atot realtors: 1st time homebuyer signign papers tomo

[LordSnailz]

The only reason I ask is because we are using the seller's agent ... the house was not listed on MLS and that was the only way they were willing to deal.

Now that we're signing the papers, I just want to know what things we should look out for ... it's pretty late in the game already and everything has been okay, no major issues, just want to make sure the last part is fine. Plus this is our first house and is over half a mil. so yeah we're pretty paranoid. 🙂

Also, what type of stuff should we look out for during the walk through?

 

[dartworth]

did you get an inspection?

 

[LordSnailz]

yup, inspections were all done.

 

[Vic]

Ask to see the home appraisal prior to closing. Make sure comparable values are in line.

You have the right to review your copy of the HUD-1 Settlement Statement one day prior to closing. This is the form with all the monetary breakdowns, showing where all the money being lent to you is going. Call your lender and/or the escrow company and insist on it.

At closing, you will probably have to sign somewhere around 80 or more times. Seriously. But in this huge stack are only a few crucial documents. They are:
- HUD-1 as noted above, review where you monies are going, how much you have to bring to close, etc
- Deed of Trust, legal document that secures loan to property, inspect title vesting, etc.
- The Note, dictates the terms under which you pay back the loan, read carefully, check loan amount, rate, fixed or adjustable, look for prepayment penalty, etc
- The Federal Truth-in-Lending Disclosure, discloses APR, etc
- The Payment Letter, discloses complete monthly payment including any possible escrow inpounds, MI, etc.

There is no 3 day Right to Cancel for purchases in California. The loan could fund possibly as soon as you get up from the closing table (although it probably won't be until the day after). Review all the documents carefully.

 

[waggy]

do you have a lawyer? a friend of mine got scrwed when he signed on his first house. No he did not have one with him.

 

[LordSnailz]

Thanks for the reply Vic.

I was under the impression that "close of escrow" is when you sign the paper and they hand you the keys but apparently close of escrow does not require action from the buyer. That's the time when the loan company transfer the money to the escrow company and our side of the bargain is done?

Yeah, we're planning on reviewing the docs. with our loan agent just to make sure all the numbers are correct. Good info. on the list, I'll note them down.

What is the difference between HUD-1 and say the note or the payment letter? Both include info. regarding where the monies is going ..

 

[isasir]

HUD-1 includes your closing costs, not just your payments to the bank.

 

[JulesMaximus]

Originally posted by: LordSnailz
The only reason I ask is because we are using the seller's agent ... the house was not listed on MLS and that was the only way they were willing to deal.

Now that we're signing the papers, I just want to know what things we should look out for ... it's pretty late in the game already and everything has been okay, no major issues, just want to make sure the last part is fine. Plus this is our first house and is over half a mil. so yeah we're pretty paranoid. 🙂

Also, what type of stuff should we look out for during the walk through?

Oh man, that agent is going to make out like a bandit. God, I wish my wife could hook up a deal like that...:|

BTW-Not listing it on the MLS is not ethical. I'm pretty sure that agent could be in trouble if someone reported him/her. I believe (I'd have to confirm this with my wife) that you have 24 hours to get it listed on the MLS once you sign a listing agreement.

 

[isasir]

Originally posted by: JulesMaximus
Oh man, that agent is going to make out like a bandit. God, I wish my wife could hook up a deal like that...:|

On a $500k house, is he probably making about $30-$40k on this deal? :shocked: