Finding a Home

UNDERTSTANDING

THE HOME-BUYING PROCESS

Verifications

Acceptance of Contract

Mortgage Application

Underwriting

Loan Approval

Sign Closing Papers and Loan Docs

Assemble Documents

Recording & Closing

Escrow Deposit

Inspections Remove Contingencies

Credit Report Appraisal

Rejection or Conditions

Title Exam, Insurance, Survey

MOVING DAY!!

Consultation to Analyze Needs

Get Pre-Approved by Lender

View New/Resale Homes with

your Dedicated Buyer Specialist

Present Offer

Decide to Pay Cash

Choose the right Agent for YOU

Select Home

You Want to Buy a HomeIt’s a BIG decision and there’s a lot to know. But if you have decided that now may be

the right time to buy a home, Our comprehensive, quick reference guide provides key

steps, Information, and tools to find, finance, and purchase a home that meets all of

your wants and needs.

You’re more likely to be satisfied with your purchase if you understand each step, as

well as nuances of market conditions in the area where you want to buy a home. Being

an informed buyer and getting the right assistance-including working with a qualified

agent can make a BIG difference in your home buying experience and the final result.

1. Choosing the Right Agent to Represent YOU.

2. Assess Your Credit and Finances

3. Assess your Wants and Needs in a Home

4. Home Search

5. Negotiate Terms

6. Obtain a Mortgage

7. Prepare for Closing Day

8. Close Escrow

9. Move

10.Celebrate

oregon.gov/rea/licensing/Documents/Sample_Initial_Agency_Disclosure_Pamphlet.

Choosing the Right Agent for you can be difficult but if you understand the relationship

between you and your agent it will help to understand the expectations of that Agent.

Cut and paste the link below into your browser and get all the information about the

topics we have listed below.

Real Estate Agency Relationships

An "agency" relationship is a voluntary legal relationship in which a licensed real estate

broker or principal broker (the "agent") agrees to act on behalf of a buyer or a seller (the "client") in a real estate transaction. Oregon law provides for three types of agency

relationships between real estate agents and their clients:

Seller's Agent -- Represents the seller only.

Buyer's Agent -- Represents the buyer only.

Disclosed Limited Agent -- Represents both the buyer and seller, or multiple buyers

who want to purchase the same property. This can be done only with the written permission of all clients.

The actual agency relationships between the seller, buyer and their agents in a real estate

transaction must be acknowledged at the time an offer to purchase is made. Please read this pamphlet carefully before entering into an agency relationship with a real estate agent.

➢ Definition of “Confidential

Information”

➢ Duties and Responsibilities of a Seller’s

Agent

➢ Duties and Responsibilities of a

Buyer’s Agent

➢ Duties and Responsibilities of an Agent

Who Represents More than One Client in

a Transaction

Choosing the Right Agent

to Represent YOU.1

Benefits of Buyer AgencyAlthough the typical agency agreement spells out the fiduciary duties an agent must fulfill for the seller, the buyer is often left, in a sense, unrepresented. However, buyers too have the option of being represented exclusively by their own agent. Consider the following benefits:

1) LoyaltyThe real estate agent must act in the best interest of the buyer.

2) ObedienceMust follow the lawful instructions of the principal (buyer).

3) Disclosure of all material factsExamples, but not limited to:

• Relationships between agent and other parties• Existence of other offers• Property’s true worth• Status of earnest money• Commission split with other brokers• Seller’s financial condition• Legal effects of contract provisions

4) ConfidentialityAny discussions, facts or information can be shared freely with the kind of

CONFIDENTIALITY you expect from someone working in your best interest

5) Accounting in dealingsReporting of where any money placed in the hands of the broker is kept

6) Reasonable skill and care• Arriving at a reasonable purchase price and advising buyer of such.• Affirmatively discovering material facts and disclosing them to the buyer.• Investigating the material facts related to the sale.

Your Home Buying Specialist

should be committed to assist

you with…1) Locating the best home for your needs.

2) Negotiate the lowest price.

3) Secure the best financing.

4) Meet your home buying needs with the least

amount of hassle.

5) Provide you with superior client service.

Email: Bendrealestateworks@gmail.com If you would like

to speak with a Home Buying Specialist about

representing you.

Determine Your Credit StatusBecause any mortgage lender will review your credit history, It’s wise to verify your

credit rating in the beginning of your home search. Even if you are sure you have an

excellent credit record, there may be blemishes in your credit history about which you

are unaware. Identifying and resolving any credit problems to improve your credit

rating will provide benefits, such as preferred rates from lenders and home insurers.

Acquiring a copy of your credit report is simple. Three major credit bureaus- Equifax,

Experian, and TransUnion- Compile consumer credit data. The Fair Credit Act allows

consumers to obtain one free credit report from each of the three major reporting

bureaus every 12 months. To obtain a copy of your report, visit annualcreditreport.com

or call 877-322-8228. While you can find many other sources for credit reports, this is

the only one authorized by the Federal Trade Commission

53.9%

500-549 550-599 600-649 650-700 700-749 750-799 800+

0.02%

0.34%

8.2%

21.2%

24.5%

32.7%

13.0%

FICO Score

Distribution 731754

687

708

All Loans Conventional FHA VA

Average FICO Score

Assess Your Credit

and Finances2

Financing

Pre-Approval ProgramMany buyers apply for a loan and obtain loan approval online before they meet with an

agent and begin looking at homes for sale. If that is what you have done, great!

If you have not completed this process yet, it is one of the very things your Home

Buying Specialist can help you accomplish before beginning the home buying process.

Its as Easy as 1-2-31.A home loan credit report is generated by the credit bureau

2.Your employment, bank accounts and rental payments (if applicable) are verified

3.All information is forwarded to the underwriter for approval

Rates and TermsTwo of the most important factors in choosing a mortgage are the interest rates and

terms. Combined with the amount you borrow, they will largely determine the amount

of your monthly payment.

The interest rate is the percentage of the loan you are charged to borrow money; the

higher the rate, the more you pay. Your monthly payment will also be hinged on the

term of your mortgage. Paying off the same total loan amount at the same rate over

less time will result in a higher monthly payment. To determine monthly payments for

different rates and terms, use the mortgage calculator at REALTOR.com®.

Mortgage rates change, subject to various economic factors. To be more certain of

what they will pay, most buyers lock in an interest rate when they apply for their

mortgage. A lock means that the rate in the approved application will be valid for a

set period of time-during which the deal must be closed-regardless of what the

market interest rates are doing at the time of closing.

With fixed-rate mortgages, usually 15 or 30 year terms, you pay the same rate over

the life of the mortgage. With an adjustable-rate mortgage, or ARM, the interest rate

changes after a predetermined number of years.

Pre-Qualification / Pre-ApprovalTypically you will first pre-qualify for a mortgage, then get pre-approved before you

find the specific home you wish to purchase. It’s essential to understand the

difference, and to clarify which your lender is providing:

Pre-qualification: An informal determination by a lender or a mortgage broker stating

the amount of the mortgage you can afford.

Pre-approval: A guarantee in writing by a lender to grant you a loan up to a specified

amount (subject to receiving full documentation)

3 Key Benefits to Loan Pre-Approval

1) You know exactly HOW MUCH YOU CAN AFFORD

(Eliminating wasted time looking at homes that are above or below your price

range)

2) You get the BEST FINANCING (I.e. lowest interest rate, lowest

down payment, which will allow you to get the most house for your money)

3) You can make a STRONGER OFFER (You get the power of

immediate action, you can beat out other buyers and you can negotiate the

lowest price & best terms)

Down Payments

&

Mortgage InsuranceTo help insure that buyers have some “skin in the game,” lenders require a down

payment on mortgages. Typically, down payments may range from3 to 10 percent of

the appraised value of the home.

You can obtain a mortgage with a lower down payment, but you will need to obtain

mortgage insurance, which helps protect the mortgage underwriter from default.

This is an additional monthly expense that you will need to consider when

evaluating the total cost of homeownership.

Next StepsWhen you are ready to make your mortgage

application, several additional steps and

documents will be required. See step 6 for more

details on obtaining your mortgage.

Email: Bendrealestateworks@gmail.com If you would

like to have a Preferred Lender assist you through the

Pre-Approval Process.

Assess Your Wants

and NeedsFinding a new home can be exciting. But deciding what you truly want and

need-and within your budget-can be challenging. Making these decisions begins

with setting priorities among many different preferences. Most home buyers

invariably face trade-offs.

Your Agent can play a key role in helping you sort out your options. They can

offer different insights specific to your local market. Be sure to discuss these

and other preferences with your Agent

3

Avoiding the Most Common

Mistakes Home Buyers Make….1) Not understanding the local market and all that is

available.

2) Thinking that it is both safe and easy to buy a foreclosure

and short sale homes. This is a biggie!

3) Not understanding pricing and the value of certain

amenities.

4) Weak negotiating. This mistake alone can cost the buyer

thousands of dollars

5) Not requiring the proper inspections and/ or not

understanding these reports when an inspection is done.

6) Not understanding the importance of being pre-approved

by a Lender prior to beginning the home buying process.

Understanding the Different

Types of Homes Available

Distressed Properties: Short Sales, Foreclosures and

REO’s

Purchasing a distressed property can be a time-consuming process, but you can

also get a great deal on a house you love.

A SHORT SALE occurs when a homeowner sells their home for less than

(short of) what they still owe on their mortgage and their bank has agreed to

accept the proceeds from the sale as payment in full of the loan balance.

A FORECLOSURE occurs when a homeowner has defaulted on the

mortgage and lender initiates a foreclosure against the property. The property will

eventually be put up for sale at auction.

A REAL ESTATE OWNED (REO) occurs when the bank has

successfully foreclosed on the property and the foreclosure auction did not result

in a sale to an outside bidder. Thus ,the lender ends up as the new “owner” of the

home.

Distressed properties often have challenges not typically found with a traditional

real estate transaction.

What You Should Know About

Buying Distressed Properties:Buying a short sale or REO property is a complex process. The overview below is

intended to give you an idea of what you may face if you decide to pursue a purchase

of a distressed property:

Short Sale PropertiesShort Sale properties may often be in better condition than properties that are in

foreclosure, as the homeowner is working with the bank to release them of their debt

and is trying to avoid foreclosure.

Before making an offer on a Short Sale, please keep the following in mind:

Any offer must be approved by seller’s lender.

Because of the required approval process by the lender, approval of your offer (and

therefore the short sale) could take months.

A lender may change the terms of the agreement made between the seller and the

buyer.

Foreclosed Properties (REO)Lenders will typically sell the homes “as-is,” meaning that REO properties will often

need repairs.

Before making an offer on an REO, please keep the following in mind:

The lender most likely will not agree to make any repairs to the home.

The lender may require you to finance with them.

While most REO properties are already vacant, there is the possibility of tenant

problems which may cause a delay in closing, and may also increase the price.

If you are not using the REO bank as your lender, it is possible that certain repairs

will be required to be made to the property before your lender will agree to close

NEWLY CONSTRUCTED

AND RENOVATED BUILDINGSWHY USE AN AGENT TO PURCHASE A NEW HOME?

The advantages of having an agent help you purchase a new home are the same as

those for purchasing a resale home…

Knowledge of the market

Help in finding the perfect home quickly

Expertise in contract writing/negotiation

Closing assistance

The builder has a professional representative watching out for his/her interests, and

you need the same expert representation. Buying a new home or newly renovated

property is a little more difficult and time-consuming than buying a

resale. Our team can professionally guide you through this process.

It is very important that your interests be professionally represented when you are

entering into a contract for a semi-custom or a build-to-suit home. These transactions

are complex and the contract details must be exact in order to protect you and to

ensure you get exactly the home you want!

REMEMBER – the Builder often requires that your Agent accompany you on your first visit to the Builder’s sales office in order for your representative to participate in the process.

Email: Bendrealestateworks@gmail.com to have a home

buying specialist assist you through the process of finding

your perfect home.

Home SearchChoosing a home involves choosing a neighborhood.

Although it’s important to consider future resale value,

it’s also important to choose a home and neighborhood

that you and your family will enjoy living in

Your Agent can direct you to helpful sources of information for evaluating

neighborhoods, but may not be allowed to answer all of your questions. This is

because, under federal fair housing laws, it is unlawful for an agent to engage in any

conduct that is discriminatory on the basis of race, color, national origin, sex,

handicap, or familial status.

Scout out the Neighborhood!

4

It is important that you scout the neighborhood in person. You live in more than your

house.

Talk to people who live there. Drive or walk through the entire area at different times

of the day, during the week and on weekends.

Travel to and from places that you would typically frequent to be sure you are

comfortable.

Look for access to major thoroughfares, highways and shopping. Check with local

civic, police, fire and school officials to find information about the area.

Look at traffic patterns around the area during different times of the day and drive

from the area to work.

Is the neighborhood near parks, places of worship, recreation centers, shopping,

theaters, restaurants, public transportation, schools, etc.?

Viewing and Comparing HomesOnce you’ve decided on a neighborhood, it’s time to begin viewing houses. Some buyers

find it helpful to review their home preferences (Home Buyer Analysis Worksheet) and

prioritize their “needs” versus “wants.” Setting up a comparison table with your highest-

priority factors listed first will help you objectively evaluate different properties.

Buying a home is more than an objective decision-there is also a certain amount of

emotion and intuition to factor in. In addition to meeting your criteria, ideally, a home

should “feel right.” If you are not finding what you want, share your reactions with your

Agent so they can help you refine your search.

If you decide to view homes on your own (an open house, for example) make sure the

other agent knows that you are working with someone, and share your Agent’s business

card or contact information, If possible. Be carful not to divulge too many details about

your situation (e.g. motivation to buy a home, timetable to buy a home,) as this may

hurt your future negotiating position if you are interested in the property.

Using WebsitesThe internet makes shopping for a home, even in the preliminary stages, easier than

ever before. Realtore.com®, NAR’s property listing site, provides online information on

millions of properties, as well as information on neighborhoods and other topics. Many

real estate companies and agents have their own sites too, witch often include home-

buying information and links, in addition to property listings.

It’s important to understand, however, that even, realtor.com®, is not an all inclusive

source of real estate property listings. Your agent is still an important source for

property information. He or she can share listing information with you faster and easier

than any public web site, including houses that buyers might not find on their own. Your

agent can also provide the most current details, such as whether or not a property is

under contract.

THINKING ABOUT

BUYING?

WHAT ARE YOU CONCERNED ABOUT?

NOT CONCERNED VERY CONCERNED

LOAN QUALIFICATIONS? 1 2 3 4

HOME VALUES? 1 2 3 4

LOCATION & VALUE? 1 2 3 4

DOWNPAYMENT? 1 2 3 4

MONTHLY PAYMENTS? 1 2 3 4

PREVIEWING HOMES? 1 2 3 4

PRICING? 1 2 3 4

CLOSING COSTS? 1 2 3 4

SHORT SALES & REO’S? 1 2 3 4

APPRECIATION? 1 2 3 4

FINANCING? 1 2 3 4

There’s No Place Like HomeHOME SEARCH INFORMATION

What things are most important to you in a home?:__________________________________

Are schools important? yes no If yes, which ones and why:_________________

Where do you want to live?_____________________________________________________

What style home do you prefer?_________________________________________________

When do you want to move in?__________________________________________________

How many bedrooms?_____________ How many baths?_______________

How many living areas?____________ What size garage?_______________

Where do you work?__________________________________________________________

When is the best time to look at homes?___________________________________________

If we found the right home for you today, would there be anything that could keep you from

buying it? ___________________________________________________________________

Does anyone else have to approve of your purchase?_________________________________

Your Name:____________________________________________ Date:________________

Email this information to:

Bendrealestateworks@gmail.com and let our team of

professionals find the perfect home for you

Negotiate Terms

Making the Best Deal

When deciding what to offer for a property, Current market prices are the most

important factor. Your agent can provide valuable assistance in this regard-counseling

you on the market conditions, price ranges and negotiating strategies.

To help you make a more informed decision on price, your agent may do a comparative

market analysis (CMA) on the property you are interested in buying.

This will give you a better sense of weather the seller’s listing price is higher or lower

than prices of comparable properties and help guide your decision of how much to offer

for the home.

If the property is over priced, the CMA will help you determine a more reasonable price.

It is rarely advisable, however, to make an excessively low offer on any property. The

strategy is more likely to backfire, prompting negative reactions from the seller and

reducing your likelihood of successfully negotiating a purchase.

5

Negotiating Considerations

Beyond price, there are several other factors that can affect your negotiating position.

For example, your bargaining position is strong (the seller will look favorably at your

offer) if:

You are an all cash buyer.

You are pre-approved for a mortgage.

You do not have to sell your current home or meet other contingencies before you can

complete the purchase

With these factors in your favor, you may be able to negotiate a lower price. On the

other hand, in a “hot” sellers market, if your “perfect” home comes on the market, you

may want to offer list price (or more) to beat out other offers.

Your agent may be able to learn more about the sellers situation and motivations.

Knowing factors such as whether the house is already vacant, how long it has been on

the market, and reasons for selling could help you determine how eager the seller may

be to complete a transaction.

Once you have found the home you wish to purchase, you will need to determine what

offer you are willing to make for the home. Negotiations will begin with an initial offer

and conclude with acceptance of the final offer. Real estate transactions require a

written contract, which conveys the initial written offer.

When the seller accepts an offer, it becomes a legal contract. When you write an offer,

you should be prepared to pay an earnest money deposit. Typically the earnest money

deposit should be between 1-5 percent of the purchase price but it is not set by law.

This is to demonstrate that your intention is to purchase the property.

Your offer will specify price, plus all the terms and conditions of the purchase you want

to negotiate. Your agent provides valuable service by helping you use standard forms

that are kept up-to-date with changing real estate laws, which vary from one state to

another.

Your agent can also guide you through structuring your offer and negotiation strategy. If

you have questions about your offer that involve topics that real estate agents are not

allowed to address, such as specific legal or tax advice, your agent can refer you to

qualified experts.

Making an Offer

What Does an Offer Contain?

Keep in mind that if the seller accepts your initial offer, or a subsequent counteroffer, it

becomes a binding sales contract-known in some area as a purchase agreement or

earnest money agreement-and serves as a blueprint for the final sale. That’s why it’s

important that your initial offer contain the terms that you want.

The more demands you make of the sellers, the less favorable they may look on your

offer. Some things, however, should be included in most purchase offers, such as:

Property address (sometimes its legal description)

Sales price and terms (case and monies acquired for the purchase through a mortgage)

Seller’s promise to provide clear title (ownership)

Date for closing (the date the actual transfer of title will take place)

Earnest money, whether a check, cash, promissory note, with provisions for how it will be

refunded if the offer is rejected or kept as damages by the seller if you are found in breach of

contract.

Prorated amounts for payment of real estate taxes, utilities, assessments and other costs that

may be incurred by the seller before closing but not billed to the property until afterwards.

Who will pay for title insurance, surveys, inspections, and similar costs associated with the

transaction.

Type of deed to be transferred

Federal and state requirements, such as environmental review, hazard and property disclosures

Provision for attorney review

Final walk-through inspection shortly prior to closing

Length of time that the offer is valid

Fixtures and personal property that will be included

Protects you from unplanned expenses when you

don’t know how reliable your appliances will be.

Includes furnace, air conditioner and many other

protections that can be extremely valuable in the

event unforeseen trouble occurs.

We recommend your offer

request the Seller Include a

1 year

Home Warranty

Contingencies

A contingency is a term or condition that must be met for an offer to become a binding

contract. Contingencies always weaken an offer. Yet some are considered normal. Some

common purchase offer contingencies include:

Approval of agreed-upon third party inspections within a

stipulated period of time after the seller’s acceptance of the offer. This allows you to

“walk away” from the contract if you find the inspection unsatisfactory. (See Step 7

for more information on inspections.)

Obtaining specific financing terms, such as interest rate and

duration of the mortgage. If you can’t find the mortgage terms you were looking for,

as specified in your offer, you cannot be bound by a contract based on your offer.

Securing a specific job. If buying this home depends on consideration

for a job transfer, you will want to include this provision.

Selling your current home. Sellers may view a contingent sale

unfavorably, but an accepted offer on your home will improve your negotiating

position.

After your offer has been drawn up, it is presented to the seller(s). Exactly who presents

your offer can vary. Your agent may present your offer to the listing agent and the seller.

Or the listing agent may receive your offer from your agent, then present it to the seller.

Other Important Questions

What is earnest money? This is a cash deposit you make when submitting

your written offer on a property to show your “good Faith.” Sellers are understandably

suspicious of offers that are not accompanied by such a deposit. The amount expected

can very by the negotiating situation and from market to market.

You earnest money is held by one of the brokers, the title company, or an attorney. If

your offer is accepted, these funds become part of your down payment at closing. If

negotiations fail to result in a sales contract, your money is usually refunded. These

funds will be handled in accordance with state law.

What are seller disclosures? Most states and many local areas require

sellers to disclosure any known material defects. Lead-based paint disclosure for

example, is required in all states for properties built before 1978. Make sure you read

and understand these documents because your recourse options will be limited once

you sign any disclosures.

What if there are multiple offers? If other buyers are interested in the

same property, the seller may be comparing your offer to others. Multiple offers do

occur, even in slow markets. If you learn that you are in a multiple offer situation, don’t

panic and immediately withdraw your offer. It is quite possible that you have submitted

the winning bid. Stay involved for at least one round of negotiations, but also establish

your maximum price.

The Seller’s Response to

Your Offer

Remember that sellers have already decided how much money they want from the

sale of their property, and have probably planned a negotiating strategy. When your

offer is presented, the seller’s options are to:

Accept. If, after viewing your written offer, the sellers sign their unconditional

acceptance, then you will have a binding contract as soon as you are notified of the

offer’s acceptance.

Reject. If the sellers reject your offer, you are released of any obligation. The sellers

cannot change their minds later and expect to bind you to that offer.

Counteroffer. If the sellers like most aspects of your offer, they may present a

counteroffer that includes the changes the sellers want to make. You are then free to

accept their counteroffer, reject it, or make your own counteroffer to their

counteroffer. The process can repeat it’s self as many times as it takes for you and

the sellers to agree on the sales contract.

A Counter offer becomes a binding contract when either 1) you sign unconditional

acceptance of the sellers counteroffer, or 2) the seller signs unconditional

acceptance of your counteroffer. At this point, negotiations are over and the terms of

the sale are final.

Withdrawing an Offer

Can you take back an offer? In most cases the answer is yes, right up until the moment

your offer is accepted. In some cases, you can withdraw an offer before you have been

notified of its acceptance.

If you want to withdraw your offer after acceptance, be sure to do so only after

consulting a lawyer who is experienced in real estate matters. You want to avoid losing

your earnest money deposit or a lawsuit for damages the seller incurred because of

your actions.

From Contract to ClosingMany details included in the following steps happen or occur simultaneously. You agent

is a valuable resource in helping you keep every aspect of your transaction on track,

from now until closing.

Email: Bendrealestateworks@gmail.com to have a Home

Buying Specialist assist you through the process of writing

an offer

6 Obtain a MortgageIf you have already done the legwork discussed in Step 2, you are one major step closer

to obtaining a mortgage. Still, securing a mortgage is more complex, and often more

expensive, than many customers realize. There are numerous documents and details

that must come together in a short period of time.

This is why it’s important to be organized and find a competent mortgage loan officer.

Your agent has already helped other buyers work through the mortgage application

process and can also provide valuable assistance.

Applying for a LoanIf you have already made an offer on a house, decided what type of mortgage you want,

and selected a lender, your next step is to complete the loan application. Together, your

agent and lender can help you understand:

Pre-application steps

The information your lender needs at the time of your application

Decisions you will have to make at the time of your application

Application costs

Application legal requirements

Closing Costs and the Truth in Lending StatementThere are various costs associated with a mortgage. These might include an appraisal

and origination points. Depending on the amount of your down payment, you may also be

required to pay for mortgage insurance, a policy that protects the lender if you default

on the mortgage. To help you see everything you’ll be paying for the home over the life

of the length of the mortgage, you should receive a Truth in Lending Statement, which is

a federally required good-faith estimate of all the coasts associated with the mortgage.

Mortgage Application ChecklistLender requirements differ, but the following list includes the most common items that

you and any co-borrower will need to supply to your lender. If you were pre-approved for

a mortgage, you may have already completed some of this process. Your application will

probably be approved faster if all required documents are submitted at the same time.

Social Security Number(s) and Birth Date(s)

Photo Identification Card

Paychecks(s): most recent pay stub showing year-to-date earnings

W-2 or 1099 tax forms: for the past 2 years

Employers: names, addresses, and telephone numbers of any employers over the past 2 years

Accounts: current statements of checking, savings, and other accounts

Current Assets: Most recent statement of assets such as individual Retirement Accounts (IRAs),

employee retirement accounts, certificates of deposit (CDs), stocks and bonds. If you own

securities, your lender may require a current brokerage statement with names of the stocks,

value per share, and number of shares owned.

Liabilities: for each outstanding loan, provide the lender with the name and address of the

creditor, monthly payment, and total balance due. Liabilities include auto loans, student loans,

credit cards, and other installment debt.

Current and Previous Addresses: If you currently own a home, provide your lender with the

property address, current market value, current mortgage lender’s name, account number,

current monthly payment, and outstanding balance. If you rent, provide your current address,

the name and address of the landlord or the management company, and, and the monthly rent.

Provide the same information about previous residences. ( Usually this additional information is

only required if you have lived at your current address for less than two years.)

Sale contract: Bring along a signed copy of the completed Agreement to Purchase for the

property you are buying, and amendments to the Agreement, a copy of the listing form for the

property, the legal description of the property, and receipts for earnest money or down payment

deposits already paid.

Special SituationsLenders will require some applicants to provide additional information under certain

circumstances. Check the list below to see if any of these situations apply to you.

Different lenders may have different requirements.

Self-employed or compensated on a commission basis

Provide your federal tax forms for the past two years, along with a current year-to date profit and

loss statement. Employment and business locations of self employed must be independently

verified. Tip income must also be verified.

Separated or divorced

Provide a copy of your divorce decree and separation agreement, including details on alimony or

child support payments. If you receive alimony of child support and would like the lender to

consider these monies as income, provide proof of this income for the last 12 months.

Social security, pension, disability, or any form of public assistance benefits considered as

income

Provide a copy of an award certificate or a check from the issuing agency.

Bankruptcy, foreclosure, or any judgements against you in the past seven years

Provide information about the proceedings. For bankruptcies, documentation should include a

copy of the bankruptcy discharge and a schedule of both debts and assets. Judgments against

you should include an attorney’s letter that explains the outcome of the proceedings.

Department of Veterans affairs (VA) Loan application

Provide your DD214 Form (discharge Papers) or your certificate of eligibility.

Your lender may also ask you to provide documentation that seems odd to you. For

example, if you have been a student, your lender may want a copy of your degree. Or, if

the source of your down payment is a gift or money borrowed from relatives, your lender

may request special documentation for these details.

While all the forms and paperwork involved in applying for a mortgage may seem

excessive, these are necessary steps for meeting various mortgage program

requirements and ensuring that lenders are extending safe credit to consumers.

Other Important Considerations

Points and rate optionsSome stated mortgage rates include points. A

point is one percent of the amount of the

mortgage. Lenders can charge borrowers a

percentage of the loan amount equal to the

number of points to cover the lender’s costs.

Sometimes borrowers pay higher points in

exchange for lower interest rates.

Changing your financial pictureNote that your financial picture cannot change

between the time you apply for a mortgage and

close on the property, even after you have been

approved. For example, don’t buy a new car,

purchase major appliances using credit, or

change jobs during this time. Your financial

position must be the same at closing as it was

when you were approved, or it could prompt

your lender to revoke their mortgage

commitment.

Homeowners insuranceThe financial institution providing your mortgage will require you to obtain homeowners

insurance before closing and provide proof of the policy. In some areas flood insurance

is also required. Allow plenty of lead time before closing to secure homeowners

insurance.

Cost and coverage can very. When evaluating which companies policy is right for you,

consider questions such as:

What is and is not covered?

How much will the insurance cost?

How much is the deductible?

Is the home in an area prone to hurricanes where wind insurance may be a separate

policy

Is the home in a flood zone where separate flood insurance is required?

Escrow AccountsYou will need to decide if you want to pay your property taxes and the homeowners

insurance policy on your won, or wrap them into your monthly mortgage payments. Most

lenders include a portion of the property tax from funds held in escrow. This assures

payment of property taxes and help buyers smooth these substantial expenses out over

12 months.

Email: Bendrealestateworks@gmail.com If you would like

to have a Preferred Lender assist you through the

mortgage process.

7 Prepare for ClosingMany important details must fall in place before you close on your home. Your agent will

help you stay on track. Some of the most important details include:

Complete a home inspection. Assuming this contingency was in your offer, schedule a

through inspection of the property with a qualified home inspector. Your agent can

assist you in identifying several inspectors to choose from. The inspector should

provide you with a written report detailing any flaws found in the home, including

information about the severity of his or her findings.

When major defects are identified, it will help determine which, if any, should be

corrected by seller.

What is a Major Defect: any defect that would have a negative effect on the long term

value of the home or the safety of it’s inhabitants if not replaced or corrected.

Often, it is best to get quotes for repairs and request dollar amount at closing. If the

seller declines, you will have the option of the return of your deposit monies in full, or

continue with the purchase.

If severe problems are found, your contingency clause should permit you to cancel the

contract without obligation. But also remember that no home is perfect and small

repairs and maintenance issues should not derail the transaction or require another

round of negotiations.

Home Inspections

Request Attorney Review. If specifies in your offer, ask your attorney to review your sales

contract and , if desired, schedule his or her participation in

your closing.

Finalize Your Mortgage. Make sure you have supplied you lender with all necessary

documents and that your financing is in place for closing day.

Get Ready to Move.Moving may be the biggest job you face in buying a home.

Review Step 9 to get a jump on these preparations.

Attend a Final Walk-through. A pre-closing walk-through is a final check to ensure that the home is in the

same condition it was during the inspection, and to make sure all contracted

items, such as appliances, are still in the home. The timing of the final walk-

through will very, depending on practices in your market.

Prepare to Pay Closing Costs.When you applied for your mortgage, you received a good-faith estimate of closing

costs. As closing approaches, determine exactly how much money you will be

expected to bring to closing and what forms of payment are acceptable.

Email: Bendrealestateworks@gmail.com to request a list

of licensed and recommended Home Inspectors.

Close EscrowWHAT IS A REAL ESTATE “CLOSING”?

A “closing” is where you will meet at the escrow company for the purposes of signing the final escrow instructions, any loan documents, estimate of funds needed to close escrow, as well as your approval in writing of all of the inspections, etc. that I will already have reviewed and explained to you in detail during the escrow period.There should be no surprises for you because before this meeting I will have received and reviewed, on your behalf, every document prior to your signing. If everything was not in order, I would not have scheduled this appointment and closing for you.If financing the property, your lender will require you to sign a document, usually apromissory note, as evidence that you are personally responsible for repaying the loan.You will also sign a mortgage or deed of trust on the property as security to the lenderfor the loan. The mortgage or deed of trust gives the lender the right to sell the propertyif you fail to make the payments.At closing, you will be required to pay all fees and closing costs in the form of“guaranteed funds”, such as a Cashier’s Check. Your agent or escrow officer will notifyyou of the exact amount at closing.

IN SOME CASES THE LENDER MAY REQUIRE AN IMPOUND

ACCOUNT…Depending on the amount of your down payment, the lender will sometimes be required to set up an impound account, which is a separate account you pay into when making your mortgage payment.They will accumulate, on your behalf, the funds necessary to pay your property taxes, insurance and, in some cases, other expenses related to the property. If this is a requirement by your lender, we will already be aware of all of the details long before we prepare to close escrow.

8

Earnest Money — At the time you make a written offer, you should be prepared

to make an “earnest money deposit” (the deposit that secures a buyer’s offer). It will

be made payable to the Title Company.

Escrow and Initial Title Check — Upon acceptance of the offer signed

by both parties, an escrow will be opened with a Local Title Company. They will begin

handling many of the details outlined in the Purchase Agreement. Plus, a preliminary

title report will be generated, which confirms that the seller is the legal owner of

record of the property, including all real estate taxes and special assessments.

Disclosures, Inspections, and Contingencies — The seller must

disclose any material facts about the property. Disclosure of material facts can include

any property defects or any lawsuits regarding claim to ownership on the property. We

will work with you to arrange and order all of the necessary inspections. We will

review and explain all inspections on the home. We will work to remove each

contingency only when you fully understand what each of them means to you.

Homeowner’s Insurance — It’s your responsibility to obtain homeowner’s

insurance. Lenders always require the buyer to have proof of homeowner’s insurance

secured before they approve your loan. Insurance policies vary widely, so shop around.

Our insurance partners can provide you with a free,

no-obligation quote.

What to Expect During Closing

Appraisal of Property — The lender will arrange for the property to be

appraised. The appraiser’s report will describe the physical characteristics of the

property, and comparable property values will be used to determine the value of the

property. There will probably be a thorough interior and exterior inspection.

Loan Approval — Once all of the necessary steps are completed and your loan

has been approved, the lender will notify the title company that they’ve approved your

loan request, and will send the loan documents to the title company so that the

documents can be signed at the closing appointment.

Cashier’s Check — In preparation for the closing appointment, you’ll need to

obtain a cashier’s check or wire transfer for the amount of money due upon closing. The

Title Company will provide you with the exact amount.

Pre Closing Appointment— Prior to closing the escrow, we will meet at the

title company where you will sign all of the necessary title and loan papers in

preparation to close escrow.

Final Steps — Once you “sign-off”, the transaction needs to be recorded by the

county and the formal change of possession must take place. We will arrange for the

transfer of the property keys and accessories. The “For Sale” sign and property lockbox

will also be removed by the seller’s agent.

What to Expect During Closing Cont.

The following is an overview of what is happening behind the scenes from the time you

contract to buy your property until the day it closes. All of these activities need to

coordinated with the right people and make sure the lines of communication are open

and working smoothly.

Earnest Money - Typically, the listing agent will deposit your earnest money in

an escrow (neutral) account. The disposition of your deposit will be the agreed upon

terms and conditions we outline in the “Deposits” paragraph of your Residential Real

Estate Purchase Agreement and Receipt for Deposit.

Document Review – It is important to review all relevant documents and

information, such as the Preliminary Title Report, Inspections, Deed Restriction, Grant

Deed and many more reports and documents. We will advise you of our findings and

make sure you understand each document and, in some cases, suggest you ask your

attorney to review them on your behalf as well. We will essentially make sure the “I’s”

are dotted and “T’s are crossed to avoid any last minute challenges.

WHILE YOU’RE WAITINGHERE IS WHAT IS GOING ON JUST FOR YOU

Mortgage Approval - There are two components of this process that will

require facilitation by the participating agents. The first is the appraisal. Your lender

will hire an approved appraiser who they consider to be a neutral third party. This

appraiser will visit the property and prepare a detailed report determining its fair

market value. The listing agent will provide access to the property, yet has no input or

influence into the final outcome. In the case of a condominium, there is often a

questionnaire to be completed by the Management Company or a trustee of the

condominium association. I will track this process so that there are no delays in

obtaining a timely mortgage approval. Your attorney will be mindful of the mortgage

commitment date as per the Purchase Agreement.

Title Exam - The Title Company will have their title examiner check to ensure that

the seller will be able to convey “a clear and marketable title” to the property as

stipulated in the Offer to Purchase. This becomes the basis by which the Title Company

is able to certify title, thereby making it possible for title insurance to be purchased.

Your lender will require that you purchase title insurance, which will be arranged for you

and appear as a closing cost on your settlement sheet (HUD1 Statement).

WHILE YOU’RE WAITING CONT.

9 MoveYou found your new home. The contract has been signed

and the closing date set. Now, it’s time to move. You

should, however, begin planning for moving day well in

advance.

Costs, Insurance, Packing, and Income TaxFirst-time and even repeat buyers are often surprised by the variety of expenses

associated with moving, including everything from packing materials and utility

connections to insurance for your valuables and the actual cost of the movers, or truck

rental. You can eliminate or at least reduce many of the surprises and hassles of moving

by investigating moving companies, estimating moving costs, and making a moving

checklist.

Email: Bendrealestateworks@gmail.com to request you

FREE Moving Checklist.

Start Packing EarlyOver time, many of us accumulate many things. So you might begin with the general

assessment of your possessions, disposing of clothes, furniture, and other things that

you no longer want or need. Simply put, the less you move, the less it costs. To reduce

some of the costs of moving, consider holding a garage sale or donating items to

charity.

10 Celebrate

Congratulations!

You have worked hard to achieve the dream of

homeownership. On behalf of the Bend Real Estate Works

Team at Exit Realty Bend, We believe every family should

feel confident when buying a home!

If you would like more information or help with any of the

topics discussed in this homebuyers guide or would like to

request any of the FREE resources offered, Please send

your request to: Bendrealestateworks@gmail.com

This tool kit is not meant for solicitation to home buyers currently working with or under contract with another agent. These materials are not intended as legal, accounting, tax, financial, or other professional advice. The reader should seek

professional advice with respect to specific situations.

FROM THE BEND REAL ESTATE WORKS TEAM OF EXIT

REALTY BEND WE HOPE YOU FOUND THIS INFORMATION

HELPFUL!

Marshal BrownRealtorCell: (541)808-7024

Fax: (866)624-6117

Text: Mbrown to 85377

Email: Marshalcbrown@gmail.com

Web: Exitrealtybend.com

Cierra JohnsonRealtor

Cell: (541)903-0261

Fax: (866)624-6117

Text: Cierra to 85377

Email: Cierrajohnson@gmail.com

Web: Exitrealtybend.com

PLEASE CONTACT US TO REQUEST ASSISTANCE OR

MORE INFORMATIUON ON ANY OF THE INFORMATION

PROVIDED IN THIS

HOME BUYER TOOL KIT.