SELECTING AN AGENT

Most people don t venture out into the Real Estate market without the support of an agent who finds new listings, shows homes that are on tour and offers real estate advice. The few who decide to look for a house on their own put themselves at a real disadvantage; they may not know the market in a given area, nor do they have help or access to the Multiple Listing Service (MLS) computerized listings of homes for sale that only an agent can utilize. So before you start your home shopping, you should first start shopping for a real estate professional.

YOUR REAL ESTATE PROFESSIONAL SHOULD BE...


 A major factor in finding your "special home" that suits your personal lifestyle, meets your needs and wants, yet stays within your budget.

Able to access and analyze the multiple listing service system, locating properties for sale in your specified area of interest.

Knowledgeable about your marketplace.

Respectful of your desires and let you make your own decisions, and not force you into buying something that isn't right for you.

Aware of the complicated local and state requirements affecting property that may affect your rights of ownership.

Successful in multi-party, face-to-face negotiating. Your Realtor will write up your offer and then present it to the seller for you.

Willing to cooperate with all brokers to get the best price for you in your market.


BUYER NEEDS WORKSHEET

BUYER INFORMATION

Name:
Address: City:
Home Phone: Work Phone:
Spouse Phone: Other Phone:
How many will be living in your home? How many children?
Do you have any pets? What kind?
Where are you employed
Are you currently working with another Broker? If yes, which one?
Currently, are you: A Homeowner 1st Time Buyer (circle one)
How soon would you like to move? Have you started looking for a home?
If so, how long have you been looking? What did you see that you liked?

AREA INFORMATION

What area(s) would you like to live in:
Are public/private schools an issue?
Is access to your place of employment an issue? Do you work at home?
Is access to schools an issue? Which school?
Is access to shopping an issue? Which shopping center?
Is access to public transportation an issue? If so, what type of transportation would benefit you:
Bus Service Airport Other:
Is commuting a problem or would you prefer to be close to your place of employment?
Other necessities and amenities:


PROPERTY CRITIQUE

Below is a chart to help you compare and remember each property you preview

Address:
Beds: Baths:
Sq.Ft. F/P:
Living: Dining:
Pros Cons
Address:
Beds: Baths:
Sq.Ft. F/P:
Living: Dining:
Pros Cons
Address:
Beds: Baths:
Sq.Ft. F/P:
Living: Dining:
Pros Cons
Address:
Beds: Baths:
Sq.Ft. F/P:
Living: Dining:
Pros Cons


THE BUYING PROCESS

Initial Consultation
• 
 Define agency relationship
• 
 Determine needs and wants
• 
 Discuss financial qualifications
• 
 Fill out worksheet
Loan Qualification
• 
 Discuss financial resources
• 
 Obtain pre-qualification letter
Home Shopping
• 
 Tour properties that you consider an "ideal" home while learning about current market values
Find "Ideal" Home & Make Offer
• 
 Discuss appropriate strategies w/agent make reasonable offer
• 
 Review blank contract
• 
 Prepare money deposit
Inspections & Disclosures
• 
 Buyer's approval of Transfer
• 
 Disclosure Statement, Preliminary Title Report
• 
 Physical & pest inspections
Present & Negotiate Offer
• 
 Let your agent negotiate & make the offer at the best price possible.
Submit Loan Application
• 
 Application to the lender with all necessary documents
Renegotiate Price
• 
 If critical issues are discovered during due diligence, renegotiate the price!
Open Escrow
• 
 Escrow officer will order Preliminary Title Report and send copies
• 
 Your money is deposited
Underwriting & Appraisal
• 
 Underwriter reviews files for acceptance
• 
 Appraiser gives value of home
Review Title
• 
 All title documents are searched and reviewed
Loan Commitment
• 
 Loan is approved
Remove Contingencies
Homeowners Insurance
• 
 Select insurance company & coverage then give insurance agent escrow information
Sign documents
• 
 Loan documents will go to the Title Company
• 
 Sign loan documents & closing cost statements
Down Payment/Loan Funding
• 
 Lender sends funds to Title Company
Record/Transfer Title & Close of Escrow
• 
 Deed is recorded by County Recorder office
• 
 Get keys to your new home



CONTRACT TO CLOSING

___ 1. Begin loan pre-approval process.

___ 2. Contract Signed and dated.

___ 3. Escrow account opened and earnest money deposited.

___ 4. Seller orders termite inspection if required.

___ 5. Property inspection ordered by the Buyer.

___ 6. Buyer arranges insurance for home and provides information to lender and Title Company.

___ 7. Copy of inspection to Buyer and Seller. Biuer provides Seller with repair priority list.

___ 8. Lender orders appraisal.

___ 9. Completed appraisal.

___ 10. Seller/Buyer negotiates then orders repair work.

___ 11. Buyer is approved by Lender.

___ 12. Other inspections if needed or requested by Buyer.

___ 13. Repairs complete and approved by Lender and Buyer.

___ 14. Final contingencies removed. (Review of CCR's, Certificate of Resale, etc.)

___ 15. Final closing date set.

___ 16. Confirm closing figures with Excrow Officer. Buyer must bring certified check/funds to close.

___ 17. Closing - Actual date documents are recorded.



THE LOAN PROCESS

Prequalification/Interview

 Application interview

Lender obtains all pertinent documentation

Order Documents

 Credit report, appraisal on property, verifications
of employment mortgage or rent and funds to
close, landlord ratings, preliminary title report

Loan Submission

 The loan package is assembled and
submitted to the underwriter for approval

Documentation

 Supporting documents come in

Lender checks on any problems

Requests for any additional items are made

Loan Approval

 Parties are notified of approval and prior to
documentation condition

Documents Are Drawn

 Loan documents are completed & sent to title

Borrowers come in for final signatures

Funding

 Lender reviews the loan package

Funds are transferred by wire

Recording of Documents

 Title company records the note and deed of
Trust at the contry recorder's office

Excrow is now officially close



GETTING PRE-APPROVED

Most Real Estate agens and Lenders recommend that home buyers get pre-approved with a lend before
selecting a home to purchase. The choice of a lender is a very personal decision. Your real estate
professional has access to many lenders offering a variety of loan programs to suite your particular needs.

REASONS TO GET PRE-APPROVED


 With pre-approval, you can determine which loan program best fits your need and which programs
you qualify for. (A sampling of loan programs to follow)

You will know exactly how much you are approved for. It's no fun to find your "ideal home" and
then find out you can't afford it.

Your monthly payment can be set. This will allow you to budge your money before making this
large investment.

It shows you what the likely or approximate down payment and closing cots will be.

If you are a first-time buyer, you may be able to qualify for a special first-time buyer program which
may allow you to afford more home for your money.

If you feel you would like and can afford a higher mortgage payment but are not able to meet
qualifications, co-mortgagor financing may be made available to you.

Improved your negotiating position with the seller.

Save time once you've selected a home. The loan process is already under way.


PRE-APPROVAL WORKSHEET

Date: Requesting Agent:
Borrower #1: Social Security #:
Borrower #2: Social Security #:
Address: City:
GROSS MONTHLY INCOME: MONTHLY DEBT:
Borrower #1: Car Payments:
Borrower #2: Credit Cards:
Other: Alimony:
TOTAL INCOME: Child Support:
Other:
TOTAL DEBT:
DOWN PAYMENT: Amount: Source:
CREDIT: Bankruptcy: Judgements:

Sales/Purchase Price:
Down Payment:
Loan Amount:
Loan Program: LTV:
Interest Rate: P&I:
Margin: Index:
Insurance:
Caps: PITI:
Housing Ration: Total Dept Ration:
Comments:
.
Homeowner's Association: Dues:
Private Mortgage Insurance:


MORTGAGE LOAN CHECKLIST

In order to expedite the mortgage loan process, please be sure that you have the following ready to give to your lenders.

  1. Sales Contract (On the purchase of your new home)

  2. Copy of Sales Contract and certified copy of Closing Statement (On the sale of your present home)

  3. Copy of driver's license and Social Security Card (FHA only)

  4. Residence History

    Past 24 months of residence with complete addresses
    Length of time you have lived at each residence
    Name of landlord and their address (if currently renting)

  5. Employment History

    Employers for the past two years with complete addresses
    Current pay stub
    Dates of employment for each place
    Most recent two years of W-2's
    Year-to-date profit and loss statement and current balance sheet (if self-employed only)
    If there have been any gaps in your employment, be prepared to explain

  6. Loands and Credit Cards

    Creditor's names and addresses
    Account Numbers
    Current total balances you owe
    Monthly installments, payments and how many months are left to pay

  7. Accounts

    Name and address of each financial institution
    Three months of bank statements for all accounts
    All accounts numbers
    All current balances and values

  8. Current Real Estate

    Property addresses
    Estimated market values
    Outstanding loan balances
    Amount of monthly payment
    Amount of monthly rental income, if applicable

  9. Personal Peoperty

    Net cash value of your life insurance
    Year, make and value of your automobiles
    Value of your furniture and other personal property

  10. If applicable, the following:

    Divorce papers, Certificate of Eligibility & DD2 14 (VA Only)
    Check for appraisal and credit report fees


TYPES OF LOANS

Adjustable Payment Mortgage
 Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.
Balloon Payment Loan
 A fixed rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term. May be extendable or may roll-over into another type of loan.
Buy-Down Loan
 Buy-Down loans are fixed rate loans where the interest rate and the payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment.
Community Homebuyer's Program
 A fixed rate loan for first time buyers with a low down pament, usually 3-5%. No cash reserve requirement and easier qualifying ratios. Subject to borrower meeting income limits and attendance of a four-hour training course on home ownership.
Conventional Loan
 Conventional loans are sometimes more lenient with the appraisal and condition of the property. Conventional loans are not government insured and usually have higher down payment requirements.
FHA Loan
 FHA loans are insured by the Federal housing Administration under H.U.D. They offer a low down payment and are easier to qualify for than conventional loans. Appraisal and property condition rules will be applied and loan amounts are limited.
Fixed Rate Loan
 A fixed rate loan has one interest rate that remains constant throughout the life of the loan.
Graduated Payment Mortgage
 A fixed rate loan that has payments starting lower than a standard fixed rate loan, which then increases by a predetermined amount each year for a set number of years.
Non-Qualifying Loan
(Assumable)
 Non-Qualifying loans are pre-existing loans which can be assumed by a buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.


WHAT IS AN ESCROW?

An escrow is an independent "stakeholder" account and is the vehicle by which the interests of all parties to the transaction are protected.

The escrow is created after you execute the contract for the sale of your home and becomes the depository for all monies, instructions and documents pertaining to the sale. Some aspects of the sale are not part of the escrow. For example, the buyer and seller must decide which fixtures or personal property items are included in the sales agreement. Similarly, loan negotiations occur between the buyer and the lender. Your real estate agent can guide you in these non-escrow matters.

HOW DOES THE ESCROW PROCESS WORK?

The escrow officer takes instructions based on the terms of your Purchase Agreement and the lender's requirements. 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. Escrow cannot be completed until these items have been satisified and all parties have signed escrow documents.

HOW DO I OPEN AN ESCROW?

Either your real estate agent or the buyer's agent my open escrow. As soon as you execute the Purchase Agreement, your agent will place your initial deposit into an escrow account at the title company.

HOW DO I KNOW WHERE MY MONEY GOES?

Written evidence of the deposit is generally included in your copy of the sales contract. The funds will then be deposited in a seperate escrow or trust account and processed through your local bank. You will receive a receipt for the funds from the title company.

WHAT INFORMATION DO I NEED 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 in the transaction through such information as date of birth, social security number, etc. This informations is considered confidential.

HOW LONG IS THE ESCROW?

The amount of time necessary to complete the escrow is determined by the terms of the Purchase Agreement. It is normally 45 to 60 days, but can range from a few days to several months.


LIFE OF AN ESCROW

TITLE/ESCROW
Prepare Escrow Instructions
And Pertinent Documents
Lender
Obtain Signatures
Order Title Search
Process Financing
Receive and Review
Preliminary Report
Request
Beneficiary Statement
Request or Prepare
New Loan Application
Receive Demands (if any),
Request Clarification of
Other Liens (if any) and
Review Taxes on Report
Request Beneficiary Statement and Enter
into File ... Review Terms of Transfer
and Current Payment Status
Optain Loan Approval
And Determine that
Terms are Correct
Receive Demands and
Enter into File
Request Loan
Documents
Escrow Receives Loan Documents
Review File to Determine that All Condition Have Been Met and that
All Documents are Correct and Available for Signature, prepare Closing Cost
worksheet, (Termite inspection, contingencies released, fire insurance
ordered, additional documents ... second deed of trust, bill of sale, etc...
have been prepared)
Figure File and Request Signatures
on All Remaining Documents
Sign Appointments set
for Buyer and Seller
Obtain Certified Funds
from Buyer
Return Signed Loan
Documents to Lender
Lender Funds Loan
Funds received by Title Company
Order Recording
Close File: Prepare Statements
and Disburse Funds
Complete Closing
Forward Final Documents to All
Interested Parties... Buyer, Seller, Lender, Realtor



WHAT A TITLE COMPANY DOES

REQUESTS A TITLE REPORT AND POLICY


 Title report: A report showing the condition of the title before a sale or loan transaction. After completion of the transaction, a title insurance policy is issued.

Policy: Title insurance is insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances on the property.
PAYS OFF EXISTING LOANS

The title company pays offf existing loans when so ordered.


TAXES AND INSURANCE

The title company prorates the taxes and insurance upon instructions from the buyer and the seller.


COMPUTES INTEREST ON LOANS



ACQUIRED HAZARD INSURANCE



SIGNING OF DOCUMENTS

Assists the buyer and seller when signing documents.


RECORDING DOCUMENTS

The title company records the appropriate documents with the county office, giving public notice.


DISBURSEMENT

The title company disburses the documents and money to each party involved.


A LOOK AT SOME WAYS TO TAKE
TITLE IN NEVADA

Community Property:
  • Requires a valid marriage between two people
  • Each spouse holds an undivided one-half interest in the estate
  • One spouse cannot partition the property by selling his or her interest
  • Requires signatures of both spouses to convey or encumber
  • Each spouse an devise (will) one-half of the community property
  • Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication
  • Both halves of the community property are entitled to a "stepped up" tax basis as of the date of death

Joint Tenancy With Right Of Survivorship:
  • Parties need not be married; may be more than two joint tenants
  • Each joint tenants holds an equal and undivided interest in the estate, unity of interest
  • One joint tenant can partition the property by selling his or her interest
  • Requires signatures of all joint tenants to convey or encumber the whole
  • Estate passes to surviving joint tenants outside of probate
  • No court action required to "clear" title upon death of joint tenant(s)
  • Deceased tenant's share is entitled to a "stepped up" tax basis as of the date of death

Community Property with Right Of Survivorship:
  • Requires a valid marriage between two persons
  • Each spouse holds an undivided one-half interest in the estate
  • One spouse cannot partition the property by selling his or her interest
  • Requires signatures of both spouses to convey or encumber
  • Estate passes to surviving spouse outside of probate
  • No court action required to "clear" title upon the first death
  • Both halves of the community property are entitled to a "stepped up" tax basis as of the date of death

Tenants in Common:
  • An undivided ownership in real estate by two or more persons
  • The interests need not be equal, and in the event of the death of one of the owners, no right of survivorship in the owners exists, but instead the interest passes to the heirs of the deceased
  • It exists when two or more persons acquire title, not as community property or as joint tenants. Each owner has a separate and distinct interest, which must be shown on the deed of acquisition. Each owner may deal with their interest without the consent of the other co-tenants



YOUR APPOINTMENT


Below is a list of items that you will need before your appointment to sign the escrow papers...



CASHIER'S CHECK
Get a cashier's check or certified check issued by an Nevada financial institution made payable to your title company in the amount indicated to you by your escrow officer. A personal check may delay the closing since your title company is required by law to have good funds before disbursing funds from escrow.



IDENTIFICATION
There are several acceptable forms of identification which may be used during the escrow process.
These include:
  • A current driver's license
  • Passport
One of these forms of identification must be presented at the signing of escrow in order for the signature to be notarized.


LENDER'S REQUIREMENTS
Make sure you have satisfied your lender's requirements before coming to the title company to sign papers.


FIRE & HAZARD INSURANCE
When you are buying a single family, detached home (and in some cases, a townhome), be sure to order your insurance before the loan has been approved. Next, call your escrow officer with the insurance agent's name and number so that they can make sure the policy complies with your lender's requirements. You must have the insurance in place before the lender sends money to the title company. If you do not have an insurance agent, your real estate agent can offer some suggestions.


TITLE TO HOME
Decide how you would like to hold title to your new home. You may wish to consult a lawyer or a qualified professional before making this decision.




TITLE INSURANCE

In Nevada, most real estate transactions are closed with a title insurance policy Many home buyers just assume that when they purchase apiece of property, possession of the deed to the property is all they need to prove ownership. This is not true. Hidden hazards may attach to real estate. A property owner's greatest protection is a policy of title insurance...


WHAT IS TITLE INSURANCE?
It is a contract of indemnity which guarantees that the title is as reported and, if not reported and the owner is damaged, the title policy covers the insured for their loss up to the amount of the policy. Title insurance assures owners that they are acquiring marketable title. Title insurance is designed to eliminate risk or loss caused by defects in title from the past. Title insurance provides coverage only for title problems which were already in existence at the time the policy was issued.


THE TITLE SEARCH
Title companies work to eliminate risks by performing a search of the public records or through the title company's own plant. The search consists of public records, laws and court decisions pertaining to the property to determine the current recorded ownership, any recorded liens or encumbrances or any other matters of record which could affect the title to the property. When a title search is complete, the title company issues a preliminary report detailing the current status of title.


THE PRELIMINARY REPORT
A preliminary report contains vital information which can affect the close of escrow: Ownership of the subject property; where the current owners hold title; matters of record that specifically affect the subject property or the owners of the property; a legal description of the property and an informational plat map.




THE PRELIMINARY REPORT

The preliminary report indicates the type of title insurance offered by the title company It also indicates the exclusions and exceptions from coverage under which the policy will be issued...


REVIEWING THE PRELIMINARY TITLE REPORT

  • The preliminary report should be reviewed immediately with special attention to the following areas...

  • Verify the ownership vesting. Make sure the names on the report are the same as the names on the purchase contract.

  • Read the informational notes for important facts about the property.

  • Carefully review the exceptions: bonds, deeds of trust, current taxes, CC&R's and easements.

  • Look for surprises. If you can't locate an easement, if an unexpected deed of trust appears, etc., call your escrow officer right away. Let your title company be the problem solver. Top notch escrow officers and title companies go out of their way to resolve problems quickly and accurately.



COVERAGE POLICY

Not all risks can be determined by a title search, since certain things such as forgeries, identity of persons, incompetency, failure to comply with the law~ or incapacity, cannot be disclosed by an examination of the public record. The preliminary title report is an offer to insure under certain situations, whereas the title policy is a contract that gives coverage against such problems.

The California Land Title Association is the standard policy of title insurance in Nevada. The list below shows you what is covered...


WHAT IS COVERED...
  • A forged signature on the deed
  • Mistakes in the interpretation of wills or other legal documents
  • Impersonation of the real owner
  • Errors in copying or indexing
  • Falsification of records
  • Deeds delivered without the consent of the grantor
  • Undisclosed or missing heirs
  • Deeds and mortgages signed by persons of unsound mind, by minors or by someone listed as single but in fact, married
  • Recording mistakes
  • With regard to lender's coverage it covers:
    • The priority of the insured mortgage
    • The invalidity or unenforceability of the insured assignment
    • The invalidity or unenforceability of the lien of the insured mortgage on the title


WHAT IS NOT COVERED...
  • Unrecorded matters
  • Matters that a correct survey would show, i.e. boundaries, easements, etc.
  • Matters that a physical inspection of the property would disclose
  • Matters known, created or assumed by the insured
  • Rights of parties in possession
  • Unpatented water and mineral rights


AFTER THE ESCROW SIGNING

AFTER COMPLETING THE SIGN-OFF...
After you have signed all the necessary instructions and documents, the escrow officer will return them to the lender for a final review. Following the review, which usually occurs within a day or two, the lender is ready to fund the loan and advises the escrow officer, so that the necessary work can be completed to record the documents and "close" the escrow.


AN ESCROW CLOSING IS...
A legal transfer of title to the property from the seller to the buyer and is the culmination of the transaction.

Once all the conditions of the escrow have been satisfied, the escrow officer advises you of the date that escrow will close and takes care of the technical and financial details. Usually the Grant Deed and Deed of Trust are recorded within one working day of the escrow's receipt of loan finds. This completes the transaction and signifies the "close of escrow."


KEYS AND POSSESSION&
The keys to your new home will be released to you after recordation of the escrow documents. Your real estate agent will make the necessary arrangements so that the keys will be available to you. Escrow does not hold the keys for release. Unless otherwise specified in the Purchase Contract, possession normally takes place after recordation of the documents.


WHEN YOU WILL RECEIVE THE DEED...
The deed to your new home will be mailed directly to you by the County Recorder's office. The time frame is usually several weeks, depending upon volume.




CLOSING COSTS

Listed below are some typical closing costs you may incur as part of your loan transaction. When you apply for a loan, you will receive a Good Faith Estimate of closing costs and settlement charges, and a booklet that will explain these costs.


Appraisal Fee
 This is a one-time fee that pays for an appraisal. The appraisal is made by an independent fee appraiser.
Credit Report Fee
 A one time fee that covers the cost of the credit report.
Document Preparation Fee
 There may be a separate fee that covers the preparation of the final legal papers.
Loan Discount
 A one-time fee used to adjust the yield on the loan to what market conditions demand. It is often called "points."
Loan Origination Fee
 The lender's administrative costs in processing the loan are covered by this fee.
Miscellaneous Title Charges
 The title company may charge fees for a title search, title examination, document preparation, recording fees, a settlement or closing fee, and notary fees.
PMI Premium
 You might be required to pay an up front fee for mortgage insurance, depending on the amount of your downpayment. Lenders may also require monies be placed into a reserve account held by them.
Prepaid Interest
 Depending on the time of month your loan closes, this per diem charge may vary from a full month's interest to that of a few days. If your loan closes at the end of the month, you will have to pay interest only for a day or so.
Taxes and Hazard Insurance
 You may be required to reimburse the seller for property taxes, depending on the month in which you close. You will also need to pay a year's hazard insurance premium up front. Also, you might be required to put a certain amount for taxes and insurance into a special reserve account held by the lender.


CLOSING COST DISBURSEMENT SHEET
(As is customary in the state of Nevada)


Cash Transaction


 SELLER
 BUYER
Escrow Fee
 50%
 50%
Owners Title Policy
 X
Recording / Affidavit Fees
A=Affidavit D=Deed
 A
 D
Home Warranty Premium
 X
 X
Real Estate Commission
 X
Termite Inspection
 X
Homeowners Assoc. Certificate of
Resale Fee/Transfer Fee
 X
 X
Existing Loan Payoff
 X
Release / Reconveyance Fee
 X
Nevada Transfer Tax ($2.50/1000)
 X



Assumption


 SELLER
 BUYER
Owners Title Policy
 X
Recording / Affidavit Fees
A=Affidavit D=Deed
 A
 D
Real Estate Commission
 X
Termite Inspection
 X
Homeowners Assoc. Cert. Of
Resale/Transfer Fee
 X
 X
Existing Loan Transfer Fees
 50%
 50%
Existing Loan Payoff
 X
Nevada Transfer Tax ($2.50/1000)
 X





New FHA/VA Loan Transaction


 SELLER
 BUYER
Escrow Fee
 50% (100% on VA)
 50%
Owners Title Policy
 X
Lenders ALTA Title Policy
X
Recording / Affidavit Fees
A = Affidavit D = Deed
DT = Deed of Trust
 A
 D/DT
Home Warranty Premium
 X
Real Estate Commission
 X
Termite Inspection
 X
Homeowners Assoc. Cert. Of Resale/Transfer Fee
 X
 X
Existing Loan Payoff
 X
Release/Reconveyance Fee
 X
1st Year Insurance Premium
X
Discount Points (negotiable)
 X
 X
Origination Fee
X
Appraisal Fee
 X
Lenders Doc. Prep Fee
 X
Credit Report Fee
X
Nevada Transfer Tax ($2.50/1000)
 X



New Conventional Loan Transaction


 SELLER
 BUYER
Escrow Fee
 50%
 50%
Owners Title Policy
 X
Lenders ALTA Title Policy
X
Recording / Affidavit Fees
A = Affidavit D = Deed
DT = Deed of Trust
 A
 D/DT
Home Warranty Premium
 X
 X
Real Estate Commission
 X
Termite Inspection
 X
Homeowners Assoc. Transfer Fee
 50%
 50%
Existing Loan Payoff
 X
Release / Reconveyance Fee
 X
1st Year Insurance Premium

Discount Points %
 X
 X
Origination Fee
X
Appraisal Fee
X
Lenders Dec. Prep Fee
 X
Credit Report Fee
X
Nevada Transfer Tax ($2.50/1000)
 X

This form is furnished as a courtesy of Equity Title Agency, Inc. This form represents "customary" costs only and not necessarily those that are negotiable. Consult your real estate agent for specific costs for your transaction.




INSPECTIONS

Real estate contracts often contain contingency clauses that allow buyers to inspect the property physically (usually at their expense). This inspection provides a comprehensive review of the infrastructure of the property.

Which inspections to order is usually a matter of observation and knowledge of what is critical to a particular region or area. Below is a list of the three most common types of inspection:


STRUCTURAL PEST CONTROL
  • To determine any active infestation by wood destroying organisms
  • Section I on the report will be items that need immediate attention because of active infestation and lenders usually want the work performed prior to funding the loan.
  • Section II on the report will be items that could cause infestation and, if not corrected, could cause damage.


PHYSICAL INSPECTION
  • This inspection encompasses roof, plumbing, electrical, heating and any other accessible area of the structure.
  • A detailed report will be written with recommendations, for repair or for further inspection by a specialist.


SOME OTHER COMMON INSPECTIONS

  • Water Conservation
  • Well and Septic
  • Mold
  • Hazardous Materials
  • Zoning and Building Permit Compliance
  • Contractors Home Inspection
  • Chimney Inspection
  • Heating and Air Conditioning
  • Structural Engineering
  • Energy Audit
  • Geotechnical




HOME WARRANTIES

As a Real Estate professional, it is my duty to inform both Buyers and Sellers about the advantages of home warranty protection. This policy protects the Buyer by paying for certain repairs and costs of major mechanical systems and major appliances in the home such as heating and air-conditioning. There are a variety of plans available, and I would be happy to gather a selection of plans for you to review.


BENEFITS OF HOME WARRANTY COVERAGE TO THE SELLER
  • Home may sell faster and at a higher price
  • Optional coverage during the listing period
  • Protection from legal disputes that occur after the sale
  • Increases the marketability of your home


BENEFITS OF HOME WARRANTY COVERAGE TO THE BUYER
  • Warranty coverage for your major systems and built- in appliances
  • Protects your cash flow
  • Puts a complete network of qualified service technicians at your service
  • Low deductible




UNDERSTANDING THE
NEVADA TAX CALENDAR
IMPORTANT DATES

July 1 or before: Business and aircraft personal property declarations are mailed.

July 1: New fiscal year begins.

July 1 - June 15: Filing period for all veterans, disabled veterans, surviving spouses, blind exemptions to be applied to real property. Filing for exemptions on personal property may be done on a year round basis.

July 31: All business and airplane personal property declarations should be submitted to the Assessor's Office by this date.

3rd Monday in August: Final day to pay 1st quarterly installment of taxes.

1st Monday in October: Deadline for filing open space or agricultural assessments. Final day to pay 2nd quarterly installment of taxes.

December: Property Value Notice postcards mailed to all real property owners. Tax Roll published in newspaper.

1st Monday in January: Final day to pay 3rd quarterly installment of taxes.

January 15: Deadline for filing petitions to appeal property values to County Board of Equalization.

January - February: County Board of Equalization meets to hear taxpayer appeals.

February 1 - April 15: Application period for Senior Citizen Tax/Rent Assistance Program.

February - March: State Board of Equalization meets.

1st Monday in March: Final day to pay 4th quarterly installment of taxes.

June - July: Property tax bills mailed. These bills are taxes on the property in advance for the fiscal year commencing on July 1. If you have further questions about the laws that govern the Assessor's Office, please call (702) 455-3882.



IMPORTANT PROPERTY TAX INFORMATION


How Are Property Taxes Calculated?

To calculate the tax on your home, let's assume you have a home with a taxable value of $100,000, located in the City of Las Vegas. The tax rate for 2001-02 in the City is $3.2546 per hundred of assessed value. To determine the assessed value, multiply the taxable value of the home ($100,000) by the assessment ratio (35%):

              $100,000 X .35 = $35,000 assessed value

To calculate the tax, multiply the assessed value by the tax rate ($3.2546 per hundred dollars of assessed value).

$35,000 (assessed value) x .032546 (tax rate) = $1,139 taxes for the 2001-02 fiscal year.



Glossary of Terms

Assessed Value: The property value determined by the County Assessor and used by the Treasurer to calculate a tax amount. The method of determining the assessed value is specified in Nevada tax law (NRS 361) and by regulations from the Nevada Department of Taxation. The assessed value is stored at a rate of 35% of the taxable value of the property.

Assessed Value Ratio: 35% of the current taxable value.

Assessment: The valuation of property for tax purposes.

Assessor: The elected official whose legal responsibility it is to discover, list and value all property in his jurisdiction.

Improvements: All buildings, structures, pools, fences, etc., fixed to the land.

Supplemental Value/Tax: Value given to new construction completed after the December Secured Roll Close. Supplemental value may be billed through the Assessor's Personal Property Division or on the Treasurer's real property tax bill. When the supplemental value is merged to the Treasurer's tax bill, it is identified as "Unsecured Supplemental."

Tax Year or Fiscal Year: Most governments operate on a fiscal basis. Nevada's fiscal year begins July 1 of each year and ends on June 30 of the following calendar year. Taxes are paid in advance.

Tax rate questions: Clark County Manager's Office - Budget Division 702-455-3543 Assessment questions: Assessor's Office 702-455-4997





MOVING EXPENSES

When you meet the IRS's definition of a qualifying move, the following items are tax deductible:


TAX DEDUCTIBLE MOVING EXPENSES:
  • The cost of trips to the area of a new job to look for a home. Your home shopping expedition does not have to be successful for the cost to be deductible.

  • The cost of having your furniture and other household items shipped, including the cost of packing, insurance, and storage for up to 30 days.

  • The cost of getting your family to the new home town, including food and lodging expenses on the trip.

  • The cost of lodging and 80% of food expenses for up to 30 days in the new home town, if these temporary living expenses are necessary because you have not yet found your ideal home or it is not ready when you arrive.

  • Certain costs associated with the sale of your old home and purchase of the new one. These expenses, including real estate commissions, legal fees, state transfer taxes and appraisal and title fees, could be used either to reduce the gain on the sale of the previous home or to boost the basis of the new one. But it's usually beneficial to count them as moving expenses up to the allowable dollar limits, because that gives you an immediate tax benefit.





MOVING CHECKLIST

In order to expedite the mortgage loan process, please be sure that you have the following ready to give to your lenders.

OLD RESIDENCE

Changing Address
  1. Forward address at post office

  2. Credit card accounts

  3. Publications

  4. Bank accounts

Utilities to Cancel
  1. Telephone, check for refund

  2. Gas & Electric, check for refund

  3. Water, check for refund

  4. Garbage

  5. Cable, check for refund

  6. School transcripts for kids

 Moving Preparation
  1. Defrost refrigerator

  2. Auto transportation needs

  3. Pet transportation needs

  4. Travel cash or checks

  5. Hand carry jewelry and valuables

  6. Leave keys

  7. Leave garage door openers

Medical Services to Obtain
  1. Medical records

  2. Dental records

  3. Veterinarian records


NEW RESIDENCE

Changing Address
  1. Ask postman to hold mail for your arrival

Utilities
  1. Telephone; new number______________

  2. Gas

  3. Electric

  4. Water

  5. Garbage

  6. Cable

 Government Licenses & Services
  1. Apply for state driver's license

  2. Register car

  3. New address on driver's license

  4. Register to vote

  5. Register children in school

Medical Services
  1. New doctor

  2. New dentist

  3. New veterinarian


HOME BUYER'S GLOSSARY

Agency
 A legal relationship in which someone (principal) hires someone else (agent) to represent them to a third party.
Application Fee
 A fee to cover some of the charges of the loan process.
Appraisal Fee
 A fee charged by the lender for an appraisal.
Assessed Value
 The value placed on property by the Central Appraisal District as a basis for taxation.
Balloon Payment
 An instance in which the final installment payment on a note is greater than the preceding payments, and pays the note in full.
Chain of Title
 A history of conveyances and encumbrances affecting the title of real property.
Conventional Mortgage
 A mortgage securing a loan made by investors without government underwriting -- that is, not FHA insured or VA guaranteed.
Convey or Conveyance
 Process of transferring ownership of property from one person to another.
Courier Fee
 Charges for delivery.
Credit Report Fee
 Assessed by the lender for a required credit report from a credit bureau.
Deed
 A document which, when properly executed and delivered, conveys title of real property.
Disclosure
 To make known or public. When dealing with real property, all disclosures should be made in writing.
Discount Points
 A negotiable fee paid to the lender to secure financing for the buyer. Discount points are up-front interest charges to reduce the interest rate on the loan over the life, or a portion, of the loan s term. One discount point equals one percent of the loan amount.
Earnest Money
 Money deposited by a buyer as evidence of good faith.
Encumbrance
 Anything that affects or limits the ownership of real property, such as mortgages, liens, easements or restrictions of any kind.
Escrow Fee
 Charged by the title company to service the transaction and to escrow money and documents. Usually paid by the buyer.
Escrow
 The deposit of documents and funds with instructions to a neutral third party to carry out the provisions of an agreement or contract.


HOME BUYER'S GLOSSARY (Contd.)

Exclusive Right to Sell Listing
 A written agreement between owner and agent giving agent the right to sell a property and collect a fee for a set term.
Fair Market Value
 The price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure.
Loan Origination Fee
 Normally 1% of the loan amount, charged by the lender to the buyer.
Mortgage
 A legal document that provides security for repayment of a promissory note.
Mortgagee's Title Policy
 Required by lenders to ensure that the lender has a valid lien. It does not protect the buyer. Also required for 2nd mortgages.
Owner s Title Policy
 Insures the buyer against loss due to any defect of the title not excepted to or excluded from the policy.
Points
 Paid by the buyer or seller. One point is equal to one percent of the loan amount.
Principal
 The employer of an agent in an agency relationship.
Recording Fee
 Charged by the County Clerk to record documents in the public records.
Charges are based on number of pages recorded.
Septic Inspection
 The septic system must have certificate by the city or county Health Department.
Survey
 Survey of property required by lender; shows lot size, easements, any encroachments, locations of improvements, etc.
Tax Service Fee
 Required by the lender for collection and disbursement of tax escrow by a servicing company.
Termite Inspection
 Required by lender to show property free and clear of active termites.
Time is of the Essence
 Demands punctual performance in a binding contract.
Title Policy
 Insurance policy on the ownership of real property, against defects in title.
Title
 In dealing with Real Property, title means ownership.
Underwriting Fee
 Charged by a lender to underwrite the loan.
VA Funding Fee
 Veteran's Administration charge for originating a VA loan.
Warehouse Fee
 Charged by the lender to hold the loan locally before selling it in the secondary mortgage market to an investor.
Zoning
 Act of city authorities specifying type of use for which property may be used.


BUYER CONTACTS


REAL ESTATE AGENT
 ESCROW OFFICER
LENDER
 PEST CONTROL INSPECTOR
HOME INSPECTOR
 INSURANCE AGENT
OTHER IMPORTANT CONTACTS: