30 Days to Close: What Happens After Your Offer is Accepted

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Where homeownership education takes flight! After the Offer – 30 Days Until Ownership A Complete Guide to what happens after the offer is accepted Thank you for attending We will begin in a moment Class Scheduled to begin at 6:00pm Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation 1-866-667-6724

description

Once your Purchase offer is accepted, that's where the stress really starts to kick in! We walk you through the people, the process and the timelines that you can expect once you get your offer accepted. These are the slides from the online webinar, please feel free to contact us for questions or more information

Transcript of 30 Days to Close: What Happens After Your Offer is Accepted

Page 1: 30 Days to Close:  What Happens After Your Offer is Accepted

Where homeownership education takes flight!

After the Offer – 30 Days Until OwnershipA Complete Guide to what happens after the offer is accepted

Thank you for attending

We will begin in a momentClass Scheduled to begin at 6:00pm

Homeownership Educator

Scott SchangBranch Manager

Broadview Mortgage Corporation

1-866-667-6724

Page 2: 30 Days to Close:  What Happens After Your Offer is Accepted

Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Purpose and Goals of this Class

• Purpose: To Create and Empower Homeowners

• Goal: Introduce you to the buying process after the offer is accepted and demystify the steps to buying a home

• Goal: Educate you about the time lines and coordinated efforts of everyone involved in the home buying process

• Goal: Empower you with the ability to understand the process and reduce “surprises” throughout the purchase of your home

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

Topics we will cover

• A Brief Overview of the home buying process

• The Players: Who’s working on your purchase?

• The Timeline: what needs to take place and by when

• The Contingencies, Who needs to do what by when?

• What can go wrong, why, and what options you have

• The Home Stretch – “It’s not over ‘till it’s over”

Page 4: 30 Days to Close:  What Happens After Your Offer is Accepted

Where homeownership education takes flight!

After the Offer – 30 Days to Own

Ask Questions throughout presentation

• You may type questions in at any time during the presentation – Questions box on your screen

• Homeownership experts are standing by to answer your questions during the presentation

• This is an interactive learning environment. You will get the most value by having your specific questions answered

• The only dumb question is the one you don’t ask

Write this number down in case of technical difficulty

1-866-667-6724

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

Overview of the Home Buying Process

• Offer is accepted

• Escrow is Opened

• Inspections are completed

• Loan approval is Finalized

• Loan documents are drawn and signed

• Loan funds / Loan records

• Close of escrow – purchase complete

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

Overview of the Home Buying Process

• Two ways you can receive acceptance of your offer

• Verbal Acceptance– Common with short sales and foreclosures– Seller’s agent relays “verbal” acceptance by seller– Contract is accepted by loss mitigator on behalf of selling

bank, still requires “final” signatures – red tape– Escrow is opened, process starts, pending executed

contract

• Fully Executed Contract– Both buyer and seller signatures are on “final” purchase

agreement

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Players – Who they are

• Who’s working on your purchase?– Seller’s Agent

• Transaction Coordinator

– Your (Buyer’s) Agent• Transaction Coordinator

– Escrow Company• Escrow officer / Assistants• Title Company / Representative

– Lender providing financing for your purchase• Loan Officer• Loan Processor• Loan Underwriter

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Players – What their roles are

• Seller’s Agent– Responsible for communicating the terms and interests of

the seller to escrow and buyer’s agent• Provides escrow and title information to buyer’s

parties…ie – Agent, Lender• Responsible for “seller’s side disclosures”

• Your (Buyer’s) Agent– Responsible for communicating with Seller’s agent to

receive all seller disclosures and make arrangements for entry into property for inspections / appraisal

– Orders home inspection– Responsible for communicating to you status of process

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Players – What their roles are

• Escrow Company– Third party coordinator of all contracts, reports, monies,

addendums and instructions by all parties involved• Collect and hold deposit / earnest money • Collect and hold down payment

– Order the preliminary title report from title company

– Title Company researches “chain of title” to establish free and clear rights to ownership of property

• Insurance provides guarantee clean title

– Ensures that the instructions laid out in the purchase contract and the terms of the loan approval are all met

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Players – What their roles are

• Lender providing financing for your purchase– Loan Officer – Communication of terms, conditions and

status of loan approval to you, your Agent and any other parties that wish to be in the loop

– Responsible for coordinating all communications and needs from Loan Underwriter and Loan Processor to you for the purposes of final loan approval

– Loan Processor - Communicates with escrow, title, loan officer, buyer, seller’s agent, buyer’s agent to coordinate the receipt and delivery of required documents required for loan

– Loan Underwriter – Receives and reviews all contracts, addendums, inspections, appraisal, income and asset documentation, credit profile for compliance with underwriting guidelines of the loan you have applied for

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

Time Line for the Buying Process

• Escrow period establishes closing date• 30 days is normal• Longer or shorter is possible and common if all parties

agree

• Contingency Period– 17 days for financing / Appraisal - default– 10 days for inspections – default

• Finalization of Financing– Prior to documents (PTD) conditions approved - ASAP– Lender draws loan documents to be signed – 24-48 hours– Buyer signs loan docs – back to escrow/lender - 24 hours– Loan docs reviewed – 24-48 hours– Prior to funding (PTF) conditions met - Funds 24-48 hours– Record loan – Next day usually – 24 hours

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Contingencies

• Contingency Period establishes time line for performing certain requirements of purchase contract

• If the result of a contingent action causes you or seller to back out of purchase – all monies would be returned and both parties would be held harmless

• California Association of Realtors 8 page purchase contract keeps contingencies in place until close of escrow unless otherwise specified or released

• A buyer that makes a “contingent offer” means that they must close on the sale of existing home prior to closing on new home – not as attractive to sellers

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Contingencies

• 17 days for financing / Appraisal – Default– Lender is responsible for placing appraisal order– Appraisal is ordered on day of acceptance - $350-$450– Typical turn around is 3-5 days– Received and reviewed by lender – 24-72 hours

• 10 Days for optional buyer Inspections– Buyer’s Agent is responsible for disclosing to buyer options

and rights for performing inspections on property– Home inspection is recommended at very least - $250-

$350– Buyer is responsible for choosing to perform non-required

inspections – Agent can refer professional services

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

What Can Go Wrong• Many things can happen that would cause the

purchase to go “sideways”– Some you can control / Some you cannot control

• Financing challenges– Changes in your employment– Changes in your reserves / funds to close– Personal Liens, judgments, levys that “pop up”

• Inspection challenges– Appraisal uncovers health or safety issues– Appraisal determines value is lower than sales price– Home inspection uncovers extensive challenges to

condition– Pest/termite, Hazardous materials, other inspections

uncover conditions which are not appealing or acceptable

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

What Can Go Wrong• Many things can happen that would cause the

purchase to go “sideways”– Some you can control / Some you cannot control

• Preliminary Title Report– Title search uncovers liens, zoning challenges that would

create challenges with providing insurance

• Condominium Projects– There can be challenges with financing for certain

condominium projects if the following are present:• More than 40-49% non-owner occupied• Certain cases of litigation against HOA• High % of HOA dues delinquent

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

What options you have • Depending on the challenge – there are options• Financing challenges

– Communicate with your loan officer and act quickly to produce documentation/paper trail to explain discrepancies

• Employment gaps, changes of employers / pay• Reserve documentation if funds move often or are

difficult to source – large deposits are red flags• It NEVER pays to be elusive with your loan officer

• Inspection challenges– You may have just saved yourself lots of time and money

by performing thorough condition inspections – back out– Go back to seller and ask to have conditions cured to

proceed with purchase of home– Value comes in low – Most sellers will reduce sales price

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

What options you have • Depending on the challenge – there are options

• Preliminary Title Report– There’s not much you can do as a buyer to resolve title

issues– Have seen subordinate liens pop up – seller or buyer may

resolve issue of compensation to lien holder– Title company typically will try to find resolution to challenge– Title company ultimately determines whether or not they

will insure against clouds and insure as free and clear title

• Condominium Projects– Lender decision – challenges with condominium projects

affect the salability and insuring of mortgage on secondary market

– Some lenders have higher tolerance for risk than others

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

The Home Stretch

• It ain’t over ‘till it’s over – Anything can pop up at almost anytime – Don’t be alarmed – it’s normal

• Challenges are common – fatal challenges are NOT

• Communication is key – make sure you ask your agent and loan officer “Ok, what’s the next step and when can I expect to see it completed?”

• Manage your expectations based on actual events and not on anticipated results – you’ll sleep better at night!

• Do not push your loan officer or agent to give you answers or status when you don’t like their first answer – trust that they are keeping you informed

Page 19: 30 Days to Close:  What Happens After Your Offer is Accepted

Where homeownership education takes flight!

After the Offer – 30 Days to Own

Wrap up and Take Aways

• Demystifying the process is a huge step toward being in control of the process – Ask lots of questions about anything you don’t understand

• Do not let “fear of the unknown” cause undue stress educate yourself about the process, manage your expectations

• Since the communication and the experience of your professional team are so vitally important to the home buying process – make sure you take your time, do your homework and purposely choose a qualified “team”

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Where homeownership education takes flight!

After the Offer – 30 Days to Own

Wrap up and Take Aways

• Broadview Mortgage Corporation is a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs

• We are more than happy to be your “second opinion” if you are already working with someone

• We are more than happy to recommend a qualified Real Estate Agent that we have interviewed and worked with – Shares our values

Page 21: 30 Days to Close:  What Happens After Your Offer is Accepted

Where homeownership education takes flight!

After the Offer – 30 Days to Own

Wrap up and Take Aways

• You will receive a “Thank you” email with links to the information we’ve talked about here today including

– Copy of Workbook / Notes– Links to topics we discussed in class– Secure on-line loan application– Dream Home Finder request– A schedule of all upcoming classes

Page 22: 30 Days to Close:  What Happens After Your Offer is Accepted

Where homeownership education takes flight!

Thank You for AttendingIf you enjoyed this class – Tell a friend

Please tell us how we’re doingFollow up email includes a link to “Praise” page

Your feedback is greatly appreciated

For more information

1-866-667-6724Homeownership Educator

Scott SchangBranch Manager

Broadview Mortgage Corporation