Home Buyer Closing Process

Reference Guide

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7400 Center St, Mentor OH, 44060

440-299-5102

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EDUCATION

BABusinessPsychology,1987

MiamiUniversity,Oxford,Ohio

PROFESSIONALQUALIFICATIONS

•26yearsofmarketingandsalesexperience

•StateofOhioLicensedRealtor,LicensedBroker

CAREERHISTORY

•AmericanGreetingsCorporation

ProductManager,MarketingDepartment

•KellerWilliamsRealty

RealEstateBroker/SalesAssociate

ACCREDITATIONS

•Ranked7thoutof766realtorsinLakeandGeaugacounties

•RankedintheTOP1%ofallrealtorsinLakeandGeaugacounties

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Home purchase closing overview 4

Important dates 5

Inspectors 8

Closing Protection Coverage 9

Glossary of Terms 10

 

 

Table of Contents 

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Home purchase closing overview Listed below is a flow of activities that will occur over the next few

weeks. We will be in close contact with the listing agent, mortgage,

title and escrow companies to execute the following items:

Home inspection

Compile the removal of contingency forms after all inspections

are complete.

Oversee the loan process from loan application through to loan

commitment, including confirmation of a satisfactory appraisal.

Instruct you on the exact date to transfer utilities, and communi-

cate the same information to the seller via the listing agent.

Schedule the final walk thru of the home

Make key transfer arrangements

Email or mail final sale papers

 

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Important Dates: (all of which are on the Purchase Agreement) Home Inspection - occurs within 7 days of signed contract

Loan Application - occurs within 5 days of signed contract (lender

will inform you of the pertinent documents to bring)

Signing with the Title Company - appointment day before title

transfer to sign all necessary documents and present certified

check (title company will call a day or so prior and give you the dol-

lar amount for the certified check you need to bring)

Title Transfer of Home - day home ownership changes and is rec-

orded with the county (You do not need to be present)

Possession Date - day you pick up keys and take possession of

home. Further details will be communicated to you.

In approximately one week the title company will mail out to you

the title paperwork to be completed and returned to them regarding

Closing Protection Coverage and other forms asking for your so-

cial security #, marital status, etc. This is a normal part of the clos-

ing process. Please complete and return this paperwork timely to

the title company.

Buyer Closing Process 

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Schedule the inspection

The inspection needs to occur within 7 days. Please schedule ap-

pointment with you and the inspector and let us know the infor-

mation so we can communicate this to the listing agent. This will

be your opportunity to view the home again with the inspector. If

you have any questions during the inspection, please contact our

office. If you would like a pest inspection, it can be scheduled at

the same time of home inspection or you can wait to see if the

home inspector sees evidence of pests then schedule a pest in-

spection. The inspector will then send a final report to you and our

office and we will call to discuss.

Please note: If home inspection is done October through April, the

Air Conditioning will not be able to be tested for function.

Earnest Money

Please make arrangements to drop off or mail check to our office.

Please make check out to Keller Williams Realty GCNE. Our ad-

dress is 7400 Center St. Mentor, OH 44060.

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Loan Application

This needs to happen within five days. Please provide me

with the date you are making loan application and the lend-

er’s contact information so that we can report it to the listing

agent. If you are in need of recommendations contact us.

Pre-qualification vs. Pre-approval

Pre-qualifying for a mortgage is a basic overview on how much house you can afford. Pre – approval is more in depth. Be-coming qualified does not necessarily mean that you will be approved for a loan of that amount. Pre-approval from your lender means that you have provided them with necessary paperwork such as bank state-ments, credit score and other infor-mation to demonstrate your financial capability.

Buyer Closing Process 

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Below are inspectors that Lisa recommends, but feel free to con-

tact your own.

Inspectors:

Bearmark Home Inspections General home, radon, well flow rate & potability. Calls pest compa-ny Steve Markiewich Cell (440) 487-5345 steve@bearmarkhomeinspection.com Scheduling Dept (440) 729-3232 Mark's Home Inspection Service General Home Inspections & Radon Gas Testing Craig Haas Cell (216) 299 9799 markshomeinspect@sbcglobal.net Ohio Valley Home Inspections Conducts radon, calls in well flow rate, potability and pest Larry Korosec, Owner Cell (440) 975-0277 lkorosec@oh.rr.com Radon Survey Systems, Inc. 10357 Liberty Rd, Twinsburg, OH phone: (330) 963-6633 toll free: (800) 883-4760

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Closing Protection Coverage   In the next week or so you will receive in the mail 2-3 pages, from the title agency handling the closing, which will need to be com-pleted and sent back. The Closing Protection Coverage is offered to buyers, sellers and lenders in every real estate transaction to protect the monies that come into and go out from the title company’s possession. If short-ly before or after closing, the title company closes their doors (goes out of business, without warning) then there is a chance the buyer, seller or lender would lose their down payment, net pro-ceeds or funding of the loan. This is unlikely to occur, but when the economy went south starting in 2006 and subsequently the housing market began to suffer, it impacted affiliated businesses such as title companies. If you elect to take the protection coverage, it will be listed as a charge appearing on your final settlement statement. These charges are typically $15 for buyers, $35 for lenders and $50 for sellers. It is a separate insurance company that insures the buyer, seller and lender dollars. The title company managing this closing does not keep the charge (cost).   

Buyer Closing Process 

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Appraiser An appraiser works on behalf of a lender and provides a market analysis of the subject property. An appraiser’s finding is subjective and combined with market findings of sold properties within the surrounding neighborhood. Appraisal A professional appraiser's estimate of the market value of a property based on local market data and the recent sale prices of similar properties. Buyer’s Agent A buyer’s agent or broker works with the buyer to locate a suitable property and negotiate a successful home purchase. Broker An individual who assists with arranging funding or negotiating contracts for a client but who does not loan the money himself or herself. Brokers usually charge a fee or receive a commission for their services. Closing The final steps in the transfer of property ownership. It is when the final docu-ments are signed by the buyer and seller. Closing Costs Expenses in addition to the price of the home incurred by buyers and sellers when a home is sold. Common closing costs include escrow fees, title insur-ance fees, document recording fees and real estate commissions.

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Contingency Conditions included with an offer on a home that must be fulfilled before the deal can close. If a buyer or seller is unable to satisfy a contingency, then the offer on a home may become void. Common examples are house closing, inspection and buyer financing. Counteroffer An offer in response to a previous offer. Earnest Money The deposit given by a buyer to a seller to show that the buyer is serious about purchasing the home. Earnest money usually is refundable to homebuyers in the event a contingency of the sales contract cannot be met. Escrow The holding of documents and money by a neutral third party prior to closing. Escrow Payment The part of a mortgager’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due. Escrow/Closing Officer An escrow or closing officer is a non-biased third party who works with all partici-pants to facilitate a successful closing of a real estate transaction. At closing, the closing officer will collect the purchase money funds from the buyer and lender as well as the settlement costs from each party. They disburse the funds in ac-cordance with the HUD-1 settlement statement and record the necessary docu-ments to transfer ownership of the property.

Glossar  of Ter s 

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Federal Housing Administration (FHA) A division of the Department of Housing and Urban Development whose main activity is insuring residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages. FHA Loan A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately priced homes almost anywhere in the country. Home Inspection Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc. Home Inspector A home inspector objectively and independently provides a comprehensive anal-ysis of a home’s major systems and components. Homeowner’s Warranty A policy that covers certain repairs (e.g. plumbing or heating) of a newly pur-chased home for a certain period of time. Insurance Agent An insurance agent helps a homebuyer determine the homeowner’s protection coverage needed and then finds the right insurance policy to fit those needs. Listing Agent A listing agent or broker forms a legal relationship with the homeowner to sell the property.

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Loan Officer A loan officer is a representative of a bank or other financial institution. They help customers identify their borrowing options and help them understand the terms of their loan. Multiple Listings Service (MLS) The service combines the listings for all available homes in an area, except for For-Sale-By-Owner properties, in one directory or database. Pre-Approval A process in which a customer provides appropriate information on income, debts and assets that will be used to make a credit only loan decision. The cus-tomer typically has not identified a property to be purchased, however, a specific sales price and loan amount are used to make a loan decision. (The sales price and loan amount are based on customer assumptions.) Pre-Qualification A process designed to assist a customer in determining a maximum sales price, loan amount and PITI (Principal, Interest, Taxes, and insurance) payment they are qualified for. A pre-qualification is not considered a loan approval. A custom-er would provide basic information (income, debts, assets) to be used to deter-mine the maximum sales price, etc. Point of Sale Various municipalities require an inspection of a property before the property can title transfer to a new owner. Once the inspection is passed, the current owner will be given an occupancy permit from the city that will need to be pro-vided to the escrow officer so that transaction can file (title transfer).

Glossar  of Ter s 

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Possession Date The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date. Radon Second leading cause of lung cancer after smoking. You cannot see, smell, or taste radon. But it may be a problem in your home. When you breathe air con-taining radon, you increase your risk of getting lung cancer. REALTOR® A REALTOR® is a licensed real estate agent and a member of the National As-sociation of REALTORS®. They also belong to their state and local Association of REALTORS®. When looking for a REALTOR®, the best place to start is by asking friends and neighbors for referrals. Another resource is the Find a REAL-TOR® search feature on the National Association of REALTORS® (NAR) web-site. Real Estate Agent A real estate agent is licensed by the state to represent parties in the transfer of property. Every REALTOR® is a real estate agent, but not every real estate agent has the professional designation of a REALTOR®. Staging Home staging is the act of preparing a private residence for sale in the real es-tate marketplace. The goal of staging is to make a home appealing to the high-est number of potential buyers, thereby selling a property more swiftly and for more money.

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Title A legal concept relating to ownership of property. Title Company Our thorough title searches, title clearance and title insurance policies help to produce clear property titles and enable the efficient transfer of real estate. Title Transfer Occurs when the title property is transferred at the county from the title owner to the purchaser. Underwriting The process of evaluating a loan application to determine if it meets the lender’s standards. VA Loan A long-term, low- or no-down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements. Walk through The final inspection of a home by the buyers before it's sold. Buyers will com-plete a final walk-through of the home to make sure any requests for repairs or appliances have been fulfilled before the closing papers are signed. A walk-through happens anywhere from a few days to a few hours before closing, and it's especially important if the sellers have already moved out of the home. If something isn't right, the buyers should ask the sellers to fix the problem before the sale is final.

Glossar  of Ter s 

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Presented By

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Cell: 440 7968043

Of ice: 440 299‐5102

iFax: 440 299‐5276

E‐mail:Lisa@LisaSiskoTeam.com

Website:LisaSiskoTeam.com

BarbDentonMarketingSpecialist

barbdenton@lisasiskoteam.com

DebbieRibinskasPhotographer&Stager

debbie@lisasiskoteam.com

BarbLoeserListing/ClosingManager

barb@lisasiskoteam.com