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Buyer Info
- Deed Restrictions
- Agreement of Purchase
- How to Become a Buyer
- Shop Smarter... not harder
- How Much House Can You Afford?
- Get Your Financing in Order
- Making Your Purchase
- Making Decisions About Your Purchase
- What Happens To The Earnest Money?
- How Does The Seller Prove The Title Is Clear?
- What Conditions Do You Want To Place On Your Buying The House?
- What Are You Buying?
- What Special Provisions Should Be Included?
- When Should Closing Be and When Do You Take Possession?
- The Settlement Process
- What Are All Those Closing Costs?
- Charges Related To The Loan
- Items Paid In Advance To The Lender
- Deposits Or Reserves With The Lender
- Title Charges
- Recording And Transfer Charges
- Closing
- Closing- SELLERS GENERALLY PAY...
- Closing- BUYERS GENERALLY PAY...
- What is an Escrow?
- How Does the Escrow Process Work?
- What Does the Escrow Holder Do?
- How Do I Open An Escrow?
- What Information Will I Have to Provide?
- How Long is an Escrow?
- When Do I sign Escrow Instructions and Where?
- Your Escrow Appointment
- After Your Appointment
- Escrow Closing
- Benefits
- Moving Tips
- Financing
How to Become a Buyer
You are about to embark on one of the most important and exciting decisions in your lifetime - the selection and purchase of a home. It is a decision that will bring you years of comfort and joy.
Our sales associates can help you design the home you want efficiently and quickly. Discuss with our associates the type of home you believe will be right for your needs. Do you entertain a lot? Garden? Barbecue? Work at home? Are you a chef? A wardrobe buff? A total couch potato?
Once your offer is accepted, you will have a lot to do in a short period of time. We will walk you through the process including lending, insurance, and title to help keep you on track and organized.
Back to TopFine tune those dreams of your future home by working on the answers to two questions:
- How much house can you afford?
- What are your needs and preferences in a home?
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How Much House Can You Afford?
Though you may be willing to spend until it hurts, the real name of this game is how much a lender calculates you can afford. We will put you in touch with a preferred lender that we trust to help you through the financial process of pre-qualifying (targeting the amount that a financial institution will lend you) and pre-approving your loan.
In general, lenders allow your total monthly housing costs to go as high as approximately 30 percent of your gross monthly income. The second requirement is that no more than approximately 38 percent of your gross monthly income can be tied up in total monthly house payment and payments on outstanding long-term debt. These figures are of course a guideline and each lender will adjust their guidelines to meet their individual requirements.
Lenders use slightly different formulas for arriving at "total monthly house payment". These costs generally include your mortgage principal, interest payment, property taxes as a monthly figure, and hazard insurance as a monthly figure. These four items are referred to as PITI (principal, interest, taxes and insurance). If you're required to pay private mortgage insurance (PMI) because your down payment is less than 20 those premium payments will also be included. Homeowners insurance and builders warranty insurance (to be paid for by purchaser) may also be required by your lender. For town homes, the monthly homeowner's association fees will be included. Keep in mind, these formulas aren't etched in stone and things change from lender to lender, so you're safest if you talk to our professionals.
Back to TopWe will get together with a lender to complete your loan application and get the financing process started. Be prepared to provide the lender with copies of many important and necessary documents.
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In order to be fair to everybody the builder deals with, the builder's standard agreement of purchase and sale for a town home is non-negotiable. You may add upgrades and a list of costs will be provided. We will work very closely with you to ensure that you understand exactly what the costs are with every item you choose.
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Making Decisions About Your Purchase
Below are some of the items you'll need to consider and how the purchase process works.
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What Happens To The Earnest Money?
This "deposit" is made, in part, to show the seller you're serious about buying. The seller doesn't actually receive the earnest money. A third party - the escrow company - holds the deposit in a special trust (or escrow account) until the sale is closed.
When you complete the sale, the deposit money is applied to your down payment or other closing costs. If you fail to buy the house, the seller has the right to keep the earnest money. If the seller fails to fulfill his obligations, the money is generally yours.
Back to TopHow Does The Seller Prove The Title Is Clear?
A title report spells out who has the right to ownership of a property. It is said to be "clear" if there are no substantial claims or liens (such as a mortgage) against it.
A "title search" is done by the title company and an owner's policy of title insurance is issued at the cost of the purchaser. In order to issue this insurance policy, which protects you against losses that come from claims against the title, a title company first searches the title. Because you are insured (usually for the sales price) the owner's insurance provides the most coverage.
An abstract of title (title report) is prepared showing a brief history of the ownership and any legal documents that effect title.
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What Conditions Do You Want To Place On Your Buying The House?
When you commit to buy the house by creating an offer, you may make that commitment contingent upon certain things happening, such as your securing financing for the home. We will work closely with you and the finance company.
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The contract should spell out everything that is part of the purchase that may not be clearly part of the real estate. Common items that could cause questions include appliances, light fixtures (such as the chandelier in the dining room), shades, blinds, curtains and rods, screens, shelving or cabinets, type of flooring, and special finishes. A menu of items will be provided for you to review with us so that you can customize your home the way you want it.
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What Special Provisions Should Be Included?
All contracts of sale include some standard provisions, such as one for property taxes, insurance costs, utility bills, and special assessments to be prorated at closing between buyer and seller. Others outline particulars about what happens if the property is damaged before closing or if the seller or buyer fails to go through with the sale. Our on-site personnel will review all the small print with you.
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When Should Closing Be and When Do You Take Possession?
The contract will have a place to write in the time when you will take physical possession of the house. If you can't go through with the purchase if the closing doesn't take place by a certain time, the contract should say "time is of the essence". This statement binds you too, so be sure you can fulfill your part of the contract by the stated date.
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All the pieces start coming together. Your lender has approved your loan. Except for the seller's paying off the existing mortgage, the title is clear. The property inspector you hired has submitted a report and finds no major structural or mechanical flaws with the house. You, your realtor, and the seller's agent have completed a "walk- through", a final inspection of the property. (The walk-through inspection assures you that no damage has occurred since the property inspector looked over your house or that work you specified in the contract was completed. With new homes, you'll often find details that aren't completed when you made the offer, so they were listed in the contract to be completed before closing.)
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What Are All Those Closing Costs?
Either the day you applied for your loan or within three days afterward, you should have received from your lender a "good faith estimate" of the fees charged for closing. This good faith estimate includes fees charged not only by the lender, but all parties involved.
The uniform settlement sheet you receive at closing will be divided into categories so that it's easier to see what the charges are related to. For example, some of the categories are: payments connected with the loan, the title, money that must be placed in escrow with the lender, money that must be paid in advance to the lender, the broker's commission, recording fees, and document preparation fees.
In your contract, you and the seller agree who will pay what and although it's likely you won't be paying all the closing costs, here's a general rundown on what some of those costs include:
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The loan origination fee (if any) covers the lender's administrative costs. The loan discount, referred to as points (each point being equal to 1 percent of the loan amount), is extra interest paid to the lender to make up the difference between market interest and the interest of the loan.
Other charges will most likely include an appraisal fee (to make sure the house is worth what you're paying for it - thereby assuring the lender that the house has enough value to cover the loan amount), and a credit report. If you are required to pay PMI (Private Mortgage Insurance for less than 20% down), a charge will be included since the lender obtains the insurance for you. If you are assuming the seller's mortgage rather than getting a new loan, an assumption fee will be listed.
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Items Paid In Advance To The Lender
Items paid in advance generally include mortgage interest (from the closing date to the date your first payment is due), the first year's hazard insurance, and, if required, the first year's PMI premium.
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Deposits Or Reserves With The Lender
Reserves are extra amounts collected (usually 2 months) for hazard insurance, property taxes (depends on the time of year you close the transaction), and PMI (if required). They are collected when these items are to be paid as part of your monthly payment. If you are buying a condominium or townhouse, you may also have to pay some portion of the homeowner's association fees.
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Title charges include fees for the title search and fees for preparing the documents for closing and transfer of title. There will be a one time fee/premium for the owner's title insurance and a one time fee/premium for the lenders title insurance. For more information, see What is Escrow?
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Recording And Transfer Charges
These fees are for recording the deed of trust (mortgage) and the general warranty deed. There may also be transfer taxes which are fees for transferring property, and notary fees.
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Before closing, any issues (such as problems you found during the walk through) should be resolved. The closing becomes a formality in which your title/escrow officer will explain each paper and then will ask you to review and sign it.
As a buyer, you'll sign a note in which you agree to pay back the mortgage loan and pledge the house as security until it is paid off. You'll also sign a number of other papers that are required as acknowledgments that you have received all the information you should have about the loan and the transaction. Don't be surprised if some of the documents seem repetitive.
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- Real Estate Commission
- Payoff of all loans in seller's name (or existing loan balance if being assumed by buyer)
- Interest accrued to lender being paid off
- Statement Fees, reconveyance fees and any loan prepayment penalties
- Any judgments, tax liens, etc., against the seller and recording charges to clear all documents of record against seller
- Tax prorating (for any unpaid taxes up to time of transfer of title)
- Any and all delinquent taxes
- Notary fees
- Courier fees
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- Title Insurance premiums
- Escrow fee
- Notary fees
- Recording charges for all documents in buyer's name
- Termite Inspection (if required by Buyer)
- Tax prorating (from date of acquisition)
- Homeowner's dues (prorated)
- All new loan charges
- Interest on the new loan from the date of funding to 30 days prior to first payment
- Assumption/change or records fees for takeover of existing loan
- Inspection fees (roof, property inspection, etc.)
- City transfer/conveyance tax (if any)
- Fire insurance premium for first year
- Courier fees
- Any loan fees required by buyer's lender
- Document preparation fee for the deed
- Document transfer tax (if any)
- Any city transfer/conveyance tax
- Home warranty (according to contract)
When opening an escrow, the buyer and seller of a piece of property establish terms and conditions for the transfer of ownership of that property. These terms and conditions are given to a neutral third party known as the escrow holder. The escrow holder in turn has the responsibility of seeing that the terms of the escrow are carried out. The escrow is an independent, neutral account and the vehicle by which the interest of all parties to the transaction are protected.
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How Does the Escrow Process Work?
The Escrow Officer takes instructions based on the terms of your Purchase Agreement and the lender's requirement. The escrow officer can hold inspection reports and bills for work performed as required by the purchase agreement. Other elements of the escrow include hazard and title insurance, and the grant deed from the seller to you. An escrow cannot be completed until these items have been satisfied and all parties have signed escrow documents.
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What Does the Escrow Holder Do?
The escrow holder is a neutral third party that maintains the escrow and impartially oversees the escrow process, insuring that all conditions of the sale are properly met.
The escrow holder's duties include:
- Serve as the neutral agent and the liaison between all parties involved.
- Prepare the escrow instructions.
- Request a preliminary title search to determine the status of title to the property.
- Request a beneficiary's statement if debt or obligations are to be taken over by the buyer or paid in full by the seller.
- Comply with the lender's requirements as specified in their instructions to escrow.
- Receive and handle purchase funds from the buyer.
- Prepare or secure the deed and other documents related to the escrow.
- Prorate taxes, interest, insurance and rents.
- Secure releases of all contingencies or other conditions imposed on the escrow.
- Record the deed and any other documents.
- Request the title insurance policy.
- Close the escrow pursuant to instructions supplied by the seller, buyer, and lender, if any.
- Disburse funds as authorized by the instructions, including charges for title insurance, recording fees, real estate commissions and loan payoffs.
- Prepare final statements for all parties involved that account for the disposition of all funds held in the escrow account.
We will do this for you. As soon as you execute the purchase agreement, we will place your initial (earnest money) deposit into an escrow account at the title company (American Land Title Company c/o Bobbie Irwin).
Written evidence of the deposit is generally included in your copy of the sales contract. The funds will then be deposited in a separate escrow account and processed through your local bank. You will receive a receipt for the funds from the title company.
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What Information Will I Have to Provide?
You may be asked to complete a statement of identity as part of the paperwork. Because many people have the same name, the statement of identity is used to identify the specific person involved in the transaction. Some of the information you may be asked to provide would include date of birth, social security number, etc. This information is strictly confidential.
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The length of an escrow is determined by the terms of the Purchase Agreement and can range from a few days to several months depending on which town home you are purchasing (existing inventory or to be built).
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When Do I sign Escrow Instructions and Where?
A few days before closing, Your escrow officer will contact you to make the appointment for you to sign your escrow instructions, grant deed and final papers. At this time, your escrow officer will also tell you the amount of money you will need to bring close the escrow.
This is a list of items you will need in preparation for your appointment to sign escrow papers:
- Identification - All Parties - There are several acceptable forms of identification which may be presented. One of the following forms must be presented at the signing of escrow in order for the signature to be notarized: a current driver's license, or passport.
- Cashier's Check - Buyers - You need a cashier's check or a certified check issued by a Texas financial institution made payable to the title company in the amount given to you by your Escrow Officer. A personal check will delay the closing since the title company is required by law to have "good funds" before disbursing funds from the escrow.
- Lender's Requirements - Buyers - Check with your lender to make sure you have satisfied all your lender's requirements before coming to the title company to sign papers.
- Fire and Hazard Insurance - Buyers - You must have fire and hazard insurance in place before the lender will release any funds to the title company, to fund the loan. Whenever you buy a single family home you must have insurance. Once you have spoken to your insurance agent, call the escrow officer with the insurance agent's name and phone number so they can be sure the policy complies with your lender's requirements.
- Title to Your Home - Buyers - You may refer to materials we will supply you or contact your attorney or tax consultant for more specific advice.
After all parties have signed the necessary papers, your escrow officer will return the buyer's loan documents to the lender for a final review. This review usually occurs within a few days of execution of the documents. Once the review is completed, the lender will call your escrow officer so that the necessary final paperwork can be completed to record the documents and close the escrow.
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The escrow closing is the legal transfer of title to the property from the seller to the buyer. Usually the grant deed and the deed of trust are recorded within one working day of the title company's receipt of loan funds.
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Architecture and Landscape Guidelines
CCRs
- Registered Copy of CCRs
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LUXURY BRAND NEW TOWNHOMES FOR SALE
Mon. to Sat 11 a.m. to 6 p.m.,
Sun. Noon to 5 p.m.
309 Metropolitan Drive . Plano, Texas 75023 . (972)517-1100
STOP BY AND VISIT TODAY!
75 to Legacy, then West on Legacy to Chase Oaks. Turn South and follow signs to the sales office.
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