Alba - So You're Under Contract, Now What

So You're Under Contract Now What? Buyer’s Guide Julian Hardaker, ABR, CRS | Owner / Broker 1001 Grand Ave #307. Glenwood Springs, CO 81601 Cell: (970) 456-1860 | Fax: 888-478-0471 Email: [email protected] Webpage: http://www.thebestwayhome.com

Welcome!This document is designed to give you an idea of what toexpect, but my job is to guide you through every step ofthe process. Don't worry, I will be following up with you tomake sure everything is done at the right time.If you have any questions, at any time, GIVE ME A CALL!(970) 456-1860.Julian Hardaker, ABR, CRSOwner / BrokerThe Best Way Home

Table of ContentNext Steps Home InsuranceEarnest Money Transfer UtilitiesTitle Commitment Final Walk-Through and ClosingInspections Final Settlement StatementSurvey The ClosingThe AppraisalFinal Loan Approval THE BEST WAY HOME | 3

What should I do now? Next Steps Even though you are now “under contract,” you, as the buyer(s), have several deadlines to protect you in case we encounter issues with the property. Up to the inspection objection deadline, 05/11/2017, you can decide to terminate the contract for absolutely any reason. After this deadline passes, the only reason to terminate the contract would be if something out of your control prevented you from buying the property. For example, if your bank decided they were not willing to lend you the money. Here is a summary of the pieces you will need to take care of between now and closing:THE BEST WAY HOME | 4

What should I do now?Deposit Earnest Money.Line up home inspections.Line up Home Insurance Policy.Line up survey (if you decide it is necessary).Have an attorney review title work if you have questionson it.On “Loan Conditions” deadline, verify that loan is 100%approved with your lender.Line up moving truck and schedule time off for day ofclosing.Call to have utilities put in your name for the day ofclosing.Schedule final walk-through for day of closing or daybefore.Go over “Settlement Statement” with your lender.If you are bringing money to closing, get a cashier'scheck for the exact amount.Bring your ID and cashier's check to closing.Sign the papers and get the keys to your new home! THE BEST WAY HOME | 5

What should I do now? ▪ Along with these pieces, you should be in regular contact with your lender. It is likely that your lender will ask you for multiple additional documents, and it is important you get them to your lender as quickly as possible. ▪ With the tightened requirements placed on lenders, this can be a frustrating process. You need to trust your lender and understand they are working for you to get your loan approved.THE BEST WAY HOME | 6

IMPORTANT:Prior to closing date, please...▪ Do not allow companies to run a credit report▪ Do not buy a new car or anything else on credit▪ Do not quit your job! ANY ONE OF THESE THINGS COULD JEOPARDIZE YOUR LOAN! THE BEST WAY HOME | 7

Earnest Money The first thing you need to do is deposit the earnest money right away. You can deliver the check to Gold Star Realty in the amount of $3,000. Even if we have to terminate the contract, as long as we respect the deadlines, the earnest money will be returned to you. At closing, the earnest money you have deposited will be put towards any money you need to bring.THE BEST WAY HOME | 8

Title Commitment▪ When buying a property, you need to be sure that there are no title issues that could cause problems. At the most basic, you need to be sure that the seller can transfer the title to you without any liens remaining with the property.▪ The title company researches the title history and issues a “Title Commitment.” This is a type of insurance policy that says they will reimburse you in the event of issues arising after closing that were not excluded on their title commitment.▪ The Title Commitment can be complicated to read and understand. If you have concerns about it, you can have an attorney look it over for you. THE BEST WAY HOME | 9

Inspections Your inspection objection deadline is 05/11/2017. ▪ This is probably the largest purchase you will ever make and we strongly recommend you have the property thoroughly inspected. ▪ As well as the regular “Home Inspection,” you will want to consider the following additional inspections which you can discuss with your home inspector: Radon, Sewer line scope (if on city water), well, septic and water quality test (for rural properties). You should also ask your home inspector if s/he recommends any additional inspections not listed here. ▪ Attached to this document is a list of inspectors who have served our clients well in the past. Remember you have to pay for these inspections at the time of the inspection. If this is a bank owned property, check with your agent to see if utilities are on.THE BEST WAY HOME | 10

Inspections ▪ After the inspections have been completed, if there are items you deem unsatisfactory, we can submit an “inspection objection” to the seller. ▪ This may involve asking for the seller to make repairs, reduce the price, or make a credit to you at closing. The seller can agree, refuse or offer an alternate resolution. If agreement is reached, the contract continues. If not, you as the buyer decide whether to terminate the contract or move forward anyway. (****Properties with well and septic**** – A well test is always recommended and is expensive (Currently $780 through Samuelson Pump – For the septic, we can sometimes have seller pay to have it pumped and inspected if they haven't had it pumped recently – It is prudent to have some sort of inspection of the septic system).0 THE BEST WAY HOME | 11

Survey ▪ Occasionally a property may have “encroachments” or “boundary” issues. This is not very common with properties in established neighborhoods and is typically more of a concern with larger rural properties. ▪ If you feel that it is important to know exactly how your property is laid out, you can order a survey. ▪ As long as the Title Company does not require a survey, most buyers do not order a survey during the contract. ▪ If you plan on adding a fence in the future, you will need some sort of survey to be completed.THE BEST WAY HOME | 12

The Appraisal▪ Your lender will have ordered the “appraisal”. The bank requires this independent report on the value of the property to make sure it makes sense for them to lend the money (and for you to pay the agreed upon price).▪ If the appraiser values the home at or above the contract price, the contract moves forward. In the event that the property doesn't appraise, either the contract price would have to be reduced, or we may have to terminate the contract (this is extremely rare). THE BEST WAY HOME | 13

Final Loan Approval Your loan approval deadline is 05/31/2017 ▪ On, or prior, to this day, it is essential that you verify with your lender that the loan is 100% approved. ▪ If the lender is still working on clearing conditions, we may need to ask the seller to extend this deadline to ensure that your earnest money is protected. ▪ If this deadline were to pass and your loan was not approved, you would most likely lose your earnest money.THE BEST WAY HOME | 14

Home Insurance▪ You should call a local insurance company to line up a policy for your new home.▪ It’s best you email your insurance agent a copy of the MLS Listing of the home you are purchasing.▪ Tell your insurance agent to call me if they have any specific questions about the home.▪ You will need to sign the application and have them send proof of insurance to your lender. THE BEST WAY HOME | 15

Transfer Utilities ▪ When you’re about 5 days away from closing you should call the utility companies and ask to “Transfer Utilities” for the date of your closing. ▪ The title company will take care of switching the water/sewer service over.THE BEST WAY HOME | 16

Schedule Final Walk-Through and ClosingYour closing date is 06/07/2017 ▪ Let us know what time of day will work best for you to meet at the title company and sign papers. Closings are typically done Monday through Friday between 9:00 a.m. and 5:00 P.M. ▪ The closing should last around one hour. We recommend that you plan at least a 3 hour window for closing in case there are any unforeseen delays. ▪ We should do a “Final Walk Through” of the property you are purchasing within 24 hours before closing to confirm the property is in the same condition that it was in when you agreed to purchase the property, and that all inspections required repairs have been completed. THE BEST WAY HOME | 17

Final Settlement Statement ▪ Three (3) days before closing, you should communicate with your lender because they will need to tell you exactly how much money you need to bring to closing. ▪ The lender has to get final settlement statement with a minimum of 3 days before closing and you have to sign receipt of it. ▪ If that doesn't happen we have to push back closing to 3 days after the day you sign receipt of it.THE BEST WAY HOME | 18

The ClosingOn the day of closing, all signers will need to bring thefollowing: Driver’s license or Passport Cashier's Check in the amount you are required to bring to closing (your lender will be the one to give you that amount. The Cashier's Check should be made out to the Title Company).REMEMBER..ANY QUESTIONS...CALL ME ON (970) 456-1860.Julian Hardaker, ABR, CRSOwner / BrokerThe Best Way Home THE BEST WAY HOME | 19

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