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 5:30pm Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation 1-866-667-6724

Thank you for attending

We will begin in a moment

Class Scheduled to begin at 5:30pm

Homeownership Educator

Scott Schang

Branch Manager

Broadview Mortgage Corporation

1-866-667-6724

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

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

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”

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”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 approval - $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

The Contingencies

17 days for financing / Appraisal – Default

Lender is responsible for placing appraisal order

Appraisal is ordered on day of approval - $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

After the Offer – 30 Days to Own New Changes in Appraisal Guidelines Home Valuation Code of Conduct - May 1 st , 2009 Fannie Mae & Freddie Mac Loans only for now Appraisal must be ordered by third party person not directly involved in the transaction and whose compensation is not directly or indirectly tied in to the close of transaction FHA has not enforced a similar policy as of yet Lender (not broker or loan officer) is responsible for placing appraisal request

New Changes in Appraisal Guidelines

Home Valuation Code of Conduct - May 1 st , 2009

Fannie Mae & Freddie Mac Loans only for now

Appraisal must be ordered by third party person not directly involved in the transaction and whose compensation is not directly or indirectly tied in to the close of transaction

FHA has not enforced a similar policy as of yet

Lender (not broker or loan officer) is responsible for placing appraisal request

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

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

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

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

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 lenders will reduce sales price

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 lenders will reduce sales price

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

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

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

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

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 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”

Wrap up and Take Aways

Demystifying the process is a huge step toward being in control of the process

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”

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 refer you to a qualified Real Estate Agent that we have interviewed and worked with – Shares our values

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 refer you to a qualified Real Estate Agent that we have interviewed and worked with – Shares our values

Hiring an Agent – Finding Deals 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 power point presentation Secure on-line loan application Links to all the topics we discussed in class Dream Home Finder request Link to detailed information about the Tax Credits Link to information about the CAR Mortgage Protection Program A schedule of all upcoming classes

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 power point presentation

Secure on-line loan application

Links to all the topics we discussed in class

Dream Home Finder request

Link to detailed information about the Tax Credits

Link to information about the CAR Mortgage Protection Program

A schedule of all upcoming classes

Upcoming Homebuyer Classes A First Time Home buyer’s Complete Guide to Credit, Qualifying and Completing the Loan Application A Complete Guide to Buying Foreclosures and Short Sales A Complete Guide to Closing Costs and the GFE A Complete Guide to the CalPERS Home Loan Program Five 100% Financing Loans You Should Know About A Complete Guide to FHA Purchase Loans A Complete Guide to the CalSTRS 8017 A Guide to Hiring a Real Estate Agent and finding the best deals Check back often for upcoming classes

A First Time Home buyer’s Complete Guide to Credit, Qualifying and Completing the Loan Application

A Complete Guide to Buying Foreclosures and Short Sales

A Complete Guide to Closing Costs and the GFE

A Complete Guide to the CalPERS Home Loan Program

Five 100% Financing Loans You Should Know About

A Complete Guide to FHA Purchase Loans

A Complete Guide to the CalSTRS 8017

A Guide to Hiring a Real Estate Agent and finding the best deals

Check back often for upcoming classes

Thank You for Attending If you enjoyed this class – Tell a friend  Your input is Valuable Please complete 2 question survey when you log off For more information 1-866-667-6724 Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation

Your input is Valuable

Please complete 2 question survey when you log off

For more information

1-866-667-6724

Homeownership Educator

Scott Schang

Branch Manager

Broadview Mortgage Corporation