Embed Size (px)
DESCRIPTION
Oklahoma Buyer's Guide
Citation preview
i n o k l a h o m a
buying a home
Copyright © 2009 First American Title. All rights reserved. No part may be reproduced without prior written permission.
The information contained in this brochure is for general reference only. It is provided as a courtesy to friends and clients of First American Title.
t h i n k f i r s t a m e r i c a n .
think first.
133 NW 8th Street, Oklahoma City, OK 73102
Phone 405.236.2861 ▼ Fax 405.605.1998 ▼ www.okfirstam.com
Buying a home in OklahomaThe information in this guide will help you become more comfortable with the escrow and title process you are about to begin.
We hope to answer your questions in advance and provide you with step-by-step information that will clarify your part in this process. A glossary is included at the end of this guide for any terms you may not be familiar with.
The information contained in this brochure is for general reference only. It is provided as a courtesy to friends and clients of First American Title.
We welcome any questions you may still have after reading this information. Please feel free to call First American Title or your real estate agent. We look forward to serving you.
of contentstable
01
buying a home
0 2 . QUICK REFERENCE PAGE
0 3 . FAsT FACTs FoR bUyERs
0 4 . L I F E o F A N E s C R o W
0 5 . bENEFITs FRoM A PRoFEssIoNAL REALToR®
0 6 . obTAINING A NEW LoAN
WhAT yoU NEEd FoR ThE LoAN APPLICATIoN
0 7 . WhAT To AvoId dURING ThE LoAN PRoCEss
TyPEs oF LoANs
0 8 . WAys To TAKE TITLE
0 9 . RENT vs. bUy
1 0 . MoRTGAGE PAyMENT ChARTs
1 1 . sELECTING A hoME
1 2 . EsCRoW QUEsTIoNs ANd ANsWERs
1 3 . TITLE sEARCh
1 4 . ThE EsCRoW PRoCEss
1 5 . UNdERsTANdING TITLE INsURANCE
1 6 . CoMPARE oUR EAGLE PoLICy
1 7 . Who PAys CLosING CosTs?
1 8 . AddITIoNAL TITLE ThREATs
1 9 - 2 0 . TERMs yoU shoULd KNoW
2 1 . PLANNING yoUR MovE
2 2 . yoUR NoTEs
Ca
bl
ee
le
Ct
riC
CO
mm
uN
iCa
tiO
NS
Ot
he
rW
ate
r/S
eW
er
/ga
rb
ag
eg
aS
quick referenceiN
Su
ra
NC
e Agent _________________________________________________________ Policy # _______________________________
Phone (_______) ________________________________________________
New Agent _____________________________________________________ Policy # _______________________________
Phone (_______) ________________________________________________
Name ____________________________________________________ Phone (_______) ________________________________________
Assistant __________________________________________________ Cell (_______) ________________________________________
Company _________________________________________________ Pager (_______) ________________________________________
Address __________________________________________________ Fax (_______) ________________________________________
City/state/Zip ______________________________________________ Email _________________________________________________
Escrow officer _____________________________________________ Email _________________________________________________
Escrow Assistant ___________________________________________ Email _________________________________________________
Address __________________________________________________ Phone (_______) ________________________________________
City/state/Zip ______________________________________________ Fax (_______) ________________________________________eS
Cr
OW
re
alt
Or
®
Oklahoma Natural Gas 405-551-4000 www.ong.com
New gas company ________________________________________________________________________________________
Cox 405-600-8282 www.cox.com/okc
New cable company _______________________________________________________________________________________
OG&E 405-272-9741 www.oge.com • Edmond Electric 359-4541 www.edmondok.com
OK Electric Coop 321-2024 www.okcoop.org • Cimarron Electric Coop 375-4121 www.comarronelectric.com
New electric company _____________________________________________________________________________________
AT&T 800-403-3302 www.att.com • Birch 866-347-3843 www.birch.com
Cox 405-604-3663 www.cox.com • TDS Telecom 405-390-2291 www.tdstelecom.com
Long distance carrier, if different ________________________________________________
New phone company ______________________________________________________________________________________
your new phone (_______) ________________________ New fax (_______) ________________________________________
Cell phone _______________________________________________________________________________________________
Internet service ___________________________________________________________________________________________
New water company ______________________________________________________________________________________
Oklahoma City Water 297-2833
Oklahoma City Garbage 297-01950
Bethany 789-2146
Del City 671-2826
Edmond 359-4541
Midwest City 739-1252
Midwest City 739-1254
Mustang 376-4474
Nichols Hills 843-6673
Norman Garbage 329-1023
Norman Water 366-5320
Piedmont Garbage 800-211-3717
Piedmont Water 373-2000
Village 751-4933
Voter Registration okla. County Election board (405) 713-1515 www.oklahomacounty.org
Auto Tag and Registration oklahoma Tax Commission (405) 521-3221 www.oktax.state.ok.us
Drivers License okla. dept. of Public safety (405) 425-2424 www.dps.state.ok.us/dls
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Your EsCRoW NUMbER _______________________________________
Your NEW AddREss __________________________________
CITy/sTATE/ZIP ______________________________
stop dATE
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
start dATE
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
___ /___ /___
02
excerpt from
preamble to the realtor’s® code of ethics:
The term Realtor® has come to connote
competency, fairness, and high integrity
resulting from adherence
to a lofty ideal of moral conduct
in business relations.
No inducement of profit and no instruction from clients
ever can justify departure from this ideal.
In the interpretation of this obligation,
Realtors® can take no safer guide
than that which has been handed down
through the centuries,
embodied in the Golden Rule:
“Whatsoever ye would that others
should do to you, do ye even so to them.”
> realtor.® A Realtor® is a licensed real estate agent and a member
of the National Association of Realtors,® a real estate
trade association.
Realtors® also belong to their state and local boards of
Realtors.® They have a wealth of resources at their disposal,
including the Multiple Listing service and continuing educa-
tion. All association members agree to abide by a 17-article
Code of Ethics and strive for the height of professionalism.
fast facts> F o R b u Y e r s
> real estate agent. A real estate agent is licensed by the state to represent
parties in the transfer of property. Every Realtor® is a
real estate agent, but not every real estate agent is a
professional Realtor.®
> listing agent. A listing agent forms a legal relationship with the homeowner
to sell the property, and places the property in the Multiple
Listing service.
> multiple listing service (mls). The MLs is a database of properties listed for sale by
Realtors® who are members of the local board of Realtors.®
Information on an MLs property is available to thousands
of Realtors.®
> buYer’s agent. A buyer’s agent or buyer broker is an agent hired by the
buyer. Generally, the buyer broker is paid from the commis-
sion fee agreed to by the seller.
> commitment is a two-waY street. your Realtor® will make a commitment to spend valuable
hours finding the right home for you: researching listings,
previewing properties, visiting homes with you, and negoti-
ating your contract. honor that commitment by staying with
the Realtor® you’ve selected until you purchase your home.
be sure your Realtor® accompanies you on your first visit
to all new homes and open houses, too.
The Realtor® becomes familiar with your family’s needs.
you develop better rapport and communication when working towards your goal with only one Realtor.®
The Realtor® is more committed to you because you return that commitment.
you avoid any uncomfortable situation arising from agent conflict.
the advantagesof working with only one realtor® include:
4
3
2
1
03
04
FiNal DOCumeNtS
SeNt tO
iNtereSteD PartieS
BUYER
reCeiVeS KeYS FrOm realtOr®
DOCumeNtS reCOrDeD
aND eSCrOW ClOSeD
First American DiSburSeS FuNDS
First American tO ObtaiN FuNDiNg
authOriZatiON FrOm leNDer
BUYER
briNgS iN CertiFieD FuNDS
at ClOSiNg
ClOSiNg DOCumeNtS
COmPileD bY
First American
lOaN DOCumeNtS
PrePareD bY leNDer
& SeNt tO eSCrOW
BUYER
reCeiVeS FiNal lOaN
aPPrOVal FrOm leNDer
BUYER
aDViSeS First American
OF hOme iNSuraNCe COmPaNY
title COmmitmeNt & SurVeY
COmPleteD & SeNt tO
aPPliCable PartieS
iNSPeCtiON rePOrtS SeNt
tO aPPliCable PartieS & reVieWeD.
NOtiFiCatiON SeNt
eSCrOW OPeNeD at
First American & title COmmitmeNt OrDereD
aPPraiSal
OrDereD & COmPleteD bY leNDer
aPPOiNtmeNtS Set:
BUYER & SELLER
BUYER & SELLER
SigN DOCumeNtS
leNDer “FuNDS lOaN”
(SeNDS FuNDS tO eSCrOW)
VariOuS iNSPeCtiONS
OrDereD bY realtOr®
BUYER
VieWS hOmeS With realtOr®
SELLER
SeleCtS a realtOr®
SELLER
PrePareS hOuSe FOr
ShOWiNg & SelliNg
SELLER
reVieWS & aCCePtS CONtraCt
FrOm BUYER
BUYER
SeleCtS hOme aND
SubmitS CONtraCt
the life of an escrow
BUYER
Pre-aPPrOVeD bY leNDer
iF NeW lOaN NeeDeD
BUYER
SeleCtS a realtOr®
05
benefitsF R O M A P R O F E S S i O N A L R E A L T O R ®
i T W O N ’ T C O S T y O u A P E N N y !
The Realtor® who helps you buy a home is traditionally paid by the seller.
M A N y M O R E H O M E C H O i C E S .
your Realtor® has thousands of homes to choose from through the Multiple Listing service (MLs), so you’re more likely to find the home that’s just right for you and find it quicker. In fact, a majority of the homes for sale are listed by Realtors® and aren’t available to you unless you are working with a Realtor.®
A N u M B E R O F T R A N S A C T i O N S “ F A L L O u T. ”
Unfortunately, it’s true. some transactions fall apart before closing.
An experienced Realtor® may be able to resolve problems and see your transaction through to a successful closing.
K N O W L E D G E O F N E W H O M E S u B D i V i S i O N S .
New home subdivisions will welcome you and your Realtor.® If you’re interested in buying a new home, take your agent with you on your first visit to each subdivision. your professional Realtor® is an important source of information who can supply background on the builder, nearby subdivisions, and the local community.
i T ’ S A M A j O R i N V E S T M E N T.
you use a professional for your legal, financial and health needs. Why gamble on what may be your biggest investment without a professional at your side?
H E L P W i T H F S B O ’ S .
If you consider a “For sale by owner,” take your Realtor® along to help negotiate the contract. The owner may not only agree to your terms, but also agree to pay the agent’s commission.
L E S S L i A B i L i T y.
you will have more protection from legal and financial liability, especially as real estate transactions become more complicated.
T H E PA P E R W O R K .
your experienced Realtor® will negotiate and prepare the purchase contract for you and assist you throughout the escrow process.
Congratulations on your decision to buy a home! it’s a challenging project, and there are many ways a professional
can help. here are some of the many ways you may benefit
from working with a realtor®:
What You May Need For The Loan Application
be prepared to provide some or all of these
items to your loan officer.
Addresses of residences for last two years•
social security Number
•
driver’s License or other valid Id•
Names and addresses of employers
for last two years•
Two recent pay stubs showing
year-to-date earnings•
Federal tax returns for last two years•
W-2’s for last two years
•
Last two months statements for all
checking and savings accounts
•
Loans: Names, addresses, account numbers,
and payment amounts on all loans
•
Real estate loans: Names, addresses,
account numbers, and payment amounts
on all loans for other real estate you own
•
Credit cards: Names, addresses, account
numbers, and payment amounts on all
credit cards
•
Addresses and values of other real estate owned
•
value of personal property. your best estimate
of the value of all your personal property (autos,
boats, furniture, jewelry, television, stereo,
computer, other electronics, etc.)
•
For a vA loan, Certificate of Eligibility or dd214s
•
divorce decree if applicable
•
Funds to pay upfront for the credit report
when and where to applY for a loan? There are many sources for home loans including banks, credit unions,
mortgage companies, and mortgage brokers. your Realtor® may give
you several names of lenders who have proven reliable in their previous
transactions Apply for your loan as soon as possible. In fact, it’s probably
a good idea to know what you can afford before you begin looking for
your new home. It can give you more bargaining power when negotiating
with a seller, especially in today’s market. A lender can prequalify you for
a certain price range and help you avoid disappointment later.
Your lender will mail out verification requests and
order an appraisal on the property you are buying. If your lender asks
for additional items, please comply promptly with those requests
to avoid delaying loan approval.
what is hazard (or fire) insurance? hazard insurance covers the dwelling itself and is required by the lender to
protect their “risk” in your home. your lender or Realtor® will explain the
necessary hazard insurance coverage to you. If you are buying a condo-
minium, a master policy already exists which includes your unit—but it
does not cover your personal belongings.
contact Your insurance agent earlY in the process, because this coverage must be provided so the lender can release loan
funds to First American. hazard insurance is one of the items frequently
postponed until the last minute, and this can result in delaying the
closing for a day or more. order your insurance as soon as your loan
is approved; then furnish your escrow officer with the agent’s name and
phone number.
When you talk with your insurance agent, be sure to ask about additional
coverage in a homeowner’s policy to insure your personal belongings and
to protect against liability for such events as injuries to visitors.
what happens after loan approval? After loan approval and just prior to your planned closing date, the lender
will send loan documents to First American Title, and your escrow officer
will prepare an estimated settlement statement. This statement indicates
what funds go where, and at this time your escrow officer can tell you how
much money you need to bring to the closing appointment. Be aware
that this amount may be higher or lower than previously estimated
due to changes in such items as prepaid interest, prorated fees, courier
fees, and impound accounts.
a new loanobtaining
06
types of loansADjuSTABLE RATE LOAN. Adjustable or variable rate refers to the fluctuating interest rate you’ll pay over the life of the loan. The rate is adjusted periodically to coincide with changes in the index on which the rate is based. The minimum and maximum amounts of adjustment, as well as the frequency of adjustment are specified in the loan terms. An adjustable rate mortage may allow you to qualify for a higher loan amount but maximums, caps and time frames should be considered before deciding on this type of loan.
ASSuMABLE LOAN. A true assumable loan is rare today! This loan used to enable a buyer to pay the seller for the equity in the home
and take over the payments without meeting any requirements. Assumables these days generally require standard income, credit and funds verification by the lender before the loan can be transferred to the buyer.
BALLOON PAyMENT LOAN. A balloon loan is amortized over a long period but the balance is due and payable much sooner, such as amortized over 30 years but due in five years. The loan also may be extendable or it may roll into a different type. This could be an option if you expect to refinance before the loan is due or you plan to sell before that date. discuss this option carefully with your Loan officer before accepting this type of loan.
Buy-DOWN LOAN. If you have cash to spare, you can pay a portion of the interest upfront to reduce your monthly payments.
COMMuNiTy HOMEBuyER’S PROGRAM. This program is designed to assist first-time buyers by offering a fixed rate and a low downpayment, such as 3 to 5% down. The program doesn’t require cash reserves, and qualifying ratios are more lenient; however, the buyer’s income must fall within a certain range and a training course may be necessary if required by the program. Ask your Loan officer if this program is available in your community and whether or not you might qualify.
CONVENTiONAL LOAN. This simply describes a loan that is not obtained under any government-insured program, secured by investors. It could be any type: fixed rate, adjustable, balloon, etc.
FHA LOAN. This program is beneficial for buyers who don’t have large downpayments. The loan is insured by the Federal housing Administration under housing and Urban development (hUd) and offers easier qualifying with less cash needed upfront but the condition of the property is strictly regulated. The seller will pay a portion of the closing costs that would typically be paid by the buyer in a conventional loan program.
FixED RATE LOAN. This loan has one interest rate that is constant throughout the loan.
GRADuATED PAyMENTS. This is a mortgage that has lower payments in the beginning that increase a pre-determined amount (not based on current rate fluctuations as with an adjustable) usually on an annual schedule for a specific number of years.
NO-quALiFyiNG. A no-qualifying loan may be an option for those who can afford a larger downpayment, generally 25% to 30% or more. since the risk for the lender is virtually eliminated, the borrower doesn’t have to meet normal lender requirements such as proof of income.
VA LOAN. People who have served in the U.s. armed forces can apply for a vA loan which covers up to 100% of the purchase price and requires little or no downpayment. The seller pays much of the closing costs but those fees are added to the sales price of the home.
Do Not ChaNgE joBS. A job change may result in your
loan being denied, particularly if you are taking a lower
paying position or moving into a different field. don’t think
you’re safe because you’ve received approval earlier in the
process, as the lender may call your employer to re-verify
your employment just prior to funding the loan.
avoiD SwitChiNg BaNkS oR moviNg YoUR moNEY to aNothER iNStitUtioN.
After the lender has verified your funds at one or more institutions, the money should
remain there until needed for the purchase.
DoN’t paY off ExiStiNg aCCoUNtS UNLESS thE LENDER REqUEStS it.
If your Loan officer advises you to pay off certain bills in order to quality for the
loan, follow that advice. otherwise, leave your accounts as they are until your
escrow closes.
DoN’t makE aNY LaRgE pURChaSES. A major
purchase that requires a withdrawal from your verified
funds or increases your debt can result in your not
qualifying for the loan. A lender may check your
credit or re-verify funds at the last minute, so avoid
purchases that could impact your loan approval.
D u r i N g t h e l O a N P r O C e S S What tO avoiD
07
08
WAys To TAKE TITLE iN OKLAHOMA
Joint tenancY
information is furnished by First american title for informational purposes only. Contact an attorney for advice regarding a specific manner of holding title.
PartieS
OWNerShiP
title
any number of persons or entities
(can be husband and wife).
any number of persons or entities
(can be husband and wife).
CONVeYaNCe
PurChaSerS’ StatuS
SuCCeSSOrS’ StatuS
Death
tenancY
in common
PreSumPtiON
CreDitOrS’ rightS
Ownership can be divided into
any number of interests, equal or unequal.Ownership must be equal.
each co-owner has separate
legal title to their undivided interest.there is only one title to the whole property.
each co-owner’s interest may
be separately conveyed.
Conveyance by one co-owner without the others breaks
the joint tenancy as to the party who conveyed.
Purchasers become tenants in
common with other co-owners.
Purchasers from one co-owner will
become a tenant in common.
upon a co-owner’s death, their interest passes
by will or if no will, state intestacy to their devisees
or heirs. No survivorship right.
On co-owner’s death their interest automatically
transfers to the surviving joint tenant(s), outside
of any probate proceedings.
Devisees or heirs become tenants in common. last survivor(s) owns property in whole.
a co-owner’s interest may be sold on execution sale
to satisfy creditors subject to Oklahoma homestead
laws. Creditors become tenants in common.
a co-owner’s interest may be sold on execution sale to
satisfy creditors subject to Oklahoma homestead laws. Joint
tenancy is broken. Creditors become tenants in common.
grant to multiple parties creates a
tenancy in common presumption.
must be expressly stated, that parties are to
be joint tenants with full right of survivorship,
and not as tenants in common.
Ever thought how much you pay in rent over an extended period of time? Probably a lot more than you realize. The amount you spend for rent each month could be applied to a mortgage, not only building equity in your own property, but—in most cases—substantially reducing the Federal and state income taxes you pay each year. And what happens to your rent money? It’s gone! There’s no interest, no equity, no return.
Interest rates are still low, and you may be surprised at what you can afford. To determine your home-buying ability, call your real estate agent or lender. The consultation is free—no strings attached—so make the call today!
rentvs.buyWhy PAy RENT WhEN yoU CoULd bUILd EQUITy IN A hoME.
monthly rentalpayment after 1 year after 3 years after 5 years after 10 years after 15 years return
$ 400 4,800 14,400 24,000 48,000 72,000 $ 0
$ 500 6,000 18,000 30,000 60,000 90,000 $ 0
$ 600 7,200 21,600 36,000 72,000 108,000 $ 0
$ 700 8,400 25,200 42,000 84,000 126,000 $ 0
$ 800 9,600 28,800 48,000 96,000 144,000 $ 0
$ 900 10,800 32,400 54,000 108,000 162,000 $ 0
$ 1,000 12,000 36,000 60,000 120,000 180,000 $ 0
$ 1,100 13,200 39,600 66,000 132,000 198,000 $ 0
$ 1,200 14,400 43,200 72,000 144,000 216,000 $ 0
$ 1,300 15,600 46,800 78,000 156,000 234,000 $ 0
$ 1,400 16,800 50,400 84,000 168,000 252,000 $ 0
$ 1,500 18,000 54,000 90,000 180,000 270,000 $ 0
$ 1,750 21,000 63,000 105,000 210,000 315,000 $ 0
$ 2,000 24,000 72,000 120,000 240,000 360,000 $ 0
$ 2,500 30,000 90,000 150,000 300,000 450,000 $ 0
rent : your “Investment” anD return ][
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
NOTES
09
429 454 480 506 532 559 587 615 644
483 511 540 569 599 629 660 692 724
537 568 600 632 665 699 734 769 805
644 681 729 758 798 839 881 923 966
752 795 839 885 931 978 1027 1076 1126
859 908 959 1011 1064 1118 1174 1230 1287
966 1022 1079 1138 1198 1258 1321 1384 1448
1074 1136 1199 1264 1331 1398 1468 1538 1609
1181 1249 1319 1391 1464 1538 1614 1692 1770
1288 1363 1439 1517 1597 1678 1761 1845 1931
1396 1476 1559 1643 1730 1818 1908 1999 2092
1503 1590 1679 1770 1863 1958 2055 2153 2253
1610 1703 1799 1896 1996 2098 2201 2307 2414
2147 2271 2398 2528 2661 2797 2935 3076 3218
2684 2839 2998 3160 3327 3496 3669 3845 4023
3221 3407 3597 3792 3992 4195 4403 4613 4828
3758 3975 4197 4424 4657 4895 5136 5382 5632
Interest rate
THiS FORMuLA iS ONLy A GuiDE AND NOT TO BE CONSTRuED AS ACTuAL LENDiNG CALCuLATiONS. Contact your loan officer to determine more accurately what price range you should consider. Lenders abide by certain ratios when calculating the loan amount their customers can qualify for and the ratios vary by lender and loan program. Many use 28% of your gross monthly income as the maximum allowed for your mortgage payment (principal/interest/taxes/insurance or PITI); for your total monthly debt, the ratio is 36%. Total monthly expenses means PITI plus long-term debt (such as auto loans) and revolving/credit-card debt. do not include other expenses such as groceries, utilities, clothing, tuition, etc., to calculate this ratio.
how Much
homE You can AFFORD?
mortgage paYment principal & interest 30-Year loan
5% 5.5% 6% 6.5% 7% 7.5% 8% 8.5% 9%
$80,000
$90,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
$240,000
$260,000
$280,000
$300,000
$400,000
$500,000
$600,000
$700,000
LOanaMOUnt
MoNThLy ALLoWAbLE ToTAL dEbT (c) ________________
MINUs MoNThLy dEbT – (a) ________________
= MoNThLy ALLoWAbLE PITI (d) ________________
LEss 20% FoR TAxEs & INsURANCE) x .80
= ALLoWAbLE PRINCIPAL/INTEREsT oNLy (e) ________________
GRoss MoNThLy INCoME (b) ________________
x .28
= MoNThLy ALLoWAbLE PITI (f) ________________
(LEss 20% FoR TAxEs & INsURANCE) x .80
= ALLoWAbLE PRINCIPAL/INTEREsT oNLy (g) ________________
PAyMENT: ENTER LEssER oF (e) oR (g) (h) ________________
LoAN AMoUNT ________________
FoR 20% doWN ÷ .80
= hoME PRICE ________________
LoAN AMoUNT ________________
FoR 10% doWN ÷ .90
= hoME PRICE ________________
UsING ChART AbovE, FINd CURRENT INTEREsT RATE. LoCATE PAyMENT AMoUNT IN ThAT CoLUMN CLosE To yoUR
PRINCIPAL ANd INTEREsT (h). FINd LoAN AMoUNT To ThE
LEFT ANd ENTER hERE.
MoNThLy PAyMENTs
oN ACCoUNTs, AUTo,
CREdIT CARd, LoANs
+ ________________
+ ________________
+ ________________
+ ________________
+ ________________
= ToTAL MoNThLy ________________
dEbT (a)
GRoss MoNThLy
INCoME bEFoRE
TAxEs (b): ________________
x .36
= ALLoWAbLE ________________
ToTAL MoNThLy
dEbT (c)
10
AHOMEs e l e c t i n g
$ $ $ $ $
/ / / / /
The following home comparison chart is designed to help you remember the homes you visit and what you liked best and least about each one. Rate features or make notes that will help you determine what pleased or displeased you.
Remembering each home would appear easy, but it can quickly become confusing. Which home was near the school? Which one had the great pool? did it have a family room? And how many bathrooms? In the “something Memorable” category, note something you think is unusual and memorable about each home, such as a stained glass window, fruit trees, a child’s playhouse. This will make it easier for you to recall the property later and refer to a specific address. And, last but not least, maybe the most important question, does this house feel like home?
Good luck with your search, and enjoy your house hunting adventure!
home 1 home 2 home 3 home 4 home 5chart h O m e C O m Pa r i S O N
aDDreSS
aSKiNg PriCe
NO. beDrOOmS/bathS
Square FOOtage
FirSt imPreSSiON
lOCatiON
NeighbOrhOOD
aPPealiNg StYle
liViNg rOOm
DiNiNg rOOm
great rOOm
KitCheN
FamilY rOOm
bathrOOm
maSter beDrOOm
maSter bath
beDrOOmS
FlOOr PlaN
PatiO
POOl
laNDSCaPiNg
garage Or CarPOrt
SOmethiNg memOrable
DOeS thiS Feel liKe hOme?
11
12
EsCRoW Questions & Answers
As soon as the buyer and seller execute the purchase agreement, the real estate agent(s) will open escrow. At that time, the buyer deposits his “Earnest Money” into the real estate broker’s trust account.
how is escrow opened?
The buyer must inform the escrow officer and new lender of the manner in which the buyer will hold title to their new house so that all documents can be prepared correctly. The manner in which the buyer holds title can have tax and legal consequences. We suggest you consult your attorney or tax advisor to assist you in your decision.
What information do the buyer and seller have to provide?
The lender will begin the qualification process including verification of information submitted on the application, a credit report, and appraisal of the value of the property.
The lender will require that the borrower obtain hazard/fire insurance and flood insurance, if the property is in a specific type of flood hazard zone. It is important that the borrower contact the Escrow officer as soon as possible with the name and telephone number of the insurance agent they have has selected.
It is also a requirement of the lender that the borrower furnish a policy of title insurance, which protects their security interest in the property. The Escrow officer will order this title policy as part of the escrow process.
once the loan is approved, the lender prepares the loan documents and forwards them to the Escrow officer who will contact the buyer for an appointment to close. The Escrow office will prepare an estimated settlement statement and tell the buyer the balance of the down payment and closing costs needed to close the escrow.
What happens after the borrower submits the loan application?
- Identification in the form of a valid driver’s license or oklahoma I.d. card, or current valid passport. Identification is required so the signing party’s identity can be verified by the notary public. Lenders may also have additional identifica-tion requirements.
- A cashiers check for the balance of funds needed to close the escrow, made payable to First American Title. A wire transfer of funds directly to the escrow trust account can also be arranged and is also the preferred method of providing “good funds”.
What do the parties need to bring with them when they come to the title company to sign?
The escrow officer will prepare the final hUd-1 settlement statement, which is detailed accounting of all receipts and disbursements made through the escrow. Each party will review and approve the hUd-1 settlement statement and execute all documents for the transfer of the property.
When all the conditions of the lender and those contained in the escrow instructions have been satisfied, the lender will forward the loan funds to the escrow trust account. The funds in the escrow are disbursed to the entitled parties and escrow is “closed”. The escrow officer will arrange for the documents to be recorded.
When is “close of escrow”?
13
> right after escrow is opened, the escrow
officer orders a title search to be conducted to trace the chain
of title back through every available record. This title search
will determine whether the person representing himself as
the current owner actually has legal ownership and hence
the right to sell the property at all. The search will also reveal
what, if any, defects and encumbrances exist on the title. Just
as a life insurance company will not insure a person without a
thorough physical examination, a title insurance company will
not issue a policy of title insurance without doing a thorough
title search.
The state of oklahoma requires an Abstract of Title, or
“abstract” for short, which reflects the various documents in
the chain of title without giving any determination as to the
title’s condition.
title searchw h at h a p p e n s r i g h t a f t e r
e s c r o w i s o p e n e d ?
> in order to trace a propertY’s chain of title, an abstractor searches the records of the county
recorder, county treasurer, and other government agencies to
locate any and all documents which might affect the title to a
given property. only a duly bonded and licensed abstractor
who holds a “Certificate of Authority” may provide an abstract.
The abstract is then “certified” and delivered to an attorney
who is licensed to practice law in oklahoma and approved by
the title insurance company.
The attorney will review the abstract and provide his “opinion
of title”. based upon the abstract and attorney’s opinion, the
title company will issue a “Commitment” for title insurance to
the buyer and the lender.
h o w i s a t i t l e s e a r c h p e r f o r m e d ?
The exact description of the property.
The estate or interest in the property.
The vesting of the estate or interest.
The exceptions (liens, encumbrances and defects) affecting the particular vested interest.
The requirement that must be met by the seller in order to convey clear and marketable title under oklahoma law.
The results of this search are complied into a Commitment for Title Insurance. It reflects the conditions under which a title company is
willing to issue a policy of title insurance.
In the searchthe title examiner has five primary
determinations to make:
4
3
2
1
5
• caution
because of the length of time it takes for us to
receive notice from the banks on NsF and returned
items—regardless of the information shown here—
when disbursing funds from escrow based on a
deposit of a personal check, if 10 days has not
elapsed since the funds were deposited, telephone
verification from the customer’s bank that the check
has paid is required. Money orders: be extremely
cautious when receiving money orders as they are
known to be easily altered.
• “on-us” (first american title) checks
Next-day availability is dependent on the check
being drawn against the same bank or branch as
our own depository bank, and both are located
in the same state or check processing region.
disbursement availability will be dependent upon
County administration, escrow administration or
legal department discretion.
• local checks (processing region)
A check is considered “Local” when it is drawn
against a bank located in the same processing
region as our depository bank. In Arizona, any AbA
number beginning with a 12 (i.e., 1210, 1211) or 32
(i.e., 3221, 3222) is in our processing region.
14
the eSCrOW & title iNSuraNCe Process
Basic steps of an escrow
as the escrow agent, first american title impartially completes the following duties:
• serves as a neutral third party and liaison among all parties involved.
• Requests a Commitment for Title Insurance to determine the status of the title to the property.
• Requests a payoff demand from lenders when the seller is paying off debts.
• Receives demands, termite and certain other inspections.
• verifies terms with buyers’ and sellers’ real estate professionals.
• Receives buyers’ loan documents and homeowners insurance.
• Prepares most remaining documents and homeowners insurance.
• Pro-rates taxes related to the property as required by the contract.
• Receives closing instructions, documents, buyer’s funds and reviews file to determine
that all conditions have been met.
• Receives funds from buyer and verifies any checks deposited to escrow account.
• Requests loan funds from buyers lender.
• Records the deed and any other documents.
• Prepares hUd-1 settlement statement.
• disburses funds as authorized by the homeowners, including charges for title insurance, recording fees, real estate
commissions and loan payoffs.
• Causes the title insurance policy to be issued for buyer and lender if a lender has been used.
what is an escrow? An escrow is a depository for all monies, instructions and documents necessary for the purchase of your home.
An escrow company is a neutral third party that holds legal documents and funds and distributes them according to the buyer and seller instructions found in your contract and lenders instructions.
In addition, the escrow company orders a commitment for title insurance. A commitment includes the legal description of the land and the ownership interest of the property based on a search of public records on a city, county, state and federal level. This commitment is also a reminder to issue a title insurance policy based on the exceptions set forth in the report and satis-faction of requirements to convey a clear and marketable title.
A title insurance policy protects a real estate owner or lender against any loss or damage they might experience because of claims of ownership, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items speci-fied in the actual policy. different levels of coverage are available and should be discussed with your escrow office or real estate agent. once a title policy is issued, if for some reason any claim which is covered under your policy is ever filed against your property, First American will pay the legal fees involved in defense of your rights, as well as any covered loss arising from a valid claim. This protection, which in effect as long as you or your heirs own the property, is yours for a one-time premium.
For more inFormation on title insurance, visit
www.fIrstaM.cOM
15
COmmitmeNt for title insurancea commitment for title insurance is a signed and dated formal report which sets out in detail the condition of title on a particular parcel of land. it may only be used by a duly licensed title insurance agent who is also an abstractor or attorney.
what to look for in your commitment for title
- Owner’s Name: are the names the same as shown on the Purchase agreement?
- Type of Estate or Interest: Fee title or other (leasehold or equitable)
- Printed Exceptions: Current taxes, supplemental taxes (due to recent reassessment), lien for future supplemental taxes, sale to State for unpaid delinquent taxes/bonds.
- Easements: understand the type of location of all easements.
- Covenants, Conditions and Restrictions: Declaration by owners of any subdivisions prior to sale describing property restrictions and agree-ments affecting said property and future owner’s.
- Mortgages: all existing loans against the property of the existence of any paid-off loans which have not yet been reconveyed of record.
- Notice of Pendency: alerts all parties of an exist-ing foreclosure proceeding.
- State or Federal tax liens, judgements, bankruptcy or other court proceedings affecting the seller and/or property.
- Legal Description: a method of geographically identifying a parcel of land, by lot and block or meets and bounds. First american title also discloses assessors parcel number.
W h AT I s T I T L E I N s U R A N C E ?Title Insurance provides coverage for certain losses due
to defects in the title that occurred prior to your owner-
ship. The seller can give only those rights that previously
have been received with “good title”. Title insurance
protects against defects such as prior fraud or forgery
that might go undetected until after closing and possibly
jeopardize your ownership and investment.
W h y T I T L E I N s U R A N C E I s N E E d E dTitle insurance assures the buyers that they are acquiring
marketable title from the seller. It is designed to eliminate
risk or loss caused by defects in title from the past. Title
insurance protects the interest of the mortgage lender as
well as the equity of the buyer for as long as they or their
heirs have any interest in the property.
W h E N I s T h E P R E M I U M d U E ?It is a one-time premium which is paid at the close of
escrow. It is customary for the buyer to pay for the
owner’s Policy. If there is a new loan, the buyer pays for
the Lender’s Policy. The policy has a perpetual term and
provides coverage for as long as you are in a position
to suffer a loss.
d o A L L T I T L E C o M PA N I E s o F F E R T h E s A M E P R o T E C T I o N ?
Any standard American Land Title Association (ALTA)
policy covers the same basic items. however, First
American Title’s EAGLE policy combines the easy-
to-understand Plain Language Policy with additional
coverages, including coverage for events happening after
the policy date. some examples:
- Post-policy Encroachment. The owner has been in his
home for several years when a neighbor builds a patio
cover on the property. We’ll provide legal defense.
- Post-policy Forgery. someone forges the homeowners
name on a mortgage. We’ll provide legal defense.
- building Permit violation. A room added prior to the
closing date did not receive a city permit, and the new
homeowner is being forced to remove the structure. We’ll
pay for the removal, per policy limits.
- Automatic Inflation Coverage of 150%, a 10% increase
in the policy amount for each of the first five years.
U N D E R S ta N D i N g
t itLE iNSURaNCE
16
alta reaGle
* Deductible and maximum limits apply All coverages are subject to special exceptions set forth in Schedule B of the policy.
CO
Ve
re
D r
iSK
S 1. someone else owns an interest in your title p p 2. A document is not properly signed p p 3. Forgery, fraud, duress in the chain of title p p 4. defective recording of any document p p 5. There are restrictive covenants p p.
6. There is a lien on your title because there is: p p a) Mortgage p p b) a judgement, tax, or special assessment p p c) a charge by a homeowner’s association p p 7. Title is unmarketable p p 8. Mechanics lien protection p p 9. Forced removal of a structure because it:
a) extends on another property and/or easement p p b) violates a restriction in schedule b p p c) violates an existing zoning law* p p 10. Available to investors on 1 to 4 unit residential properties p 11. Cannot use the land for a single-family residence because the use violates a
restriction in schedule b or a zoning ordinance p 12. Pays rent for substitute land or facilities p 13. Unrecorded lien by a homeowners association p p 14. Unrecorded easements p p 15. Rights under unrecorded leases p p 16. Plain language statements of policy coverage and restrictions p p 17. building permit violations* p 18. Land was improperly subdivided p 19. Restrictive covenant violations p 20. Post policy forgery protection p 21. Post policy encroachment protection p 22. Post policy Living Trust coverage p 23. Enhanced access - vehicular and pedestrian p 24. Post policy inflation coverage with automatic increase in value up to 150% over five years p 25. Post Policy protection against adverse possession p 26. Post policy protection from a cloud on title p 27. Post policy protection from a prescriptive easement p 28. Protection from covenant violation resulting in your title reverting to a previous owner p 29. Coverage for boundary wall or fence encroachment* p 30. Added ownership coverage leads to enhanced marketability p 31. Protection from violation of building setback regulations p 32. Protection from discriminatory covenants p
33. Insurance coverage for a lifetime p 34. your deed was not propery filed, recorded or indexed in the public records p
35. Prior invalid transfer because of bankruptcy or creditors’ rights laws p 36. Expanded claims coverage if company is unsuccessful in establishing title
a) policy amount increases by 10% p b) you may have your loss determined at the date of your claim or at the date of settlement p37. Living Trust Coverage protects post-policy transfer to Trustee and beneficiaries. p
Eagle Policycompare our
17
CLosING CosTs: WHO PAyS WHATthiS Chart iNDiCateS WhO CuStOmarilY PaYS What COStS
Note: Prorated items will appear on Closing Statement as charges for one and credits for the other.All unpaid taxes that are due at closing are paid by seller through the closing.
1. Downpayment BuyER BuyER BuyER BuyER
2. Existing Loan payoff SELLER SELLER SELLER SELLER
3. Special assessments PRORATED PRORATED PRORATED PRORATED
4. County taxes PRORATED PRORATED PRORATED PRORATED
5. Current hoa payment PRORATED PRORATED PRORATED PRORATED
6. Realtor’s Commissions SELLER SELLER SELLER SELLER
7. New Loan origination fee BuyER BuyER BuyER
8. Discount points BuyER BuyER BuyER
9. appraisal BuyER BuyER BuyER
10. Credit Report BuyER BuyER BuyER
11. Document preparation fee BuyER SELLER BuyER
12. tax Service SELLER SELLER BuyER
13. processing BuyER SELLER BuyER
14. Underwriting BuyER SELLER BuyER
15. prepaid interest BuyER BuyER BuyER
16. fha mip, va funding fee, pmi BuyER BuyER BuyER
17. fire/hazard insurance BuyER BuyER BuyER BuyER
18. flood insurance BuyER BuyER BuyER BuyER
19. Escrow impounds (taxes & insurance) BuyER BuyER BuyER
20. Closing/Settlement fee SpLit SpLit SELLER SPLiT
21. abstract SELLER SELLER SELLER SELLER
22. title Examination BuyER BuyER BuyER BuyER
23. title insurance (Lender & Owner) BuyER BuyER BuyER BuyER
24. title insurance - final Report BuyER BuyER BuyER BuyER
25. Record Deed/mtg/mtg tax/mtg Cert BuyER BuyER BuyER BuyER
26. Record Release of mortgage SELLER SELLER SELLER SELLER
27. Lenders title policy and Endorsements BuyER BuyER BuyER BuyER
28. Documentary Stamp tax SELLER SELLER SELLER SELLER
29. Courier/Express mail SpLit SpLit SELLER SPLiT
30. wire fees SpLit SpLit SELLER SPLiT
31. pest inspection BuyER BuyER SELLER BuyER
32. property inspection BuyER BuyER BuyER BuyER
33. property Repairs (if any) SELLER SELLER SELLER SELLER
34. hoa/Disclosure fee SELLER BuyER SELLER BuyER
35. Next month’s hoa payment BuyER BuyER BuyER BuyER
36. home warranty (per contract)
cash fha va cOnv
There are many title issues that could cause you to lose your property or your mortgage investment. Even the most careful search of public records may not disclose the most dangerous threat: hidden risks. These issues may not be uncovered until years later. Without title insurance from a reputable and finan-cially solvent company, your title could be worthless. With the proper insurance, your rights will be defended in court. here are some of the issues that occur most frequently.
• deeds by persons supposedly single, but secretly married
• deeds delivered after death of grantor/grantee, without consent of grantor
• deeds in lieu of foreclosure given under duress
• Marital rights of spouse purportedly, but not legally, divorced
• Impersonation of the true owner of the land
• deeds by minors
• deeds by persons of unsound mind
• deeds to or from defunct corporations
• defective acknowledgements by notaries
• discovery or will of apparent intestate
• duress in execution of instruments
• Erroneous reports furnished by tax officials
• Forged deeds, releases, etc.
• Misrepresentation of will
• Mistakes in recording legal documents
• surviving children omitted from will
• Administration of estate of persons absent but not deceased
• birth or adoption of children after date of will
• Claims of creditors against property sold by heirs or devisees
• deed of community property recited to be separate property
• deeds by foreign parties
tItLea d d i t i o n a l
t h r e a t s
18
A home warranty is an insurance policy that covers a variety of mechanical, electrical,
and plumbing items, as well as some appliances, inside the home. optional coverage is
available for more expensive systems such as air conditioners, refrigerators, pools and spas.
The seller may purchase a home warranty plan prior to selling to protect against repairs
needed during the listing period, and the buyer may be able to assume the policy at the
close of escrow. or the seller may offer to purchase a home warranty policy for the buyer.
offering a home warranty plan may provide these benefits:
> Increase the marketablity of your home by reassuring potential buyers.
> help sell your home faster and at a higher price.
> Ward off potential disputes after the sale for repair and/or replacement of covered items.
Most home warranty plans can be paid for at the close of escrow.
A copy of the invoice is presented to First American Title, and it becomes
part of the seller’s closing costs.
a homewarranty
• deeds by persons supposedly single, but secretly married
• deeds delivered after death of grantor/grantee, without consent of grantor
• deeds in lieu of foreclosure given under duress
• Marital rights of spouse purportedly, but not legally, divorced
• Impersonation of the true owner of the land
• deeds by minors
• deeds by persons of unsound mind
• deeds to or from defunct corporations
• defective acknowledgements by notaries
• discovery or will of apparent intestate
• duress in execution of instruments
• Erroneous reports furnished by tax officials
• Forged deeds, releases, etc.
• Misrepresentation of will
• Mistakes in recording legal documents
• surviving children omitted from will
• Administration of estate of persons absent but not deceased
• birth or adoption of children after date of will
• Claims of creditors against property sold by heirs or devisees
• deed of community property recited to be separate property
• deeds by foreign parties
> adJustable rate mortgage (arm). A mortgage with an interest rate that changes over time in line with movements with the index.
> adJustment period. The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one year ARM which means that the interest rate can chance once a year.
> amortized loan. A loan that is completely paid off, “interest and principal”, by a series of regular payments that are equal or nearly equal. Also called a Level of Payments Loan.
> amendment. A change—either to alter, add to, or correct—part of an agreement without changing the principal idea or essence.
> appraisal. An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
> appreciation. an increase in the value of real estate.
> assumption of mortgage. A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to assume the loan.
> balloon paYment. The final payment of a mortgage loan when it is larger than the regular payment. It usually extinguishes the note.
> beneficiarY. The recipient of benefits, often from a deed of trust; usually the lender.
> cap. The limit on how much an interest rate or monthly payment.
> capital gains. The taxable profit derived from the sale of a capital asset. It is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fixing-up expenses, capital improvements, allowable depreciation, etc.
> certificate of reasonable value (crv). A document that establishes the maximum value and loan amount for a vA guaranteed loan.
> cc&r’s. Covenants, Conditions and Restrictions. A document that controls the use requirements and restrictions of a property.
> close of escrow. The date the documents are recorded and title passes from seller to buyer. on this date, the buyer becomes the legal owner, and title insurance becomes effective.
> closing statement. The final disclosure statement that accounts for all of the funds received and expected at the closing of the escrow, including deposits for taxes, hazard insurance and mortgage insurance.
> cloud on title. A claim, encumbrance, or condition that impairs the title to real property until disproved or eliminated through such means as a quitclaim deed or a quiet title legal action.
> comparable sales. sales that have similar characteristics as the subject property, used for analysis in the appraisal. Commonly called “comps.”
shouldknow
termsyou
19
> condominium. A system of individual fee ownership of units combined with joint ownership of common areas of the structure and land.
> contract for deed. A contract ordinarily used in connection with the sale of a property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer.
> conveYance. An instrument in writing, such as a deed or trust deed, used to transfer (convey) title to property from one person to another.
> deed of trust. An instrument used in many states in place of a mortgage.
> deed restrictions. Limitations in the deed to a property that dictate certain uses that may or may not be made of the property.
> due on sale clause. An acceleration clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership.
> earnest moneY deposit. down payment made by a purchaser of real estate as evidence of good faith; a deposit or partial payment.
> easement. A right, privilege or interest limited to a specific purpose that one party has in the land of another.
> federal national mortgage association. Popularly knows as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgage insured by FhA or guaranteed by vA, as well as conventional home mortgages.
> hazard insurance. Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. buyer often adds liability insurance and extended-coverage for personal property.
> home inspection report. A qualified inspector’s report on a property’s overall condition. The report usually covers an evaluation of both the structure and mechanical systems.
> impounds. A trust type of account established by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.
> index. The measure of interest rate changes used to determine adjustments in an ARM’s interest rate over the term of the loan.
> legal description. A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
> lien. A legal hold or claim on property as security for a debt or charge.
> loan commitment. A written promise to make a loan for a specified amount on specific terms.
> loan to value ratio. The relationship between the amount of the appraised value of the property, expressed as a percentage of the appraised value.
> margin. The number of percentage points the lender adds to the index rate to calculate the ARM interest at each adjustment.
> mortgage. The instrument by which real property is pledged as security for repayment of a loan.
> negative amortization. This occurs when monthly payments fail to cover the interest costs. The interest not covered is added to the unpaid principal balance so that even after several payments you could owe more than you did at the beginning of the loan.
> origination fee. A fee or charge for establishing a new loan.
> piti. A payment that combines Principal, Interest, Taxes and Insurance.
> point. An amount equal to 1% of the principal amount of the investment or note. The lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.
> power of attorneY. A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”
> prepaYment penaltY. A fee charged to the mortgagor who pays a loan before it is due.
> private mortgage insurance. Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.
> purchase agreement. A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under certain terms and conditions. Also called a sales contract.
> quitclaim deed. A deed operating as a release, intending to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title by the grantor.
> realtor. A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors.
> recording. Filing documents affecting real property with the County Recorder as a matter of public record.
> title insurance policY. An insurance policy which protects the purchaser, mortgagee or other party against liens or encumbrances against their property.
> warrantY deed. A real estate oriented document used to convey fee title to real property from the grantor (usually the seller) to the grantee (usually the buyer).
20
21
your MOveP L A N N I N G
About 2 months before you move
• Research your new city through the Chamber of Commerce or, if a computer is available to you, through many of the online websites.
• start cleaning closets and storage areas and decide what goes with you, what goes to a charitable organization or garage sale, and what goes in the trash.
• Talk with your accountant or an IRs advisor about any moving expenses that might be tax deductible and require records.
Contact moving companies (and the better business bureau) for services and estimates.
start a list of everyone you want to notify about your move. Keep it handy because names will pop into your mind unexpectedly.
Along with friends and relatives, include schools, doctors, dentists, creditors, attorney, accountant, broker, and any recurring services such as maid, lawn, exterminator, water softener, diaper, internet provider, magazine subscriptions, etc.
R
R
R
R
R
1 month out
Notify the post office of the move, and pick up a supply of change of address cards.
If possible, open bank accounts at the new location now so your checks can be printed, and you won’t have to rely on temporary checks which are not accepted everywhere.
Get serious about cleaning out the house; start accumulating boxes and begin packing. hold a garage sale.
Contact your insurance companies (health, auto, homeowners, renters) and discuss coverage at the new location.
Contact utility companies and arrange to disconnect/ connect at your current home and at your new home.
driving? Flying? how will you, your family, your pets, your plants, extra cars, get to the new city? Arrange for that now.
Take pets to your veterinarian for check up and regular immunizations before the trip.
R
R
R
R
R
R
R
2 weeks before
Contact your bank about closing your existing accounts when you move.
If you’re driving your car, have it serviced.
Find out what you need to do to transfer records for doctors, dentists, veterinarians, etc. be sure to get permanent records from schools, not copies. Get prescriptions for new pharmacies.
R
R
R
1 week left
Get rid of all flammable products, paint, gasoline, etc.
Contact your local trash collector about proper disposal.
Gather odds and ends: dry cleaning, safe deposit box items, prescriptions, anything you’ve loaned.
Return library books, rented videos, anything borrowed.
drain gas and oil from equipment you’re shipping, such as lawn mowers, gas weed trimmers, etc.
R
R
R
R
R
A cOUpLe of dAys
Give away plants you’re not taking.
defrost the refrigerator and freezer.
Write out clear instructions—sketch a map, too, if you can—of your new home, and include your itinerary and emergency numbers.
Keep a copy yourself, and give copies to the moving company and your family or friends.
Complete packing. be sure to set aside the items you want to take with you so the mover doesn’t accidentally load them onto the truck.
Pack local phone books. you’ll be glad you did.
Check with the utility companies to verify connect and disconnect dates after escrow closes.
Contact your Realtor® and verify when and where keys to your new home will be available.
Pick up beverages and snacks for moving day.
disconnect major appliances.
R
R
R
R
R
R
R
R
R
the bIg dAy
If you can’t be there when the movers arrive, arrange for someone to meet them.
Check the movers’ bill of lading and inventory carefully before signing. Keep papers with you in a safe place.
Make one last trip through the house, double-checking closets, drawers and cabinets. Lock the windows.
Leave the garage remote control for the new owners.
Turn off all the lights, close and lock the door, and leave the keys as prearranged with your Realtor® or new owner.
R
R
R
R
R
gOOd LUck, And enjoy your new home!
22
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
NOTES
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
NOTES
23
