You have experienced the introductory process, met with your Real Estate Sales Representative, and received the Lead Paint Brochure and the Statements of Disclosure Brochure containing the Consumer Information Statement and the Affiliated Business Arrangement. You have read and acknowledged the Agency Brochure; I have provided you with a copy for your records. You understand that your agent, Joanne Zitz of Friedberg Properties will be representing you as a Buyers’ Agent or Disclosed Dual Agent. You will now advance to the first phase of the home buying process.

Mortgage Pre-approval Process

The best way to establish yourself as a serious purchaser is to complete the mortgage pre-approval process. Your mortgage representative will issue a pre-approval document to submit with your purchase offer when you choose the right home for you. This document will actually be a mortgage approval, subject only to an appraisal and not a standard pre-qualification letter.

Preview Homes
You will then preview homes that suit your lifestyle and your financing options. After you have determined that you wish to purchase a particular home, next step will be the Negotiating Process.

Negotiating the Purchase
Your sales Associate will prepare a Contract of Sale containing all of the pertinent information to complete the sale, including
• The Purchase Price
• The Property Description and Classification
• The Mortgage Clause
• The Inspection/Engineering Clause
• The items included or excluded in the sale
• The Closing Date
• The Agency Declaration Clause
• Opinion 26 Rider
• The Lead Paint Disclosure Form
• The Seller Disclosure Form (if one was completed by the seller)

After you have reviewed the Contract, you will sign it, and submit your earnest money deposit check for $l000 to your Real Estate Agent. The Agent will then make an appointment with the listing agent to present your offer to the sellers. The sellers will have the options of accepting your offer, rejecting your offer, or submitting a counter-offer for your consideration. There may be several days of negotiating before you and sellers come to a firm agreement and finalize the contract.

Attorney Review
After the contracts have been signed and initialed by all of the parties, the contracts will be submitted to both attorneys for review and clarification, if you both choose to be represented by counsel. Your attorney may discuss changes with you, and then discuss the proposed changes with the sellers’ attorney. THE CONTRACT WILL NOT BE FINAL AND BINDING UNTIL BOTH ATTORNEYS HAVE APPROVED OF THE CONTRACT AND DECLARED IT FINAL. The usual period for the Attorney Review process is 3 business days, but often several extra days may be needed when changes have to be renegotiated and accepted. Once the contract is finalized, it becomes binding on that day, which becomes the Official Contract Date; counting the days for the mortgage commitment and the engineering inspections begin on the Official Contract Date.

Home Inspections
The next steps will be the Engineering and Termite Inspections, and the payment of the additional deposit monies, in accordance with the Contract. Your attorney or your Real Estate Agent can provide you with a list of Home Inspection Companies to contact. The inspection must be completed in the prescribed time frame, usually within l0 days after the Attorney Review period. The Inspection Company will prepare a written report of their findings, and the inspection will cover the foundation, roof and structure, windows and doors. It will also cover the plumbing; heating, air conditioning and electrical systems, a room-by-room description, and the report will highlight any repairs needed or items to be replaced.

After you have received your report, your attorney will discuss the results with you. Should any adverse conditions or major repairs be revealed, your attorney will discuss them with the sellers’ attorney. If there are any major physical flaws, or structural damage to the property, your attorney may advise you to cancel the sale in accordance with the contract. However, most problems are minor, and the sale normally proceeds after some adjustments are made between the parties. Since most homes are sold in “as is” condition, the home inspection is not used to renegotiate the price for cosmetic or minor repairs; it is used to verify the structural integrity of the major components and to address problems that were not visible at the time of your property preview. If the sellers do not offer a Home Warranty Policy, your agent will offer you the opportunity to purchase a Home Warranty.

Additional Deposit Monies
In accordance with the contract, the additional deposit monies are due on the date specified in the contract. Normally, the sellers’ attorney holds the deposit money in his/her escrow account until title closing; however, at times, the Selling Broker is instructed to hold the escrow deposit and deliver it on the closing date.

Mortgage Application

When you complete your mortgage application with your mortgage representative, you will need to provide the following information:
• Checking and Savings Account number, CD numbers
• Current loan account numbers (auto, student, mortgage, etc.)
• Credit card account numbers, with and without balances
• Account numbers of your paid loans and accounts
• 2 recent pay stubs for each buyer
• Copies of your last 2 years income tax return, W2’s & l099s
• A list of your assets, collections, furniture, jewelry, etc.
• Social security numbers
• Copies of your last 2 bank statements and Savings passbook

Property Appraisal
After your mortgage application has been filed, the mortgage company will order a property appraisal, complete your credit history, verify your employment, and verify your down payment and closing costs. During this time, you may receive correspondence from the Mortgage Company requesting additional information. BE SURE to notify your attorney and your agent when this occurs. Both will be able to help you provide and fax the information back to the mortgage company so there won’t be any delays in meeting your commitment date.

While your loan is being processed, you will receive truth-in-lending information letter from the Mortgage Company; again, your sales agent, or your attorney can answer any questions you may have. Your sales agent works in concert with the attorneys involved in the sale, and will provide and coordinate the information needed to close the transaction.

Final Mortgage Commitment

When you receive your mortgage commitment, you will bring it to your attorney, who will review the terms and conditions of the loan with you, and the “point structure, if any.” You will then sign the commitment, accepting the terms and conditions.

Title Insurance and Property Survey
Your attorney will order title work for the property. This is a procedure that searches the history of ownership, and reveals any liens that have to be satisfied before the property title can be closed. While the title search and title insurance are being obtained, your attorney will also order a survey.

When the title package is complete, your attorney will send it to the Mortgage Company, along with other necessary closing documents; most Mortgage Companies require 7 to l0 business days to review the package and issue the Mortgage proceeds check so the closing can take place.

Preparing for the Closing
You will be responsible for the following items, so your move will be coordinated and convenient for you.
l. Two weeks before closing order your homeowner’s insurance; deliver it and the paid invoice to your attorney.
2. One week before the closing
a. Notify the Post Office of your change of address
b. Notify the Phone Company to disconnect service at your former address and install service at you new address.
c. Notify the utility companies to change the account to your name, and take meter readings on the closing date. BE SURE TO TELL THEM NOT TO DISCONNECT THE SERVICE…
d. Ask you attorney how much money you will need at the closing, because you will need certified funds or a bank check.

Closing Day
On the day of closing, or the day before, you Real Estate Agent will accompany you to the final walk-through so you can inspect the property one last time before taking ownership. At this time, the seller will explain the operation of the furnace, appliances, etc., and answer any questions you may have about the home. If the seller is not present, take notes, so that you can ask your questions at the closing. Your Sales Agent should also attend the closing and answer your questions.

I know that buying a home may seem to be an overwhelming experience at first; it will be an exciting and pleasurable experience when you know what to expect. I hope this information will be enlightening and helpful to you. I look forward to assisting you in the purchase of your new home, and we will be glad to support you in any way. I will do my very best to make your home-buying experience a pleasant and rewarding one!

Joanne Zitz
Friedberg properties & associates
Realtor