https://nestbendrealestate.com/wp-content/uploads/2016/01/100-things-to-watch-out-for-in-a-real-estate-transaction.jpg 283 424 nestbend https://nestbendrealestate.com/wp-content/uploads/2018/05/NestBend-logo.png nestbend2017-10-23 11:46:532017-10-23 20:46:01100 Things to Watch for in a Real Estate Transaction
For your Bend, Oregon real estate (or nearly any city/state!) transaction to go smoothly and close escrow on time, each of the parties involved in the process must play their role. Here are 100 things to watch for in a real estate transaction and who is responsible for them: buyer/borrower, seller, REALTORS®, the lender, the property, escrow/title company,
Responsibilities of the Buyer/Borrower:
- Pay credit card on time to avoid damage to credit report.
- Tell the truth on the loan application.
- Find out about any additional debts before the loan application.
- Borrower must remain employed.
- Co-borrower must remain employed.
- Make sure that income verification is not lower than that what is stated on the loan application.
- If applicable, make sure that overtime income is allowed by the underwriter for qualifying.
- The borrower/co-borrower should not make any large purchase on credit before closing.
- Do their best to avoid divorce, injury, illness or any other financial setback during escrow.
- Have necessary bank statements available.
- If applicable, have divorce papers available.
- Must stay motivated throughout the process.
- If applicable, the gift donor must not change his/her mind.
- If applicable, make sure the bankruptcy petition or the discharge are located on time.
- Have necessary tax returns available.
- If applicable, obtain the rent verification.
- Be aware of any changes to the loan program with the higher rates, fees and points.
- Borrower should qualify for more than they intend to spend to qualify should interest rates increase.
- If applicable, have disclosure of child support.
- Ensure that mortgage payments don’t double that of previous housing payments.
- Should not have filed for bankruptcy in last 2 years.
- Borrower should not switch from a job with salary to a job with 100 percent commission income.
- Borrower should not switch to a job with a probation period.
- Borrower should not bring handwritten pay stubs.
- Buyer should confirm that the property is represented correctly.
- Borrower must have a steady employment history of two years.
- co-borrower must have a steady employment history of two years.
- Buyer should have some flexibility in his/her price range.
- Buyer should make sure that she/he does is not short of money at closing.
- Buyer must bring a cashier’s check to the title company for the closing costs
- Buyer must provide a cashier’s check to the title company for the down payment.
- If applicable, the Veterans DD214 form must be available.
- Buyer should properly account for any additional money which comes from loans, gifts, etc. in writing.
Responsibilities of the Seller:
- Find a new place to live.
- Stay motivated to sell the property (reasons sellers back out: reconciles marriage, job transfer is cancelled, etc.)
- Should not remove items from the property which the buyer believes are included.
- Allow the appraiser inside the home in a timely manner.
- Allow the inspectors inside the home in a timely manner.
- Clear up any liens while making sure he/she has enough cash to close.
- The seller must own 100 percent of the property unless disclosed previously.
- Should not leave town without assigning Power of Attorney.
- If applicable, must get the signature of partners or co-owners.
- Should not delay the move-out date.
- Should complete the agreed upon repairs.
- Make sure the property does not go into foreclosure during escrow.
- Must disclose property problems and defects according to applicable disclosure form.
- Should provide information about the home and the neighborhood.
Responsibilities of the REALTORS®(s):
- Manage timing for their client, the buyer/seller to complete their tasks during the transaction.
- Complete and deliver paperwork on time.
- Provide timely access to the property for appraisals.
- Provide timely access to the property for inspections.
- Have experience similar property transactions.
- Provide correct information to the other parties in the transaction.
- Should not take any unexpected time off during the transaction.
- Must ensure that he/she can be contacted easily.
- Do sufficient research on the property.
- Understand the buying ability of clients.
Responsibilities of the Lender(s):
- Properly prequalify the buyers.
- Communicate any changes to market rates,
- Communicate any changes to loan costs.
- Communicate any changes to points.
- Lender should ask for all the information needed.
- Timely submission of information should be ensured to avoid disqualification.
- Should avoid last minute 2nd appraisals.
- Should avoid asking for other documents at the last minute.
- Make sure every form and the entire file is stored securely.
- Forms should be timely produced whenever required.
- Fund the loan in time for the closing.
Responsibilities Related to The Property:
- Buyer and seller must agree on financial responsibility for needed repairs that come up during the inspection.
- If applicable, septic system must be in good working order.
- If applicable, well must be in good working order.
- Correct information should be given about the home size.
- Correct information should be given about the condition of the home.
- Homeowner should make sure that the home is insurable for his/her insurance.
- Property should be inspected before purchase to ensure that the home is structurally sound.
- No portion of the home or land should be on the property of a neighbor.
- It should be confirmed that the property was zoned correctly.
- Should the home be particularly unique, thorough research should be done to find comparable properties for appraisal.
Responsibilities of the Escrow/Title Company:
- Properly prepare paperwork.
- Keep track of paperwork.
- Track down relevant information from beneficiaries if applicable.
- Track down relevant information from insurance companied.
- Track down relevant information from lien holders.
- Track down relevant information from lenders.
- Notify the agents/lender of unreturned or unsigned documents.
- Get the necessary signatures from the principals before letting them leave the town.
- Coordinate well, so that many things can be simultaneously done.
- Pass critical information on quickly.
- Be thorough in finding title problems.
- Alert transaction parties quickly of problems that could delay closing.
Responsibilities of the Appraiser:
- Understand the market conditions properly to appropriately appraise the property.
- Complete the appraisal in a timely manner
- Deliver the appraisal in a timely manner.
- Should have some comparable sales available.
- Complete appraisal quickly should a lender requires a review appraisal.
- Avoid mistakes on appraisal.
- Confirm that the value is correct prior to submittal.
Responsibilities of the Inspectors:
- Be available to complete the inspection within the time frame required.
- Reasonably assess property without unnecessary alarm to buyer/seller.
- The pest inspectors should be available when required.
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