Benefits of Buyer Agency

Loyalty
The real estate agent must act solely in the best interest of the buyer.

Obedience
The real estate agent must follow the lawful instructions of the buyer.

Disclosure of all Material Facts
Examples, but not limited to:

• Relationships between agent and other parties.

• Existence of other known offers.

• Status of earnest money.

• Seller’s financial condition if known to buyer's agent.

• Property’s true worth.

• Commission arrangements with other brokers. We only show you properties that the

• Seller is paying the Commission on unless other agreements are made in writing and agreed to by all parties.

• Legal effect of important contract provisions.

Confidentiality
Any discussions, facts, or information that should not be revealed to others, but does not include responsibility of fairness and honesty in dealings with other parties.

Accounting in dealings
Reporting of where any money placed in the hands of the broker is kept.

Reasonable Skill and Care
Assisting/counseling buyer to arrive at a reasonable purchase price.Assisting/counseling buyer to discover material facts related to the sale.Assisting/counseling buyer in investigating the material facts related to the sale.

WHO PAYS THE COMMISSION?

The Seller Does
The Seller has generally signed a listing agreement with his/her agent specifying a certain fee to be paid, and many times it has provisions for splitting that fee with the agent who sells the property, regardless of subagency or buyer agency.

The Buyer Does
The Buyer can pay his agent a commission as set out in their written agreement. If this is the case, it would be inappropriate for the buyers’s agent to accept any portion of the fee paid by the seller.

Indirectly, The Buyer Does
Even though the seller pays the commission out of his proceeds, it has been argued that the buyer paid the commission as part of the overall purchase price. This assumes the buyer could have bought the home for less had it not been listed. In reality, all parties should understand the Appraised Value of the property includes the commission and was taken into account when the seller listed the property.

Each Party Pays Their Agent
Each party pays their agent as specified in their written agreement.

Information Needed For Loan Application

• Sales contract signed by purchaser and seller/warranty deed if refinancing.

• One (1) month current pay stubs.

• Two (2) years tax returns and W-2 forms.

• Self-employed two years Corporate Tax Returns and year-to-date profit & loss.

• Three (3) months current bank statements on ALL checking, savings, money market and stock accounts.

• An application fee check amount to be determined by lender.

Additional Items That May Be Required

• Contract for sale of residence.

• Copy of settlement statement for any property sold in past two years.

• Copy of divorce decree and final judgement.

• Certification of social security, disability or retirement income.

The Lending Process

During your loan application,
you can expect to receive:

• The best loan program for your needs.

• An estimate of funds you will need for loan approval and closing (Good Faith Estimate).

• An estimate of your total monthly house payment.

• A review of your credit report (the credit reporting agency may also contact you).

• A list of documents necessary to complete your application and approval, if any.

• A copy of all application documents for your records.

• The name and phone number of the Customer Service Specialist assigned to your loan.

Underwriting/Processing the Loan Application

• Order and evaluate your property appraisal.

• Order and review the property title documents.

• Make a final underwriting decision on your loan.

• Confirm the date, time and location of your loan closing.

• Communicate with your real estate agent during the process.

• Prepare and review the Settlement Statement (HUD-1) in advance of your closing.

• Advise loan officer whether or not you wish to have a survey ordered as part of the closing process.

Closing Your Mortgage Loan

During your loan closing,
you can expect to:

• Have the closing agent explain the closing documents to you.

• Be offered the opportunity to purchase Owner's Title Insurance on your property.

• Receive copies of all the important loan closing documents for your records.

Congratulations!

You Are a Homeowner!