Buyers guide

Lifetime Realty Group Keller Williams Realty 3830 S. Moorland Rd., Suite C New Berlin,WI 53151

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THE HOME BUYING PROCESS T H E H O ME BU YING PROCESS Decision to Buy Mortgage Preapproval Find a Realtor Buyers Consultation Agency Agreement Automatic Emails Select First Homes to View Current Market Analysis Write an Offer

WRIT ING THE OFFER Offer Price Earnest Money Inclusions/ Exclusions Closing Date Inspection - Right To Cure Home Warranty Closing Cost Credit

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ABOUT LIFETIME REALTY GROUP 2018 97 homes SOLD for over $45 million in sales volume

Full-Time Professional realtors with over 1,400 homes SOLD for over $250 million in Sales Volume!

2017 »» Top 1 % producing sales team in statewide MLS »» 185 homes SOLD for over $43 million in sales volume

2016 »» Top 1 % producing sales team in statewide MLS »» 180 homes SOLD for over $42 million in sales volume

2015 »» Top 1 % producing sales team in statewide MLS »» 155 homes SOLD for over $37 million in sales volume »» Top 1 % producing sales team in statewide MLS »» Voted Real Trends Best Real Estate Teams in America

We average a home SOLD every 3 days! We strive to be the market experts by researching real estate activity in the area of our client’s interest.

Combined with our sales experience, connections with potential buyers, and local market knowledge we can get your home sold for top market value. We are professional, full-time REALTORS, who work hard for our clients.

We are both involved with community and like to give back through Rotary Club, Chamber of Commerce, the local Food Pantry and the Police Citizens Academy.

Jennifer Strelka Buyer Specialist 414.305.2519 jstrelka@kw.com

Mark Dorlack Buyer Specialist 414.614.5627 mdorlack@kw.com 3

Chelsea Oglesby Nick Brown Buyer Specialist Buyer Specialist 414.939.9518 262.442.8699 visit us at lifetime-realty.com chelseamke@kw.com nickbrown@kw.com visit us at lifetime-realty.com

COMMITMENT TO BUYER AGENCY Help find your “DREAM HOME” that matches many of both your “needs & wants.”

To negotiate the best possible price & terms between you and the sellers.

Educate you in the beginning so the home buying process is as fun, enjoyable & stress-free as possible.

PRO-ACTIVE STEPS WE TAKE TO FIND YOU A HOME: Provide contact info for a trusted local lender to see what kind of monthly payment you can afford.

A good local lender is important to ensure low fees, good interest rates, and also will come into play if/when you’re competing with other buyers/ offers as listing agents/sellers trust good local lenders.

Establish best method of contact ( call, email, text) & best times to meet for showings.

Arrange a Buyers-Consultation meeting to educate you on the process of buying a home: a. Explain the chronological process of each step to buying a home. b. Show you the duties that I owe you as a Client vs. Customer. c. Explain the benefits of working with a buyer’s agent vs the listing agent directly. d. Explain what ‘procuring cause’ is and how Realtors actually get paid. e. Help you create your “wish list” for the type of home you want.

Send Buyer Agency contract via Dotloop (digital signature system) to be signed allowing me to represent you.

Explain how to understand all of the information on our MLS system links that will be sent to you.

Set up automatic email alert directly from our MLS so you’ll instantly know of any market activity!

Describe the ‘six big ticket’ items to look for when deciding to purchase the home.

Give you non-biased information by pointing out both the positives & negatives of every home.

Contact the Listing Agent prior to showing to gather as much information as possible.

Carry a tablet/ phone to instantly answer questions you may have about home or property.

If needed, we’ll proactively prospect neighborhoods of interest by going door to door & or calling.

If needed, will work with for sale by owners for homes that match your criteria to see if you’re If necessary, schedule a ‘second showing’ for any home you have interest in writing an offer on.

Represent you when writing an offer & explain all paperwork and key terms in detail.

Provide a Market Analysis to see if the home is priced competitively or overpriced. give advice on where a good starting offer price would be.

Efficiently communicate the responses to your offer including counter offer, acceptance or rejection.

Negotiate with the listing agent with your best interests in mind.

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COMMITMENT TO BUYER AGENCY L IFE TIME R E A LT Y G R O UP ’S CO M M ITM E NT TO BU YER AG EN CY Effectively communicate with you throughout the process to ensure the smoothest transaction possible.

Make you so happy that you will post raving reviews of us online & refer all family & friends to us for life!

Continue to have relationship after closing & be your Real Estate resource for life!

REPRESENTATION FROM ACCEPTED OFFER TO CLOSING & BEYOND: Work diligently to get your offer accepted!!

Communicate with you at least weekly with no news, good news or bad news.

Notify you of all the dates & deadlines so you can stay under contract.

KEEP YOU & THE SELLER HAPPY WITH EACH OTHER THROUGHOUT THE PROCESS! Handle all the behind the scenes work once the offer is accepted including a. Putting together a closing file & entering everything into dropbox for easy access. b. Entering into dot loop & creating greensheet. c. Sending all relative information to lender and listing agent. d. Staying in constant contact with lender, title company, listing agent & ensuring a smooth closing Explain the correct protocol of turning in earnest money.

Get you the names of good home inspectors for you to use to protect your investment.

Negotiate any items that may arise during inspection or tests.

Ensure you apply for final loan commitment so you will be qualified in time for closing.

Stay in contact with the listing agent so I know they are doing the work they need to.

Arrange & attend a pre-closing walk through typically sometime the week before closing Ensure the lender explains the closing statement properly & answer any questions I can.

Attend closing with you & be there when you are given your keys!

Ask to receive letter of reference to post online if you were happy with my services.

Monthly Neighborhood Update sent on the ist of every month to stay informed on home values in your area.

Follow up with you after closing to see if there are any unforeseen issues I can solve.

Maintain a consistent relationship with you for life. a. Client appreciation parties. b. Phone calls on home buying anniversary date. c. Social Media if you are on it. d. A possible visit to see what you have done with the home.

Helping everyone you refer to me with the same manner I helped you!

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DOs & DON’Ts FOR YOUR LOAN APPLICATION T HE GU I DE TO MAK ING YOUR NE W H O ME P URCHASE G O SMOOTHLY EMPLOYMENT: Do not change jobs Do not become self-employed You must explain in writing any gaps in employment BANK ACCOUNTS - OTHER ASSETS: D o not spend the money you have saved for your down payment Do not make any unexplained large deposits into your bank accounts Do not change bank accounts GIFTS: Make sure this is properly documented and fits the loan program you are applying for - you must discuss this with your loan officer CREDIT:

Do Do Do Do Do

not not not not not

close or open any new credit have any additional inquiries on your report have disputes of any credit lines on your report go over the limit on any of your credit lines make any new purchases before you close

• furniture • cars • student loans • lawn mower/ tractor, etc.

Do not change cell phone or cable companies Do not co-sign for anyone

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MAKING AN OFFER What do we have to do in order to make an offer of a property we like?

Ok that sounds good in theory, what is the average list to sale price?

Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate. The first thing we need to do is agree on a purchase price. We need to know everything else up front to make the contract valid.

So we will need to know the closing date, what of the sellers is included, & all your financing informa­ tion. I have given you a sample offer form. There is very little that I fill in & the rest is standard with build in contingencies to protect you.

In 2015 the average list to sale price in our area was 98%. So sellers are typically getting pretty close to the price they list it for. There were many situations where they would get S+ offers in 2 days. Each situation is different. If the home has been recently listed, they will most likely not come down much at all in price. If it has been on the market for 100+ days, you may be able to get them down in price due to the theory of supply and demand. We have sold over 500 homes to buyers just like you and we ensure you will get the best deal possible & get you in the home.

How do you find out all the information to put in an offer?

How is the offer delivered & what happens next?

We will talk about the most important parts of the offer in person. I also have an email I send out asking you to answer questions regarding what we talked about so I can have all of the information together to make drafting the offer easy.

I send the majority of my offers digitally by email.

No printing or scanning needed. Once you sign, I send to the listing agent & they present it to the seller. The seller will either accept it, reject it but will most likely counter it.

Is there a set % that we should offer less than the purchase price?

Once my offer is accepted, what should I do?

I will send you an email letting you know of the next steps and will be with you every step of the way.

Immediately after getting an offer accepted you will turn in.

No, there is no set rule of thumb and it depends on the situation. If you have 10 of the same houses with 10 different sellers, you may have at least 6 different prices. Some may really need to sell as they are getting divorced, moving out of state or found another home & need to move. Some may not be motivated and just trying to test the market and if they get what they want they will move.

Because of sellers’ situations, the list prices all vary.

There is no shame in writing listing price or over if the home is priced right and there is no shame in offering $40,000 off the list price if the seller has it priced to high. I will research comparable homes & we will come up with a good game plan we both agree on.

There is no shame in writing listing price or over if the home is priced right and there is no shame in offering $40,000 off the list price if the seller has it priced to high.

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FREQUENTLY ASKED QUESTIONS How will you tell me about the newest homes available?

Can I attend open houses?

Yes, you can. However always do your best to alert me first. The best way to be protected from that agent is when I email them your names & say you will be attending the open house. I will give you Open House Guest Passes to hand to the agent once you are there. Sign in your names only with no number, email, or address. Tell the agent if they have questions to contact me direct. If you happen to see an open house sign last minute & you can’t get a hold of me, you can still attend just tell the agent that I told you about the house and hand them the Open House Guest Pass.

The Multiple Listing Service Website provides upto-date information for every home on the market.

I constantly check the New on Market list so I can be on the lookout for my clients. I will get you this information right away.

Will you inform me of homes from an real estate companies or only Keller Williams Realty?

I will keep you informed of all homes. I want to help you find your dream home, which means I need to stay on top of every home that’s available on the market.

Can you help me find new construction homes?

Yes, I can work with most builders and get you the information you need to make a decision. On your first visit with the builder, I will accompany you. By using my services with a new construction home purchase, you will receive the services I offer, as well as those provided by the builder, at no additional cost.

Realtors are 100% commission based & do not get benefits or a salary from their company for showing houses.

How does for sale by owner (FSBO) work?

What is procuring cause & how do realtors get paid?

Homeowners trying to sell their home without agent representation are usually doing so in the hopes of saving the commission. If you see a FSBO and want the advantages of my services, let me contact the owner for you and make an appointment. Most times the homeowner will work with an agent, even though their home is not listed, since the agent is introducing a potential buyer to their property.

The legal definition of procuring cause would be “the cause that results in the attainment of a stated goal”. In real estate it would take on the meaning of the real estate agent or broker who, by their actions in producing a buyer, brought about the sale of a property. Realtors are 100% commission based & do not get benefits or a salary from their company for showing houses. It is not allowed to deal with one realtor first & then use another realtor for the same house. All questions & initial dealings will be with the realtor you choose to represent you in buyers agency.

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HOW TO WIN THE MULTIPLE OFFER GAME GENERAL SUGGESTIONS: Pre-Approval is a MUST. Best when it’s a small local bank, mortgage company or credit union.

Write Letter to seller & appeal to their emotions by explaining why you love the house.

Highest price is not always the best ‘contract’.

The fewest contingencies you feel comfortable with the better.

Triple check to be sure you have a compelling offer and nothing is left to interpretation.

Don’t require little things stay like pool tables, playsets, appliances if they want to keep them.

PRICE Offer the strongest that you can. It is typically rejected or accepted.

Escalation Clause (Addendum AC). Allows you to offer (x) amount more than any other offer up to a certain point. Consider an interesting number like $1150, not always $500 or $1,000.

Eliminate closing cost credits, & offer to pay other seller fees if possible.

INCREASE EARNEST MONEY DEPOSIT Standard is 1 % of purchase price. More is better.

Provide proof that you have the funds along with the offer.

Provide all or part of Earnest Money WITH the offer?

INSPECTION AND TESTING CONTINGENCIES Short timeframe Eliminate (not suggested). Minimize the number of tests required if any.

Financing Contingency Encourage loan officer to be proactive and call the listing agent to explain strength of buyer.

Bump up interest rate beyond ‘current rate’.

APPRAISAL CONTINGENCY If you feel comfortable with the price you are paying, sometimes clients have waived the appraisal contingency. Be sure to speak with agent regarding all consequences.

CLOSING DATE Allow seller to rent back after closing giving them flexibility. Rent free?

Flexible closing date that works for sellers. As quick as possible, or as long as possible.

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HOME SALE CONTINGENCY BUMP CLAUSE What is the bump clause in a home sale contingency?

about accepting a home sale contingency. We write our offers so that once you get an accepted offer on your listed house it will turn into a closing contingency & they can no longer bump you out if they get anothet offer without a contingency.

This will help you compete and potentially get better terms with the offer you write. The negative of this option is you can sell your house prior to finding something & you will have to move twice.

If you have a home sale contingency we have to write in a clause that if the seller gets another offer they like, they can cancel yours unless you remove both your financing & home sale contingency within 48 hours. Most people are not able/willing to do that so you typically will get bumped & have to start the process all over again even if you already did your home inspection. If you have an accepted offer on your home it will be a closing contingency and the bump will end.

3. Look at houses to buy & once you get one accepted with a home sale contingency list your house.

I currently own a home & want to sell that & buy another home. What are my options?

This is the least ideal option. Many sellers do not consider a home sale contingent offer if the buyers home is not already listed. At the very least you would need to have it ready to list in a day or two max. Time lost is opportunity lost because if the sellers get another offer without a home sale contingency you will be bumped out of primary unless you are willing to remove the home sale and financing contingency. The negatives of this is that you will not be able to compete with other buyers if they are interested in the same house. It also almost eliminates all the houses that are new to the market

We run into this situation very often & many of our past clients have had to overcome this. There are 4 different options based on your current financial situation & timeframe. Please weigh the positives & negatives of each option.

1. Look at homes to buy & write an offer without a home sale contingency.

This is the most ideal situation you can be in if you are preapproved to have both mortgages.

This can actually save you money in the long run as you can typically get better terms on the offer & make more money on the sale of your home because you don’t have to sell it as fast. You also have the flexibility if you want to list right away or after you find a place & don’t run the risk of being homeless. The negative is that you could potentially own two homes for a couple of months or longer & it is not available to everyone to even pursue.

4. Get an accepted offer on your house, move in to it & rent out your old house.

This option allows you to move out on your own time and turn your first home into an asset. You need to be comfortable with being a landlord.

2. List your house & then start looking at properties to buy with a home sale contingency.

Not all home sale contingencies are treated equal and if your home is already listed, or better yet has an offer, a lot of sellers will feel more comfortable

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WHAT IS EARNEST MONEY? What is Earnest Money?

If the deal does die, how do I get my earnest money back?

A deposit of money up front to indicate a sincere intention to complete a transaction. The standard amount is 1 % of the sales price. When the home closes, it will be credited to your down payment.

For example, on a $200,000 house with 10% down it would be $2,000 earnest money & then $18,000 would be left of the down payment on closing day.

A Cancellation & Mutual Release form is signed by you and the sellers that states where the money goes to. Once signed, it typically takes 7-10 days to get processed mailed to your specified address.

When is earnest money due?

It is typically due within 3 days after the offer has been accepted. Once accepted I will tell you exactly when due.

Who do I make the check out to?

It is made out to the listing brokers trust account. I will send you full details of who to make the check out to, how much to make it for, and where to take the check to.

Does it have to be a cashiers check?

It does not need to be a cashiers check and a normal check will suffice.

Me and my spouse/significant other/ roommate have different accounts, can it be more than one check?

Yes, as long as it totals the full amount and is delivered in time.

Can I lose my earnest money if the deal doesn’t close as expected?

I always write my contracts to protect your earnest money by including contingencies like home inspection, appraisal and financing. Each situation is different, however a good rule of thumb is if the deal dies due to something out of your control like inability to get financing, low appraisal or bad home inspection you will get it back. If it is your fault, the sellers can keep it .

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HOME INSPECTION What is a Home Inspection?

basement, exterior & interior walls, chimney, doors, windows, attic & exterior grading.

A thorough visual assessment of a home conducted by a certified professional home inspector to reveal any issues that are or might become defects.

HOME INSPECTION I ADDITIONAL TESTING

How do I find a good home inspector?

Does a home inspection include tests as well?

You are able to use whoever you would like as long as they certified, however though the 650+ homes we have sold, we have narrowed our list to 3 of our favorites. We will give you these three once we have an accepted off er.

No, if you want any testing done like radon, asbestos, mold, foundation or others they are an additional expense of the buyer. It is the buyers job to find the defect and the sellers job to take care of the defect.

How much does a home inspection typically cost?

What are the most common tests that I would test for?

Most home inspections are $300-$400 and is money very well spent as it can prevent you buying a home with major issues that were not discovered in the initial walk through of the home.

Radon is by far the most common test that is done and most home inspectors have the necessary equipment to test it and can bring it right to the inspection. The other common ones include mold, asbestos, foundation, and drain tiles.

How long does a Home Inspection Typically Take?

A typical home inspection takes two to three hours, where the home is examined from the ground up & the outside in.

Do I need to have tests for everything as it sounds very expensive?

No, all tests are optional & besides radon are only done if we or the inspector recommends a test because we think there is a bigger problem and want to ensure it is taken care of. All test costs vary, however a standard radon test is about $125-$150 on top of the inspection & takes two days to complete.

Am I required to attend the home inspection?

No, however it is highly encouraged for the buyers to attend the inspection and follow around the inspector to learn all you can about the house.

The inspectors are there to answer questions and educate you as much as possible. It is best to not invite too many other people as it throws the inspector off their routine & is counterproductive.

SATISFYING THE CONTINGENCIES Contingency Deadline

Am I required to do a Home Inspection?

My standard deadline timeframe is 15 days. That means that the inspection & all tests need to be completed in a timely fashion to allow the seller time to think and gather quotes for any repairs asked. We cannot give them an amendment on day 13 & expect them to sign it in time. The first thing done once getting an accepted offer is scheduling the inspection. If an agreement cannot be made by 15 days you either accept it as is or the deal dies & earnest money is returned.

No, however it is highly encouraged as it could be the best money ever spent!

What does a Home Inspection Include?

It includes observation, and when appropriate the operation, of the plumbing, heating, air conditioning (if weather allows), electrical & appliance systems.

It also includes the observation of structural components including the roof, foundation,

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HOME INSPECTION How do I know what is considered a defect?

How is the Home Inspection/ Testing Contingency Satisfied?

The key word to what is a defect is significant. Items that have significant impact from a health, safety or financial standpoint are typically ones that are asked to be fixed. The summary list is meant for the realtor and buyer to prioritize the most important items for the sellers to possibly take care of. It is not meant to be given to the seller for them to fix every item and to make the home perfect.

After we receive the report, we will take a look at the most significant items to ask the sellers to fix and we put it on an amendment. More is typically less and if asking for too much they usually say no to everything & the deal dies. Once both parties have agreed to the terms within the time allowed the contingency is satisfied.

HOME INSPECTION I ADDITIONAL TESTING

SATISFYING THE CONTINGENCIES

Does a home inspection include tests as well?

Contingency Deadline

No, if you want any testing done like radon, asbestos, mold, foundation or others they are an additional expense of the buyer. It is the buyers job to find the defect and the sellers job to take care of the defect.

My standard deadline timeframe is 15 days. That means that the inspection & all tests need to be completed in a timely fashion to allow the seller time to think and gather quotes for any repairs asked. We cannot give them an amendment on day 13 & expect them to sign it in time. The first thing done once getting an accepted offer is scheduling the inspection. If an agreement cannot be made by 15 days you either accept it as is or the deal dies & earnest money is returned.

What are the most common tests that I would test for?

Radon is by far the most common test that is done and most home inspectors have the necessary equipment to test it and can bring it right to the inspection. The other common ones include mold, asbestos, foundation, and drain tiles.

How do I know what is considered a defect?

The key word to what is a defect is significant. Items that have significant impact from a health, safety or financial standpoint are typically ones that are asked to be fixed. The summary list is meant for the realtor and buyer to prioritize the most important items for the sellers to possibly take care of. It is not meant to be given to the seller for them to fix every item and to make the home perfect.

Do I need to have tests for everything as it sounds very expensive?

No, all tests are optional & besides radon are only done if we or the inspector recommends a test because we think there is a bigger problem and want to ensure it is taken care of. All test costs vary, however a standard radon test is about $125$150 on top of the inspection & takes two days to complete.

How is the Home Inspection/ Testing Contingency Satisfied?

After we receive the report, we will take a look at the most significant items to ask the sellers to fix and we put it on an amendment. More is typically less and if asking for too much they usually say no to everything & the deal dies. Once both parties have agreed to the terms within the time allowed the contingency is satisfied.

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APPRAISAL CONTINGENCY What is an Appraisal & how much does it cost?

What happens if the appraisal comes in at or above the value that we offered?

A professional opinion, usually written, of the market value of a property, such as a home, business or other asset whose market price is not easily determined. Required when a property is sold with financing. Typically still happens when sold with cash. The cost varies by bank, however it is typically around $400-$450.

Then the deal goes on as planned and the contingency is removed. If the value is higher than you have extra equity in the house. Appraisers do see the accepted offers so typically they come in right at or a touch higher than the sale price.

Can I dispute the results of my appraisal?

What happens when the appraisal comes in below the value that we offered?

Yes, you can, however it very rarely changes things. Appraisers are humans and if you had 10 different appraisers do an appraisal for your house you may have many different values. They have bad days & make mistakes just like you and I. I have found it nearly impossible to change an appraised value once complete.

If financed the bank will not allow a sale price even $1 over the appraised value & there are 5 options.

1. The seller lowers the price to the appraised value and you get to buy the house for a lower price.

Does an appraiser look at anything else?

2. The seller will not lower the price at all and you have to come up with the difference in cash on top of your down payment. (For example: 10% down on a $110,000 home with an appraised value of$100,000. Now $20,000 in cash is needed instead of the $11,000 it would have taken to cover down payment.)

Yes, in a sense it is a mini home inspection for the bank. If they see some glaring defects they will require them to fixed prior to lending money. The more money down, the less they care & if 20% or more they may just do a drive by appraisal. If a government loan, the appraisal process if much more detailed. The bank will give work orders that need to be done prior to closing. (See most common FHA repairs sheet)

3. Both the seller drops the price & the buyer chips in extra cash to meet in the middle or in between.

4. The deal dies & you receive your earnest money back as long as you are within the contingency deadline.

How long does an appraisal take?

They can take up to 3 weeks to schedule & the report is detailed so 1 week to do. This is why it is so important to meet with the lender right away to get that process going as they cannot order the appraisal until all the docs are signed.

5. The deal dies & seller receives the earnest money because you are past the contingency deadline.

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MOST COMMON FHA REPAIRS 1. I f the home was built before 1978, chipping, peeling paint must be scraped and painted. This includes interior, exterior, garages, fences, etc. Chipped and peeling paint will be called for 100%of the time.

2. R oofs should have 2-3 years of useful life remaining and no more than 2 layers of shingles. During snow season, if the house is over 10 years old, you must remove snow from the large portion of the roof for inspection by appraiser.

3. Broken windows must be replaced.

4. T he cause of wet basements must be cured (i.e. Improve drainage away from the house, gutters installed, etc.).

5. E lectric service must be 60 AMP or greater.

Electric Certification may be required if 60 AMP appears to be overloaded. Homes larger than 1000 sq. ft. will need 100 AMPs. 6. A bandoned inoperable wells must be capped and sealed by a licensed well sealing contractor.

7. S afety handrails should be installed in open stairwells of 3 or more stairs, both inside and outside.

8. I nfestation of any kind should be exterminated (i.e. insects, mice, bats, etc.)

9. D amaged or inoperable plumbing of heating systems should be repaired.

10. S tructural or foundation problems must be repaired.

11. Flammable storage tanks must be removed and filler cap sealed from outside.

12. If there is a crawl space, it is the home owner’s responsibility to make this area accessible.

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FINANCING CONTINGENCY My lender already pre-approved me so I should be good right?

matter. You may get frustrated and mad, however know it is not the loan officer who needs it, it is the government regulations. It is to help prevent another financial meltdown. Once the process is over, you will forget all about it and be happy with your house!

NO! Pre-approval is the first step and it hopefully ensures a smooth closing on the financing side.

However, right after you receive an accepted offer you have to call and set a meeting with your lender to get the whole process going for loan commitment. This is what takes the most time with a closing and the reason why closings are typically 45 days.

Can I be denied once I have already been preapproved?

Yes ... see the loans do’s and don’ts sheet. If you do any of the don’ts anytime to the day of closing, they will find out.

How soon after accepted offer do I need to meet with my lender?

How is the financing contingency waived?

The easy answer is as soon as possible. The loan commitment, appraisal, underwriting and approval process takes a long time. The last thing you want to do is potentially lose your earnest money because the lender cannot close on time because you took too long to meet with them. When getting an accepted offer, call the lender asap to meet.

The lender will issue official loan commitment.

This is required for you to sign & I will also have an additional form giving me permission to deliver the loan commitment to the listing agent. This will officially remove the financing contingency. This has to be done in the time allowed on the offer. Most often 35 days. Delivering this officially removes the contingency and if anything happens between the time it was removed until the time it closes that prevents closing, you can be forced to forfeit your earnest money. Sometimes loan commitments have conditions on there that still need to be met. This is normal and the lender giving their approval that they are confident it will close.

What is this new government program I am hearing called TRID? Starting in October 2015 new TRIO guidelines came out to ensure the consumer a more transparent transaction on the lending side. Because of this all closing documents need to be ready at a minimum of 3 days prior to closing with no changes able to be made without delaying closing. This is why it’s so important to schedule an appointment asap.

What is all required to meet underwriting?

That is different for every bank and lender. They all do have mostly the same rules and some have additional rules. The lender will tell you what they need and hopefully they get most everything up front. The biggest hassle with buying a home is getting the lender everything they need in a timely

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PAST CLIENT REVIEWS ONLINE RESEARCH W E A R E T H E M OST REVI E WED TE AM O R AGE NT IN O U R A R E A W ITH 1 40 & CO UNTI NG!

CHE C K U S O U T O N Z I L LOW.CO M

Search for Jeremy Rynders or Scott Klaas

Click on AGENT FINDER Enter LOCATION of your home Enter Jeremy Rynders or Scott Klaas in the NAME field

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MOVING CHECKLIST New Address: ___________________________________________________________________ New Phone#: ___________________________ Before you move, you should contact the following companies and service providers: Utilities:

Insurance Companies

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Electric

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Accidental

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Telephone

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Auto

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Water

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Health

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Cable

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Home

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Gas

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Life

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Renters

Professional Services: ¨

Broker

Business Accounts

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Accountant

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Banks

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Doctor

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Cellular Phones

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Dentist

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Department Stores

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Finance Companies/Credit Cards

Government ¨

Broker

SUBSCRIPTIONS

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Accountant

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Magazines

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Doctor

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Newspapers

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Dentist

Miscellaneous

Clubs

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Business Associates

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Health and Fitness

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House of Worship

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Country Club

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Drug Store

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Dry Cleaner

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Hairstylist

visit us at lifetime-realty.com 18

CLOSING DAY 101 What do I need to bring to closing?

How does the property get transferred to my name?

Most importantly you will need a certified check for closing costs and down payment. Your lender will tell you this exact amount prior to the day of closing. If it is a lot of money or a cash deal, the title company will require a wire to be made and you will have to set the wire up prior to the day of closing for it to be trans£ erred to the title company at the time of closing or even before. You will also need your driver’s license or certified photo id and to know your social security #’s

A deed is the document that transfers ownership of real estate. The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and wit­nesses. At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing which can take a couple of months.

When will we be able to take possession of the house and get banded the keys?

What can I expect at a closing?

If it is financed the government is always coming up with more forms to help with compliance. You will sign a closing statement 6 times so everyone can get an original copy. Then you will sign many, many forms after that. It is best to listen to the closing coordinator as they have done it many times and will guide you through and answer any questions you may have. A member of our team will be at closing to ensure everything goes smoothly. If you are paying in cash there are very few forms to sign and you can be done very quickly. (10-15 min.)

Closing day is the day that you take possession unless there is a rent back agreement. You sign all the papers, give away the check and you get handed all keys and garage door openers and it is ready for you for immediate possession and most likely repairs and improvements.

How long do closings typically take?

This depends on certain factors. If you are paying cash the closing could be done in 10 minutes. The majority of closings are financed and the length of them varies by lender. Bigger banks and nonlocal banks will typically take longer because they have to send all the paperwork to someone out of state for approval. Local banks, credit unions, and mortgage companies can typically be done in 30 minutes to an hour. They need to be set during normal business hours.

visit us at lifetime-realty.com 19