Accepted Offers
Paying attention to details early on will save time and avoid the items that cause delays; extensions, addendum, and relationship management with the clients and all parties involved.
Below are the details of the lender submission process.
To help educate the home buyer and prepare them for a clean transaction, see below to learn more!
This is a critical step having been in conversation with the listing agent. We need all file contact information complete so that the transaction can move forward. This includes an identified listing agent, title company, listing ticket, email address on the listing ticket. If there is any piece missing, it can delay the transaction.
This is a critical step in double-checking all the signature pages; making sure it is legible, and all pages are in order is essential for the paperwork to be processed quickly. It’s also important to ensure the FHA Amendatory Clause is attached, all signatures required are signed, and the correct address is listed.
Addendums are vital as they will supersede the purchase agreement. We often see bank-owned property addendums come back with the purchase offer utterly different than the original agreement. Like the other portions of the contract, be sure that all parties involved have signed and the pages are in the correct order.
This is one of the most problematic items of concern which will cause delays in the loan process and enormous paper trails in loan underwriting. These earnest money deposits must come from the buyer’s account and own funds. If a gift was received, it’s important to remember that 3% of the purchase price must be from the borrower’s savings. Even if the gift has been added to the borrower’s account, that money will not count towards the deposit. A loan denial could result due to insufficient funds provided by the borrower.
Keeping a copy of the listing ticket helps us calculate a monthly payment and cash to help close clients. A listing ticket tells us the winter and summer taxes and well and septic information (do we need a water test). Providing us the listing ticket upfront ensure there won’t be any surprises or delays while processing the transaction. This step is crucial to the submission package and should not be forgotten.
Property Scrub Sheet
This is the most critical information clients provide to ensure no surprises moving forward. Discovering these items later can cause delays, switching loan programs and or down payments, monthly payments, or cash to close. As you have scheduled your inspection, we filter through this data to ensure the loan is set up correctly, cash to close has been verified, and your client knows everything before ordering the appraisal. This list can be downloaded to the right or viewed below.
Latest Summer and latest winter taxes.
Homesteaded or non-homesteaded. If non-homesteaded, is it on the winter or summer tax bill?
What would the homesteaded taxes be?
Any special assessments – Buyer will assume or will be paid by the seller.
Property type? Single-family, Site condo?
Attached condo? Condos are very difficult and the entire complex must be approved.
Seller concessions amount if any.
Association dues monthly or annually.
Only the names on the mortgage application are on the Purchase Agreement.
EMD comes from one named on the Purchase Agreement.
Seller pays for Title Owners Policy – Buyer pays for Title Owners Policy – This will affect cash to close
Seller pays transfer taxes or will the buyer be responsible (Bank-Owned homes the buyer will often pay)
Property flip (the home has transferred ownership in the last 12 months). Could require a 2nd appraisal.
City water or well water? It could require additional inspections or tests.
Foreclosure, short sale, vacant?
Waterfront or new construction? This will require a mortgage survey that must be ordered.