Seller's Handbook

Knowing ahead of time what is going to happen will make for an easier transaction.

One thing is for sure – if you purchase a home, there will be a lot of paperwork. Each piece of paper has a purpose and you should make sure you understand what you are signing.

You will start by filling out the application for your loan (the 1003 or Uniform Residential Loan Application). The Uniform Residential Loan Application is the standard document for residential mortgage financing used for FHA, VA and Conventional financing. There are four pages to this document dealing with your personal information, employment, assets, debts and declarations section. The declarations section asks specific questions about the your financial status, residency, obligations and credit history.

When you find the home you wish to purchase your Realtor® will complete the Purchase Contract. This contract can be many pages depending in what part of the country your new home is located. In addition to the Purchase Contract, there will be Disclosures. Sellers should disclose any problems with the property or noise in the neighborhood, etc. and most real estate companies have a stack of disclosures that you will also need to sign.

As your lender and the loan processor work through the tasks that must be completed (verifying your employment, checking your credit, having an Real Estate Appraiser write up the appraisal on the new home, etc.) your Realtor® will be working with you to make sure that your new home has the necessary inspections. You may be negotiating (through your Realtor®) for repairs to be completed by the seller that are discovered by a home inspector and/or termite/pest control company, etc. There will be paperwork to sign concerning these inspections and negations for repairs. Read them – ask questions about things you may not understand.

Before you have your appointment to sign all the final documents for the loan and the closing of the escrow, you can expect that your lender will call and say, “We need just one more piece of paper from you.” Remember, if you don’t produce the necessary paperwork, it can and will hold up the closing of your escrow. Bite the bullet and complete the task. You are almost there.

The appointment to sign all the final documents is very important. It can take an hour or more to get through everything. Make sure you understand what personal identification you and anyone else signing the documents needs to bring to the meeting.If you are to provide money in addition to the loan monies, clarify ahead of time how you are to transfer that money into escrow. Will you need to have a certified cashier’s check or make arrangements for your bank to wire funds into escrow?

Check with your financial advisor, CPA and/or tax attorney to decide how you are going to hold title before you go the meeting to sign the final documents. The escrow/title company people can not give you this legal advice.

Most of all realize that this event in your life is going to cause anxiety – change may be exciting for some of us, but this is one of the major changes and disruptions in our lives. Give yourself extra time and try not to take on anymore BIG tasksduring the move.

Remember to keep the communication open with your Realtor® and lender. It doesn’t seem so overwhelming if you understand what is going on.