Rania Habchi

Step #1:

Get “pre-approved” with a lender. We need to make sure you are comfortable with the payment, and that your finances are “in order”. The lender will review what your payments will be based on the price you qualify for taking, into consideration any down payment amount. As we locate properties in which you are interested, we will run these payment numbers again with the accurate tax amounts, any HOA dues, SIDS, LIDS, assessments, figured in before we make an offer. We will need to have $1,000-$3,000 available for an Earnest Money Deposit to submit with any offer. This can be in the form of a personal check to present with the offer, but may need to be in certified funds once an offer is accepted and we are opening escrow. The Earnest Money Deposit check does apply towards the purchase of your home. You may need reserves (like in savings, or a 401K, or stocks, etc) in place to cover a certain number of monthly payments; you may need to have funds available to cover closing costs.  The different types of financing will be reviewed and we will find a loan program that will suit your budget. You will also eventually need to have a check for the appraisal, which is usually $400-$450, which will be ordered after we have acceptance of the offer.

Step #2:

We will discuss your wants and needs; this can be done face to face or via e-mail.  I will look into the available inventory and see what we can find that suits your needs.

Step #3:

We will go out looking at homes when it is convenient for you. Please do not talk to any other agents (for example, the listing agent whose name is on the sign in the yard), I am working for you, and I want what is best for you.  There is the rare occasion that I will represent a seller and a buyer for the same property (I am the listing agent and the buyer isn’t working with an agent and wants to buy my listing).  In this case, I am working for you as a buyer’s agent, and you don’t need to call the listing agent on the sign! That being said; if there is a listing in my inventory I think will work for you, I will definitely show it to you. This is because I am skilled in dual representation, which is representing both buyer and seller (whose wants and needs are opposite from each other). When it all boils down, in the end, the buyer wants the best deal possible, and the seller wants the same thing. If the seller feels like they are being taken advantage of, they will walk away from the deal, and if the buyer feels that they are being taken advantage of, they will walk away. The happy medium is to find the place where both sides are comfortable. This requires skill and loyalty to each side on the part of an agent, not “tipping the hand” so to speak. Not all agents have the ability to keep things separate and ethically and peacefully negotiate the fine line of agreement between a buyer and a seller. In most cases, the listing agents only want what is best for their clients (the sellers).  The same is true for new home tracts, the agents are very helpful, and knowledgeable about their product, but they represent the builder, not you as a buyer. So, even though it is very tempting to go looking at new homes, please don’t go without me!  They won’t allow me to represent you if you go there first without me.

Step #4:

Once we locate a home you want to make an offer on, we will sit down and write the offer. I am enclosing a copy of the contract, for you to review.  I will explain it when we meet.  I am also enclosing the other forms we will complete when we put in an offer on a property. Most of the properties we will be looking at are foreclosures or are in pre-foreclosure. Most of the pre-foreclosure homes are “short sales” which means that the owners are trying to sell them for less than (short of) their mortgage balance. This is a time-consuming process that sometimes works out and sometimes doesn’t, as the banks holding these mortgages are overwhelmed with this practice and the numbers of already foreclosed homes. The process is difficult also because of the many different departments of the bank. These departments don’t seem to communicate with each other, and we have seen a home for sale as a short sale that is under contract and almost made it through the escrow process, days away from belonging to the buyer and the foreclosure department hasn’t stopped the process and the house goes to the foreclosure auction and everyone loses out. The buyer doesn’t get the house (they do get their Earnest Money Deposit back though and have to start over), the bank now owns a home they really don’t want to own, and the seller now has a foreclosure on their record.  We use a short sale disclosure form reviewing all of the risks (although sometimes the risks payoff) and I am including a copy of it in this package. We will definitely get a counter offer on any bank-owned property. If we are putting in an offer on a home that is not bank-owned or a short sale, we may still get a counter-offer from the sellers. We will sit down, review any and all counter offers and look at the terms to make sure we can perform to the contract’s “new” terms and then decide whether or not to accept it.

There is the chance the offer will be rejected. If so, we go out and look again, or revise our offer on the first property.

Once we get an accepted contract from the sellers and/or bank you agree with as well, then I will open escrow with the title company and give them the check for the Earnest Money Deposit.  We will give the appraisal check to your lender and they will order it.

Step #5:

We will need to complete our due diligence (the steps we take to investigate the property to determine if it is suitable for purchase), such as a certified home inspection (I can send you information from a couple of different home inspectors I have worked with), and any other inspections (roof, mold, termite, structural) and the appraisal. Home Inspections cost between $295-$350 depending on the size of the property, there is an additional charge for out-buildings, pools, spas. The purchase agreement dictates how these things are paid for (generally you as a buyer pay for them).  They are paid up front to the inspector(s) at the time of the inspection(s). On a bank owned property, the time frame for completion of all inspections is usually 5 days, but never more than 10 days.

Step #6:

Once we get the results of the inspections, on a sale not owned by a bank or in a short sale situation, we will (if necessary) write up an inspection addendum requesting repairs or compensation (this is negotiable). Upon agreement between the seller and you, we will forward this to title so that it is put together with the original contract. If the property is bank-owned, there are no repair negotiations, the property is being sold “as-is” and the inspection is really for you to learn the property’s condition since there is no one to tell you anything about it. The bank has never seen the property and knows nothing about it. You will be required to sign and notarize a waiver of Nevada Revised Statutes #113 (I have included this form too).  The only rights you are not waiving are the rights for you to cancel the contract based on the results of your certified home inspection. Based on the certified home inspection there is always the option for you to back out of the contract and rescind the purchase agreement. This must be done in writing and within the 5 day due diligence period.

Step #7:

If there is a Home Owners’ Association, it is required by Nevada Law that you review and approve (or disapprove) of the Home Owners’ Association “Re-sale package”, including the Rules & Regulations, CCR’s, budgets, reserve studies, etc. There is a charge for this package, usually $200 or less per association (yes, some homes fall under more than 1 association, although it is common only in master-planned communities). On bank owned properties, you will be bearing the cost of this package, in most cases it is paid up front in order to obtain the package. Some banks agree to reimburse you for this, but not many. There is also a fee to transfer the account to you as the new owner of the property. This is usually no more than $200 per association as well and is paid at closing, not in advance. If there is no HOA, then this step is not applicable.

Step #8:

Now we wait for your lender to get the loan completely approved (through the underwriting department).  They will contact us should they need anything from you in order to process the loan paperwork. As soon as it is through underwriting, the lender will send the loan documents to the title company and we will set an appointment to sign them at the title office.  We will also find out how much money you will need to bring with you for closing costs to the title company (if applicable).  This will need to be in a form of a cashier’s check.

Step #9:

At this time (as we are preparing to go to the title company to sign your buyers’ documents) you will need to make arrangements for the utilities to be placed into your name (we should have a very good idea of what the closing date will be).  I will give you all of the utility company information to make this a little easier. Be aware there may be deposits required by the utility departments.  You will also have to shop for Home Owner Insurance.   The cost will vary depending on the size of the property and its location, the insurance Co, the coverage you want and the area in which the property is located.  The cost can be paid upfront or factored in with your mortgage payment.

Step #10:

The lender will receive the paperwork back from the title company and will review it (anywhere from 1-2 days).  Upon final review and all conditions cleared, they will send the funds to title. If it is a bank-owned property, there is also a 24-72 hour review period for the bank that owns the property to review their settlement statement and approve it (all the bank’s expenses for all costs associated up to the day of closing; property taxes, any liens against the property, HOA dues, any closing costs they are paying on your behalf, their own closing costs, etc). When title receives all funds, if it is before 2pm, they will send the paperwork to the County offices for it to be recorded.  This can now be done electronically with most title companies. Please keep in mind that this may be as long as 5 (maybe even up to 10-14 days on bank-owned property) after you originally signed your paperwork before the property records in your name(s).

Step #11:

As soon as the recording happens; I give you the keys and the place is yours!