, including a brief explanation of each pre-printed “deadline” in the standard form Contract to Buy and Sell Real Estate (Purchase/Sale Contract). Each step and/or deadline will be addressed in the chronological order in which they usually fall. For each deadline, we will include an item # to reference the specific deadline on page one of the contract and a paragraph reference, should you desire to refer to the contract language for further review. As always, should you have additional questions, please feel free to contact “The Degen Team”. It would be our pleasure to assist you!

  3. Be Aware! Please be aware The Next Step program, as it is presented here, only addresses those deadlines as they appear “pre-printed” in the contract. It does “not” include additional specific deadlines that may have been added to the Additional Provisions (Paragraph 24) nor does it address deadlines that may have been included in a Counterproposal or an Agreement to Amend/Extend. This generalized description should not be construed as a legal interpretation of “your” contract, but instead an aid in understanding the various steps involved in the process of buying and/or selling a residence. We suggest you read the entire presentation first… then review and follow your contract dates as you progress. Please enjoy…

  4. Shopping for a lender… Buyers- For the following reasons we highly recommend that even prior to getting started in the home buying process, you should first, shop for a lender and second, get “pre-approved” if possible (not just pre-qualified): • If and when you find the home of your dreams and you desire to write an offer, the seller may be considering other offers as well. Obviously, you will want to put yourself in the best negotiating position possible… that being “pre-approved”! • Do not waste your time searching for a home you cannot afford! • Know if you have the “ability” to qualify for more! • Review your options for the various different types of loans and interest rates! This does not mean you cannot buy a home until you are pre-approved… it is simply in your best interest to pursue “pre-approval”. For an in-depth review of what to look for in shopping for a lender, loan types and interest rates… please visit www.degenteam.com, click on The Next Step button and then on Tips for Buyers! (Review cautions re: Mortgage Brokers!)

  5. “Lock-in and sleep!”(Not part of the purchase/sale contract.) Step 1…Now that you are under contract to purchase a home, we highly recommend you consider “locking-in” your interest rate. We recommend you choose your lender as soon as possible (if you have not already done so) and consult with your loan officer as to how interest rates might fluctuate between now and when you close. Higher interest rates may affect your ability to qualify and will definitely affect your monthly payment! Again, we generally recommend that you “Lock-in and sleep well” versus “Float and have nightmares!” NOTE: Ask your lender to provide you with a letter stating “all” the terms of the loan you have just “locked-in”. This should prevent misunderstandings later!

  6. Loan Application DeadlineItem No. 2, Paragraph 5 .1 Step 2… This is the deadline by which the buyer(s) are to make formal loan application with the lender of their choosing, requiring the buyer(s) to complete a written loan application. The buyer(s) should prepare for this appointment by bringing bank statements, W-2’s, paycheck stubs etc. as directed by their loan officer. NOTE: Buyer’s please understand the importance of getting any and all additional information requested by your loan officer to them in a timely manner. After delivering this documentation, ask your loan officer if there is anything else he/she may need. Then, direct your loan officer to submit your loan application package to the underwriter as soon as possible, regardless of the loan commitment (loan approval) deadline. The underwriter may require yet more information or documentation. Again, provide whatever is requested as soon as possible. And “know” what your loan officer is doing or not doing regarding your loan!!! Your personal efforts, both providing the information and monitoring your loan officers progress will better assure you of: a) receiving timely loan approval, b) acquiring your closing cost numbers in a timely manner and c) closing on time with less stress.

  7. Seller’s Property DisclosureItem No. 20, Paragraph 10.1 Step 3…This is the date by which the seller(s) are to deliver their disclosure to the buyer. The seller(s) have prepared this disclosure to “the best of their current actual knowledge”. Please understand, this is “NOT” an agreement, nor is it a guarantee as to the condition. It is simply a disclosure completed to the best of theseller’s current actual knowledge.

  8. Inspection Objection DeadlineItem No. 21, Paragraph 10 .2 Step 4…Buyer(s) are allowed to have any number of inspections completed on the subject property during the inspection period which ends at this deadline. In the event they find unsatisfactory conditions, this is the deadline by which the buyers are to: a) notify the sellers (in writing) of those unsatisfactory conditions or b) notify the sellers (in writing) of their wishes to terminate the contract. Buyer(s), please notify The Degen Team if you intend to have a Radon Test completed as part of your inspection (approximately $125) and your preferred inspection date & time, usually 9:00, 12:00. or 3:00 of each business day. We highly recommend our buyer(s) accompany the inspector of their choosing during the inspection(s).

  9. Inspection Resolution DeadlineItem No. 22, Paragraph 10 .3 Step 5…(Provided the buyer(s) delivered written notice of “unsatisfactory conditions” to the seller(s) on or before the Inspection Objection Deadline…) This is the deadline by which the buyer(s) and seller(s) are to reach a writtenresolution as to the remedies of those unsatisfactory conditions. Should this not occur, your contract will terminate 1 calendar day after this deadline. During this 1 calendar day, the buyer(s) reserve the right to withdraw all their inspection objections and continue on with the purchase.

  10. Homeowners Insurance!Item no. 23, Paragraph 10.5 Step 6… Buyer’s, now is a good time to shop for your “homeowner’s insurance”, company and agent. Once you make your decision, have your insurance agent contact your lender. We have provided a list of recommended agents at our “Vendors/Services” button on our website- www.degenteam.com

  11. Title DeadlineItem No. 10, Paragraph 7.1 Step 7…The seller(s) are required to deliver, or cause to deliver, a title insurance commitment to the buyer(s) by this date. This is a commitment from the title company stating they will commit to insure a free and clear title to the property upon closing, with certain conditions and/or exceptions. You may also receive home owners association declarations and governing documents, as well as covenants and restrictions along with this title commitment. You may wish to have your attorney review these documents.

  12. Document Request DeadlineItem No. 14, Paragraph 7.2 Step 8… In the event buyer(s) find conditions, exceptions or issues within the title commitment that are of concern; they have the opportunity to request (in writing) additional information regarding those issues on or before this deadline!

  13. Title Objection DeadlineItem No. 11, Paragraph 8.1 Step 9…If unacceptable issues surface in the Title Commitment (i.e. a class action lawsuit, an unacceptable easement over the property etc.), the buyer(s) may choose to object to those items. Should the Seller(s) “NOT” be able to remedy or remove those items from the Title Commitment; the buyer(s) may choose to terminate the contract provided the buyer(s) deliver a signed, written notice to the seller(s) to that affect on or before this deadline. (Terminating the contact provides for earnest money to be returned to the buyer(s), see paragraph 23.)

  14. CIC Documents DeadlineItem No 15, Paragraph 7.4.4 • Step 10… The term CIC Documents consists of all the owners’ associations declarations, by-laws, operating agreements, rules and regulations, party wall agreements, minutes of recent owners or managers meetings, and most recent financial documents (balance sheet, expenditures sheets, annual budget). These documents shall be provided by the Seller to the Buyers on or before this deadline.

  15. CIC Documents Objection DeadlineItem no. 16, Paragraph 7.4.5 • Step 11….. Written notice of any unsatisfactory provision in any of the CIC documents, in Buyer’s subjective discretion, signed by the Buyer, or on behalf of Buyer, and delivered to Seller on or before CIC Documents Objection Deadline, shall terminate this Contract. (Again, terminating the contact within the provisions of the contract provides for earnest money to be returned to the Buyer(s), see paragraph 23.)

  16. Off-Record Matters DeadlineItem No. 17, Paragraph 8.2 Step 12…The Title Company commits to provide title insurance for items “of record” (recorded by the County). The Seller(s) also have an obligation to deliver items they have in their possession that are “not of record” -or- “Off-Record” (not recorded by the County). Examples of which may include, but are not limited to, leases (rental agreements, gas and oil leases, grazing rights, etc) and surveys. This is the date by which the sellers have agreed to deliver these documents (if any) to the buyer(s). (The seller(s) may have received an Improvement Location Certificate or Survey when they purchased the property.)

  17. Off-Record Matters Objection DeadlineItem No. 18, Paragraph 8.2 Step 13…Should the seller(s) deliver “off-record” items to the buyer(s) that the buyer(s) find unsatisfactory -and- “IF” the buyer(s) provide written notice of those unsatisfactory conditions, on or before this deadline -and- “IF” the Seller(s) cannot remove or remedy said objections; the buyer(s) may choose to terminate the contract. (Again, terminating the contact within the provisions of the contract provides for earnest money to be returned to the buyer(s), see paragraph 23.)

  18. Appraisal DeadlineItem No. 9, Paragraph 6.2.2 Step 14… In the event the appraised value is less than the contract purchase price -OR- there are appraisal conditions (roof, paint, etc.) and the buyer(s) provide written notice of the same to the seller(s) on or before this deadline; the contract may be terminated by the buyer(s) unless the buyer(s) and seller(s) have mutually agreed otherwise.

  19. Survey DeadlineItem No. 12, Paragraph 7.3 Step 15… In the event the buyer(s), the buyer’s lender, or the title company desires or requires a survey or an improvement location certificate (ILC) and the survey (or ILC) reveals an issue (i.e boundary, property line or easement issues), this is the deadline by which the buyer(s) are required to notify the seller(s) of those issues. If the seller(s) cannot remedy the situation; the contract may be terminated by the buyer(s).

  20. Loan Commitment DeadlineItem No. 3, Paragraph 5.2 Step 16… If for any reason the lender determines the buyer(s) cannot qualify; the buyer(s) are required to provide the seller(s) with written notification from the lender of that inability on or before this deadline which shall cause the contract to terminate. NOTE: If this deadline passes and the buyer(s) do not close because they cannot obtain financing, the buyer(s) will be in “default” and all earnest money shall be forfeited to the seller(s).

  21. Your Loan Officer…(Not part of the purchase/sale contract.) Buyers Be Aware- Now that you have loan approval, “strongly” encourage your lender to get their numbers to the title company early! The title company cannot work up your settlement costs without your lenders numbers! If the title company cannot work up your settlement costs, you cannot make the necessary arrangements of acquiring your “cashiers check” or “certified funds” needed for closing. If this process is delayed, you will be required to get these funds at the very last minute before closing. Very stressful! STRESS RELIEF… 1) Get any and all documentation to your loan officer up front! 2) Direct your loan officer to submit your loan package to the underwriter early! 3) Monitor your loans’ progress until “loan approval” by the underwriter! 4) Ask you insurance agent to notify your lender early in the process! 5) “Strongly” encourage your lender to get their numbers to the title company early! 6) If your loan officer is a mortgage “broker” -or- if your lenders funds are coming from outside the metro area, “demand” that they make sure your funds are there at closing… or it may cause you a delay in moving into your home!

  22. Utilities!(Not part of the purchase/sale contract.) Step 17… Call the electric and gas companies and request “meter readings” be performed on the day of possession (not closing). On the next page, you will find a “Quick Reference Phone Directory” to assist you in changing certain utilities “into” or “out of” your names.

  23. QUICK REFERENCE PHONE DIRECTORY Both Buyers and Sellers should call 2-3 days prior to closing, asking the Gas and Electric Company(ies) to “Read the Meters” on “the day of Possession” and have the service(s) transferred into (-or- out of) their names. Please do “not” have the utilities disconnected! Gas & Electric Xcel Energy 800-895-4999 Rural Electric Service Intermountain Rural Electric 303-688-3100 Water & SewerGenerally, the title company takes care of transferring the water and sewer. Trash Removal BFI 303-287-8043 ProDisposal 303-791-3827 Waste Management 303-797-1600 Waste Management – Elizabeth 303-371-6622 Eagle Waste Services 303-761-8387 Telephone Qwest 800-244-1111 AT&T 800-222-0300 Comcast 303-930-2000 Cable TV Comcast 303-930-2000 Time Warner 303-799-9599 Satellite TV Dish Network 800-843-4742 Direct TV 800-347-3288 Newspapers The Denver Post 303-820-1010 Denver Rocky Mountain News 800-933-1990 Locksmith Englewood Lock & Safe 303-740-7467   Your Realtors Cory’s Direct Line 303-930-5228 Dann’s Direct Line 303-930-5123 Degen Team (Out-of-town callers) Toll Free> 800-735-6548 Visit www.degenteam.comfor more vendors/services phone numbers!

  24. Closing DateItem No. 24, Paragraph 12 Step 18…WOW! You’ve made it to the big day! You will need to bring your driver’s license (or another picture ID) to closing. For Buyer’s, you will also need to bring a certified or cashiers check in the amount necessary to close, made payable to yourself. Just a sidenote… Buyers, if you recently closed on the sale of your prior residence, you should also bring a certified copy of your HUD settlement statement along with any additional paperwork required by your lender to the closing.

  25. Possession Date and TimeItem No. 25 & 26, Paragraph 17 Step 19… Time to move! Seller(s) are to have vacated the property by this date and time. Buyer(s) can plan to move into the property on the Possession Date and Time. Per Paragraph 19 of the contract… “Except as otherwise provided in this contract, the Property, Inclusions or both shall be delivered in the condition existing as of the date of this contract, ordinary wear and tear excepted.”

  26. Referrals, Referrals, Referrals! Step 20, 21, 22 and so on…You, as our client and friend, are impossible to replace! However, now that you have successfully closed, we are in need of another buyer or seller… “Who do you know thinking of buying or selling a home?” Give us a call and we’ll take it from there! Our clients and customers regularly ask us… “Did Bob and Judy give you a call? We referred them to you last month.” And all too often, the Bob and Judy’s of the world have received referrals from numerous friends and we become just another fish in the sea. So, if you would be so kind--- please give us a call and tell us about all your friends, neighbors and family needing our services, enabling us to “call them”. Your call to us makes all the difference in the world! Thank you for being “Degen Team Ambassadors”!!!

  27. “Congratulations”…on the sale or purchase of your home! We have sincerely appreciated the opportunity to serve you and your real estate needs. We hope this program has made the home buying and selling process a little more simplified and easy to understand. It’s been a pleasure working with you! Dann and Cory Degen The Degen Team

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