Thursday, January 7, 2016

TRID Buyer Side Considerations

A few posts back, we covered some of the seller side ramifications.  Let's discuss the buyer side today.
1st: ALL ducks must be in a row.  There is no more "let's find the house then I'll talk to a lender". That needs to be done right after the initial buyer consultation!! NO ifs, ands, or buts... please don't even try that one.
2nd:  things will move rapidly immediately after ratification (all parties have signed and received a copy of the signed contract)

Ideal order after ratification:
a) set up appointment with lender for formal loan application 
b) set up home and radon inspections (if radon is included in contract). Your agent will attend so consider their schedule when setting the appointment
c) attend and negotiate home inspection.  It is the seller's responsibility for all remedies to take place in timely manner for a walk-thru 5-7 days prior to settlement
d) PURCHASER selects settlement date and time with settlement company. Many sellers are choosing to settle at a different location or at a separate time. This should occur PRIOR to buyer's time. An addendum is NOT required, however, courtesy of a written Notice form is usually provided by listing agent when seller signs at another location. 
e) Purchaser's top priority while all this is going on is to keep in communication with your lender to ensure all forms are complete, all items requested by lender are provided, etc.  PLAN on a last minute request of a copy of both sides of the canceled check for the EMD (earnest money deposit). It is more common than not.
f) Complete any forms/provide information requested by the settlement company. Determine early on if you want a survey, and if you would like the corner boundaries marked.
g) order WDI (wood destroying insect) inspection - some home inspectors now do this at the same time as the home inspection. Report is to go to buyer's settlement company and usually comes with a 1 year warranty. This must be done sooner than in the past as it must clear the underwriter's desk now to provide the CD (closing disclosure) 3 days prior to settlement
h) attend a pre-settlement walk-thru inspection 5-7 days prior to settlement. We realize that the seller is most likely in a state of packing, but due to the new Federal regulations, there is a need to determine if the contract items negotiated on the home inspection have been remedied and there are no issues. Ideally, another walk-thru will take place once the home is vacant and prior to settlement.  This brings an excellent point considered in the seller side article - a post occupancy of 3 days by the seller can cover a myriad of unfortunate circumstances at the very end. Trying to move in on settlement day may be a thing of the past.
i) have a cashier's check or certified funds to take to settlement (lender or settlement company will provide you the amount)
j) bring a photo ID with you to settlement (to prove you are YOU!)
k) leave smiling and Thank your agent for a smooth process
Your agent should be with you every step of the way. 
Don't be a lone wolf and do any of this without the consult of your agent! 


HAPPY Home Hunting!

Please note:  This states "ideal" order. There may be times when the order fluctuates as not all situations are the same. In a perfect world, this order and all parties working towards settlement in a timely fashion should produce agreeable results for all.
This information is not for reprint without the express written authorization by the owner.

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