Your Partner In. Process

Transcription

1 Your Partner In The Buying Process

2 US Mortgage Corporation (NMLS ID#3901). Corporate Office is located at 201 Old Country Road, Suite 140, Melville, NY 11747; or (800) (LOANS15). Licensed Mortgage Banker-NYS Department of Financial Services- AK, AL, AR, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MS, MT, NC, ND, NE, NH, NJ, NM, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA, VT, WA, WI, WV, WY State Banking Departments/Regulators. Rates, fees and program guidelines are subject to change without notice. Certain restrictions may apply. Some loans arranged through third parties. First mortgages only. Not all products and/or programs are available in all states.

3 Table Of Contents Recruit The Right Team For A Real Estate Purchase.... Page 01 Simplify Home Purchase By Hiring A Real Estate Agent... Page 03 Assistance Of A Home Inspector And Appraiser... Page 05 The Importance Of Title Companies In Property Purchase... Page 07 Assistance In Financing Your Home Purchase.... Page 09 Players Involved In Processing The Purchase Agreement.... Page 11

4 The real estate market is not a sport. Nevertheless, it does require a lot of effort and involves many players. As a buyer, you need to spot the right members to help you through the process or it might just get complicated and take a long time to purchase a home. Your team does not only help to speed up the home buying process, but also assists you in acquiring good deals and reducing expenses where necessary. For a first-time buyer, the entire process of purchasing a home might seem quite intense and intimidating. It helps to have assistance and a team that can split all the responsibilities. This makes the entire process simple and easy. There are many steps involved in home buying. You will have a lot of groundwork, paperwork, and deadlines to keep track of, and the team you recruit must work efficiently to cover all bases. Each player has to be trustworthy and able enough to communicate details in a comprehensive manner. The team has to serve you effectively and prioritize your needs and decisions throughout the process. Since, the players in the team decide on how the buying process goes, you have to be careful while choosing the members. The major professionals you would encounter in a typical home buying process are real estate agents, mortgage brokers, mortgage lenders, escrow officers, title investigators, attorneys, appraisers, and home inspectors. In the next few chapters, you can learn about hiring the right professionals for every step while you proceed toward purchasing a home. Recruit The Right Team For A Real Estate Purchase 01

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7 Simplify Home Purchase By Hiring A Real Estate Agent Real estate agents play a very important role in the home buying process. They have a database of all information related to the real estate market. They are the most resourceful people you can hire to assist you right from the beginning to the end of your purchase. Real estate agents are also known as realtors. They are licensed professionals associated with the NAR (National Association of Realtors). Their basic profile is to liaison between you and the seller to carry out the transaction. The real estate agents have access to a common database that includes all properties in the country. Depending on your budget, the type of property, and the location you desire, your agent will assist you in narrowing down your search. An agent also provides information on the market values for various properties and enlightens you on the various options to lower your financial burden. They negotiate prices with sellers and draw up purchase agreements. Most first-time buyers hesitate to hire agents in the fear of having to pay a huge commission. While working for sellers, real estate agents are entitled to a commission for helping to sell a property. A real estate agent includes the commission charges in a brokerage contract. Usually, a seller offers to pay the commission on behalf of a buyer. Real estate agents have professional contacts with mortgage brokers, lenders, appraisers, title companies, and other members involved in a home buying process. Your real estate agent must be smart, resourceful, efficient and trustworthy as he will assist you from the first to last step of the home buying process. 04

8 After scouring various properties, you would be able to find one that you wish to purchase. As a first-time buyer, you might miss out on certain issues during inspection of the property. It is advisable to hire a professional to inspect the property so that you do not face any problems after purchase. The foundation, construction, electrical systems, plumbing, and other important structural aspects of a property might seem in perfect shape. Sometimes, there may be faults that can give you an advantage in negotiating prices with the seller. A home inspector will be qualified to judge the functional aspects of a property. If there are major defects in the property, then you could be saved from purchasing a property that was not worth its value. Once the home inspector presents his findings, you can approach an appraiser to estimate the value of the property. If you ever doubt that the value of a property is high, you can always confirm with an appraiser and negotiate the prices with the seller. When you wish to buy foreclosed homes, it is difficult to inspect the property to determine its value before purchase. Here, a home inspector can discretely carry out his investigations, and his findings can be useful to an appraiser to estimate the worth of the property. In any home purchase, it is highly advisable to hire a home inspector and an appraiser so you may not have to pay more than the worth of a property. Assistance Of A Home Inspector And An Appraiser 05

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11 The Importance Of Title Companies In Property Purchase You may have heard of title investigators who play a key role in the home buying process. These people not only save buyers from disputed properties, but also help to clear title and ensure complete ownership rights. Certain properties might have clouded titles due to property inheritance through generations. You may not know who the rightful owner of the property is or the property may be divided between many heirs. In such cases, after purchase you may have to face problems relating to ownership disputes. A long-lost heir might return to reclaim property ownership. Sometimes, you may also end up having to pay property liens related to previous owners of the property. To avoid such problems, you must hire the services of a title company to investigate ownership details. A title officer or investigator attends to all issues relating to the ownership deed of a property. When you apply for a mortgage loan, a lender might request to see a clear title for the property to ensure there are no other liens related to the property. You can even purchase title insurance from title companies.. This will protect you from any future ownership claims to the property. Title insurance might seem unnecessary and expensive but is quite useful while purchasing properties that have been passed down through generations. In most cases, a seller is given the option to choose a title company. 08

12 If you have funds to finance the purchase of a property, then you do not have any problems in this step. In case you are a buyer looking for a mortgage loan, there are a few things to consider. A professional from a bank, a financial bureau or any lending agency can assist you in the process of obtaining a loan. Though the process is not so simple, it could be made easy by hiring a mortgage broker. Mortgage brokers are liaisons who mediate the loan approval processes between a lender and a buyer. A mortgage broker will know about the various loan options available for the type of real estate investment you wish to make. He can assist you in finding the right lender and apply for loans that charge low interest rates on the principal amount. A lender is the main player in the entire process of home purchase. Your lender will approve your loan application and determine the interest rate you would have to pay. To find the right lender, you may have to take the help of a mortgage broker. Once you have found the right lender, you can discuss your loan options with a loan consultant. Your loan consultant can help you decide on what kind of loan you prefer to fund your purchase. Once you decide on the type of loan, you can meet the loan officer to submit your paperwork for the loan approval process. Mortgage brokers help you fill out the application and obtain all the necessary documents for the loan application. They are not involved in loan approval. To ensure a loan approval, take the assistance of a mortgage broker and a loan consultant. Assistance In Financing Your Home Purchase 09

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14 The other players involved in the buying process hold small but critical roles. Escrow Officer An escrow officer is a very important member in your home purchasing process. They are often confused with title investigators, but their roles are quite different. An escrow acts as a third party in the entire process of home buying. The escrow is responsible for overseeing the final purchase agreement and the loan documents. He will receive and review the paperwork before signing the documents. In loan transactions, the escrow acts as a guardian for the loan, ensuring satisfactory conditions before making any transactions. The responsibilities of an escrow includes holding funds during loan transactions, managing real estate commissions, reviewing property liens, reviewing ownership documents after purchase, and managing fees to be paid for third party services. Attorney For most of the legal paperwork like transfer of ownership rights, you have to hire an attorney to oversee the proceedings. An attorney can advise you on the legal rights and issues and help you make educated decisions when you purchase a property. If you wish to buy foreclosed properties, an attorney can help you through the paperwork and settlement at any of the three stages of foreclosure. Your attorney can also act as a mediator between the seller and you to help communicate the terms of the agreement. Insurance Agent If you wish to borrow a large amount from any lender, you will be required to take a private mortgage insurance Players Involved In Processing The Purchase Agreement 11

15 to protect the lender against defaults on the mortgage payments. You might also require applying for homeowners insurance to protect your property from any unforeseen circumstance. The situations that might affect your property may be theft, fire, or vandalism. In case of an area prone to natural calamities, this insurance policy is mandatory. An insurance agent will assist you in deciding the type of insurance policy you wish to choose for the property, on considering the factors that may affect the property. The agent will also intimate you on the different offers available on various insurance policies and the premium amount required. Settlement Agent If you do not wish to do all the paperwork in the home buying process on your own, you can hire a settlement agent. This agent can do all the paperwork and ensure that all the terms of the contract are fulfilled. Settlement agents must be licensed to work for you. They are very much like attorneys but are not qualified to give you any legal advice. They either work for a buyer or a seller. Hiring them is like outsourcing all the groundwork necessary for the closing and settlement of the home purchase. Now that you know about the people involved in the home buying process, you can make a smart move by assembling your purchase team, right from the beginning of your quest to purchasing a home. 12

16 Corporate Office 201 Old Country Road, Suite 140 Melville, NY On US: 800-Loans