Bellevue now what mutual acceptance class 12.4.12

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Bellevue now what mutual acceptance class 12.4.12

  1. 1. What Happens Next:Mutual Acceptance toClosingMarco Vargas & KC BrantsRedfins Redmond-Kirkland Team
  2. 2. A Little Bit About Who We AreRedfin is a real estate brokerage that has helped over 20,000people buy or sell a home; 97% would refer us to a friend.● Customers, not commissions● Informed decisions● The right home for the right price No obligation Get back a portion of our commission
  3. 3. How Our Team Works BROKER Responsible for your success Writes your offer Handles negotiations YOU ASSOCIATE AGENT COORDINATOR Takes you to see homes Schedules tours See 50+ homes a week Prepares paperwork Works with escrowConsidering… Looking… Buying…
  4. 4. Benefits of a MLS Powered Site All the homes for sale: 30% more listings You see what the agent sees: 4x the data Real-time market data: photos, details of just-sold homes
  5. 5. To Buy or Not to Buy
  6. 6. Why You Should Buy a Home● You have a family and need room to grow● You expect to stay put for 5 or more years● You want a home that is difficult to rent● You’re handy & and ready to invest● You’ve saved up a down payment
  7. 7. Why You Shouldn’t Buy a Home You don’t have a good reason like family or schools You can’t afford the down payment You can rent for much less You plan on moving soon You’re worried about job security
  8. 8. Overview of a Purchase
  9. 9. Overview of a Purchase •Search homes online & tour •Get pre-approvedFinding •Find a dream home •Consult with agent, write offerYour Home •Submit offer to listing agent •Negotiations •Success!
  10. 10. Completing the Offer Wizard
  11. 11. Completing the Offer Wizard
  12. 12. Completing the Offer Wizard
  13. 13. Completing the Offer Wizard
  14. 14. Offer DocumentationTo submit an offer we need to include severaldocuments: Pre-approval Letter Proof of Down Payment Funds Copy of an Earnest Money Deposit Check Optional: FICO (credit) Scores Other forms: RELO Addendum; REO Addm. etc.
  15. 15. Forms Used
  16. 16. Most Commonly Used FormsForm 21(28) – Purchase and Sale AgreementForm 22A – Financing Contingency AddendumForm 22D – Optional Clauses AddendumForm 22J – Lead Based Paint Disclosure Pre-1978Form 22K – Utilities AddendumForm 22T – Title Contingency AddendumForm 35 – Inspection Contingency AddendumForm 35E – Escalation AddendumForm 35R – Inspection Response
  17. 17. Form 21: “PSA”
  18. 18. Form 21: “PSA”
  19. 19. Other FormsForm 17 – Seller’s Disclosure StatementLegal DescriptionRedfin BAAAgency DisclosureLead Based Paint Pamphlet if applicableBuilder AddendumRelocation Company AddendumsBank Owned Addendums – homepath.com
  20. 20. What happens when the documents are complete?Sign – typically via DocuSignSubmit – with your pre-approval letterWait for a responseCounter – if necessaryThen…….
  21. 21. Congratulations You Have Mutual Acceptance “NOW WHAT”
  22. 22. Deal Room Important milestone Your to do tracker list Your team of agents
  23. 23. Mutual Acceptance •Earnest money (within 3 days) •Inspection contingency (5-10 days) •Title review (5 days) •Financing contingency (25-30 days) •Waiting for underwriting approval
  24. 24. Mutual Acceptance When you submit an offer to a home seller, andboth parties agree on the price and terms of theoffer, you sign a purchase and sale agreement. Atthis point, you and the seller have reached mutualacceptance. Over the following 30-45 days, youllcomplete several tasks in order to complete thepurchase of the home, and the homes title will betransferred from the seller to you. Collectively, theperiod of time between mutual acceptance andclosing the deal is known as post-mutual.
  25. 25. Mutual Acceptance•Earnest money (within 3 days)•Inspection contingency (5-10 days)•Title review (5 days)•Financing contingency (25-30 days)•Waiting for underwriting approval
  26. 26. Earnest Money Earnest money, also known as a good faithdeposit, is the money paid by buyers after mutualacceptance -- the point when both the buyer andseller agree on the price and terms of a deal -- toprove that theyre serious about their offer.
  27. 27. Mutual Acceptance•Earnest money (within 3 days)•Inspection contingency (5-10 days)•Title review (5 days)•Financing contingency (25-30 days)•Waiting for underwriting approval
  28. 28. Form 35: Inspection
  29. 29. Form 35: Inspection
  30. 30. Form 35: Inspection
  31. 31. Inspection Contingency An inspection contingency gives you theright to get the home inspected and torequest repairs or credit to cover any neededfixes. The inspection usually happens 5 to 7business days after mutual acceptance. Ifyou and the seller are unable to come to anagreement about repair issues, you have theright to back out of the purchase and reclaimthe earnest money deposit
  32. 32. Form 35R: Inspection Response
  33. 33. Mutual Acceptance•Earnest money (within 3 days)•Inspection contingency (5-10 days)•Title Contingency (5 days)•Financing contingency (25-30 days)•Waiting for underwriting approval
  34. 34. Title Contingency A title contingency allows the buyer to verify thatthe homes title -- a legal document listing the historyof ownership of the home -- is clear of anyoutstanding debts or conflicting claims of ownership.The buyer does this by reviewing a title report.
  35. 35. Mutual Acceptance•Earnest money (within 3 days)•Inspection contingency (5-10 days)•Title Contingency (5 days)•Financing contingency (25-30 days)•Waiting for underwriting approval
  36. 36. Financing Addendum
  37. 37. Form 22A: Financing Addendum
  38. 38. Form 22A: Financing Addendum
  39. 39. Finance Contingency A financing contingency, also known as amortgage contingency, states that the buyer mustget approved for a loan before being able tocomplete the purchase of a home. This contingencyis an important form of protection for the buyer; inthe event that you cannot secure financing, you canback out of the home purchase and reclaim yourearnest money Any changes made to Financing after MutualAcceptance needs to be approved by seller or yourFinance Contingency will be waived.
  40. 40. Mutual Acceptance•Earnest money (within 3 days)•Inspection contingency (5-10 days)•Title Contingency (5 days)•Financing contingency (25-30 days)•Waiting for underwriting approval
  41. 41. Waiting for Underwriter Approval● Period of time where anything associated with thetransaction is reviewed by the lenders underwriter toauthorize documents to be released for funding. ► Such as appraisal results ► Lender Loan Stipulations ► Verification of Employment ► Final Credit Check.
  42. 42. Closing•Escrow signing appointment•Receive Redfin refund closing credit•Get keys and take possession!•Complete Redfin Survey
  43. 43. Questions?Business cards from Marco or KC.
  44. 44. Our next class! Mortgage Class December 6, 2012 6:00pm – 8:00pm Springhill Suites Bothell 3850 Monte Villa Pkwy Bothell, WA 98021http://www.redfin.com/buy-a-home/classes-and-events

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