process for consumers (Not investors)

This whole process will take between 3-4 weeks depending on how quickly we can get the appraisal done, if you want a title policy and if you want an inspection. Below is the information that takes you through the process.

Application

Set up an account and fill out the "Long Form" not Short.

Proof of Income and ID

As soon as possible

- Provide 2 forms of ID (see the list of acceptable forms of ID below).   

- Provide proof of income (This can be recent W2's, pay stubs, 1040's)

- Provide proof of employment (Something that shows who you work for and is current.  A recent pay stub works well)

The proof of income needs to clearly show how much money you make per year.

Disclosures

I will send the following disclosures to you quickly after your application. I will send them via docusign to your email and you can sign them on your phone or computer.

1) Electronic signature disclosure.

2) “Notice concerning extensions of credit.” 

3) Wrap lien disclosure form

4) Disclosure packet.  By signing you are not agreeing to anything other than that you have received these disclosures. The Loan Estimate page will have info about all the loan/payment terms.

Contract (Skip if Sage is not the seller)

I will send you the purchase contract for electronic signature via docusign.  It is very easy to sign on computer or phone and when the contract has been signed by both of us it automatically sends a copy by email to both of us.  This is what locks the home up for you until we close and you move in so that I cannot sell the house to anyone else.  Before I can write this contract I will need the following info:

- Emails for everyone that will be on the contract.

- You will need to decide if you want title insurance or an inspection.  See details about both below.

- When is the earliest you can close and move in?

Note that the principal and interest given on the contract is set and cannot change. Taxes and insurance can change from year to year. Taxes are controlled by the county and the insurance policy is controlled by you.  You pick your insurance company. I just escrow the taxes and insurance monthly and then pay yearly on your behalf. The payment given to you at this point including tax and insurance is an estimate of what the total payment will be and will not be known exactly until you have selected an insurance company.

Earnest Money (Skip if Sage is not the seller)

If you do NOT get a title policy, then you will deliver the earnest money, within 3 days of the executed contract, to Cole Title. The address is 709 N Center Bonham, Tx 75418. You can do a cashier’s check made out to “Law Office of Robertson & Simpson, PLLC” or you can wire them money. Contact 903 583 3937 for wiring instructions and make sure to get the instructions for the law office and not the title company.

If you DO a title policy, then make the payment to Cole Title Company instead. The address is the same. The wiring instructions will be different. Contact the same number for wiring instructions and make sure to get the instructions for the title company, not the law office.

Either option: If you do an inspection, you will also add the option fee to the earnest money and both will be credited to you at closing when you purchase the house. These amount are shown on the contract’s second page.

· Keep in mind that if you back out of the purchase you forfeit the earnest money. If you are not approved for the loan to purchase then you will get the earnest money back.

Appraisal

I will order an appraisal once the earnest money deposit has been received. If you have an option period then it would be ordered after the option period has ended.

Sellers Disclosure (Skip if Sage is not the seller)

I will send you the “Sellers Disclosure” within 5 days, in most cases, of the executed contract. This gives information about the condition of the house. I will send this for you to docusign. You are signing that you have received it.

Insurance 

Start shopping for insurance about a week or two before we close.  Here is what to do:

A. Policy needs to be a dwelling policy with min coverage in the amount of the loan.  

B. I don’t require you to have liability or personal property so that is up to you.  

C. Tell the insurance company that Open Door Loan Servicing, located at 457 Laurence Dr. #521 Heath, Tx 75032, Phone No. (972) 836-9965 is "2nd mortgagee" and my bank is “first mortgagee”.  Open Door is the servicing company I hire to handle the servicing duties which include escrowing the insurance and making insurance payments. The title company or myself will send the initial payment to the insurance company but the servicer will take it from there. I will put the bank info on the initial disclosures I send out. You can also have the insurance company email me. Make sure to tell them that Open Door Loan Servicing will be the one making the yearly payments. The title company will make the initial payment from the closing costs.

D. Have the company email me (sagegroveinvestments@gmail.com) and the servicer (info@opendoorls.com ) proof of insurance before we close.  

You get to pick the insurance provider but if you need some examples of what others have used with me then see the below list.  I just need the proof of insurance before we can close.  I estimate the insurance amount which is included in the payment quoted to you.  If your actual insurance costs you more than the estimate then your monthly payment would go up by the difference over estimate.  Most people can get a dwelling policy at this estimate but if you add liability, extra coverage, or personal property then it may go up.  The price of your insurance will also depend on your credit, deductible you choose, which company you go with, and possibly some other factors.

Closing Disclosure 

I will send you the “Closing Statement” via docusign. This will be 4 business days in advance of closing or more.

Utilities 

Call to schedule utilities (water, electricity, gas) to switch to your name once we have a hard close date. Just do this within a week of closing. Wait until we get close to closing.

Closing Docs 

I will send you closing docs to review a day ahead of closing.  

Closing (Skip if Sage is not the seller)

We will close at a title company. The title company acts as a middleman. Generally I use Cole Title for this but we will use what is in our sales contract. Generally you will be charged at closing for

· You will meet at the title company to sign the docs. Schedule this with Lauren Trammell at Cole Title 903 583 3937. Bring your non expired ID for the notary. Everyone on the loan needs to be there.

· You can do a cashier’s check made out to “Law Office of Robertson & Simpson, PLLC” or you can wire them money. Contact 903 583 3937 for wiring instructions and make sure to get the instructions for the law office and not the title company.

· Make sure the bank signs the cashiers check.  

· I will give you the combo to the lock box so you can get the key(s).  

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Title insurance info and inspection info

Title Insurance: If you are unfamiliar with title insurance check out this website HERE to help you make a decision on whether you want title insurance or not. Click the link HERE for your cost to get a title policy (title insurance). Just enter the sales price in the top section. There is also an option to forgo the title policy and get an Ownership and Encumbrance Report. This is usually about $200. The title company would research to make sure there are no liens. They would not provide insurance under this option.

Inspection: It is your option if you would like to do an inspection or not. An inspection may cost you $500-$800 for the full inspection with report. You may be able to get it cheaper if you can get an inspector to skip the report and just check for major issues and provide that info to you. I can give you 7 days if you wish to get this done. During this time you are able to back out of the contract and you only forfeit your “option money”. The “option money” fee for this is $200 to me and that is nonrefundable if you back out of the deal. If you purchase the house it goes towards the down payment.