Home61 Handbook
Welcome to Chapter 2 of the Home61 Handbook! In this chapter, you will find pertinent information and tutorials that will aid you in your Home61 Journey. This chapter ranges from technology to general information on real estate!
Escrows and Closings
All Escrows are held by a Nu World Title office of your choice.
All Closings are handled by Carlos Alger.
Escrow Drop-off: Only Cashiers Check or Money Order are accepted at the Nu World office that you have chosen in our BO escrow request.
Escrow Processing: 3–5 days but can take longer depending on means of deposit.
Escrow Disbursement: Once title validates escrow by sending an escrow letter, Carlos will create and send a disbursement letter to both the listing agent and tenant through Hello Sign .
Pickup of Escrow walkthrough checks: Once title received disbursement letter through our BO they will take 2 business days to process the checks, and notify you when they are ready for pick up at the Nu World title that you have chosen.
How To Use The Back Office
You must login to the FO first. Once you do so you will be automatically logged into the BO.
Back Office (BO)
Agent Menu: Dashboard (Detail, Drop, ETA), Calendar, Recommend, Hellosign, Escrow, Closing
Catalog Menu: Search for listings, View Home61 single line, and thumbnail
Toolbox Menu: Access blank contracts/addendums, education tools, etc.
Front Office (FO):
Mix Mode/Map, Set email alert, My Homes, Select client to send recommendations through BO. Each MLS listing has its own page and each page has 4 internal pages.
Home61 Account Set Up
Step 1. Resetting your password
*****INSERT VIDEO TUTORIAL*****
Step 2. Logging into the Back Office
Step 3. Email signature and finishing up your profile!
Step 4. Using your Google integrated BO Calendar
Step 4. Listening to Your Welcome Calls
Step 5. Sending Recommendations
Step 6. Adding clients to the Back Office
Step 7. How to Create a Smart (Hellosign) Contract
Escrow
- Bank wire is preferred as it is one business day
- Money order and Cashier’s check will take 2 business days after drop off at Nu-World title office.
- If your client sends/gives more money than expected please submit a new escrow request with the additional amount.
Disbursement
When you have an accepted closing or your client wants to take out their money from escrow.
- Closing Accepted for lease
- Always ensure your Listing agents email and name is correct since Home61 receives what is on the MLS.
- Carlos will initiate disbursement email sent from Hellosign
- Agent copied on email
- Agent must call Listing agent and have disbursement signed
- If LA wants disbursement different please let Carlos know to correct and resend.
- Once LA signs disbursement the checks will start being processed by Nu World Title
- Our BO will notify the agent within two business days of receiving a disbursement letter for check pickup.
- Agent picks up the checks and brings them to the Home61 Office
Submitting a Closing in the Back Office
Walkthrough
Items needed for your walkthrough!
- Walkthrough form
- Escrow Checks
- Client Checks
What fees can you expect at closing?
Closing costs vary widely based on where you live, the property you buy, and the type of loan you choose. Typically, closing costs will be about 2% of the closing price but can vary depending on the area and property. The list below is inclusive of fees you may see, but it’s not likely that your loan will include all of the fees listed here:
Application Fee
- Covers the cost for the lender to process your application. Before submitting an application, ask your lender what the fee covers. It can often include things like a credit check for your credit score or appraisal as well. Not all lenders charge an application fee, and it can often be negotiated.
Appraisal
- Paid to the appraisal company to confirm the fair market value of the home.
Attorney Fee
- Pays for an attorney to review the closing documents on behalf of the buyer or the lender. This is not required in all states.
Closing Fee or Escrow Fee
- Paid to the title company, escrow company, real estate company, or attorney for conducting the closing. The title company or escrow oversees the closing as an independent party in your home purchase. Some states require a real estate attorney to be present at every closing.
Courier Fee
- Covers the cost of transporting documents to complete the loan transaction as quickly as possible.
Credit Report
- A tri-merge credit report is pulled to get your credit history and score. Your credit score plays a big role in determining the interest rate you’ll get on your loan.
Escrow Deposit for Property Taxes & Mortgage Insurance
- Often you are asked to put down two months of property tax and mortgage insurance payments at closing.
FHA Upfront Mortgage Insurance Premium (UPMIP)
- If you have an FHA loan, you’ll be required to pay the UPMIP of 1.75% of the base loan amount. You are also able to roll this into the cost of the loan if you prefer.
Flood Determination or Life of Loan Coverage
- Paid to a third party to determine if the property is located in a flood zone. If the property is found to be located within a flood zone, you will need to buy flood insurance. The insurance, of course, is paid separately.
Home Inspection
- You will likely get your own home inspection to verify the condition of a property and to check for home repairs that may be needed before closing.
Homeowners Association Transfer Fees
- The seller will pay for this transfer which will show that the dues are paid current, what the dues are, a copy of the association financial statements, minutes and notices. The buyer should review these documents to determine if the association has enough reserves in place to avert future special assessments, check to see if there are special assessments, legal action, or any other items that might be of concern. Also included will be Association by-laws, rules and regulations and CC & Rs.
Homeowners’ Insurance
- Covers possible damages to your home. Your first year’s insurance is often paid at closing.
Lender’s Policy Title Insurance
- Insurance to assure the lender that you own the home and the lender’s mortgage is a valid lien. It protects the lender if there is a problem with the title. Similar to the title search, but always a separate line item.
Lead-Based Paint Inspection
- Covers the cost of evaluating lead-based paint risk.
Loan Discount Points
- “Points” are prepaid interest. One point is one percent of your loan amount. This is a lump-sum payment that lowers your monthly payment for the life of your loan.
Owner’s Policy Title Insurance
- An insurance policy that protects you in the event someone challenges your ownership of the home. It is usually optional.
Origination Fee
- Covers the lender’s administrative costs. It’s usually about 1% of the total loan but you can sometimes find mortgages with no origination fee.
Pest Inspection
- Covers the cost to inspect for termites or dry rot, which is required in some states and required for government loans. Repairs can get expensive if evidence of termites, dry rot or other wood damage is found.
Prepaid Interest
- Most lenders will ask you to prepay any interest that will accrue between closing and the date of your first mortgage payment.
Private Mortgage Insurance (PMI)
- If you’re making a down payment that’s less than 20% of the home’s purchase price, chances are you’ll be required to pay PMI. If so, you may need to pay the first month’s PMI payment at closing.
Property Tax
- Typically, lenders will want any taxes due within 60 days of purchase by the loan servicer to be paid at closing.
Recording Fees
- Charged by your local recording office, usually city or county, for the recording of public land records.
Survey Fee
- Goes to a survey company to verify all property lines and things like shared fences on the property. This is not required in all states.
Title Company Title Search or Exam Fee
- Paid to the title company for doing a thorough search of the property’s records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.
Transfer Taxes
- Tax paid when the title passes from seller to buyer.
Underwriting Fee
- Goes to your lender, covering the cost of researching whether or not to approve you for the loan.
VA Funding Fee
- If you have a VA loan, you may be required to pay a VA funding fee at closing (or you can roll this fee into the cost of the loan if you prefer). This is a percentage of the loan amount that the VA assesses to fund the VA home loan program, however, some borrowers are exempt from this fee. The percentage depends on your type of service and the amount of your down payment. Here is a breakdown of the cost of the VA funding fee and a complete list of allowed fees for VA loans.
Contingency Dates
As a buyers agent, you are responsible for all dates on the contract and not the MLO or Closing Manager. As such, it’s super important to understand the contingency dates on the As-Is Contract and be on top of each action item. Below, we list out all the contingency dates you need to know and a link to a Google Spreadsheet where you can calculate each important date based on the contract you’re working on.
As is contracted timeline
Important Dates
Effective Date
- The latest date that both parties executed (sign) the As-Is Contract is your effective date.
Closing Date
- The date at which the closing occurs
Home Inspection Date
- Final day for Buyer’s Right To Cancel due to any reason
Loan Commitment Date
- The date you need to send a Loan Approval Letter to the listing agent
Deposit Dates
Initial Deposits
- The amount required for escrow to execute an As-Is Contract.
2nd Deposit (if applicable)
- Normally for high-end properties, this is the second half of a large deposit amount.
Financing Contingency Dates
Loan Financing Application Date
- The date by which you need to apply for a loan
Loan Commitment Date
- The date you need to send a Loan Approval Letter to the listing agent
Other Dates
Title Evidence & Insurance
- Title and Insurance need to be presented no later than 10 days before closing
Survey (if applicable)
- Surveys (normally part of Title) must be presented no later than 10 days before closing.
Tips
- Never waive Home61 Inspections for financing deals.
- Extensions: For extensions, always ask for extensions before the deadlines!
- Stay on top of the MLO: Make sure you have constant contact with your MLO and relay updates and important information to your clients and the closing manager.
- Commitment letter: Follow up with the MLO for this.
- Titles & Surveys: Follow up with the Closing Agent (In the title company) for this.
Who is Home61’s preferred mortgage lender?
Get from Carlos
That is all for Chapter 2: Tutorials and Guides!
Next step:
Follow the link below to go to Chapter 3 of the Home61 Handbook. In Chapter 3 you will find helpful sales tips and tricks to navigate the real estate market!
