Contract For Purchase and Sale of Real Estate
Written document submitted by a buyer or seller to search an agreement on the purchase/sale of a piece of property providing the basis for all that follows until title is transferred and possession taken by the buyer.

Earnest Money Deposit
At the time a written offer is initiated, the earnest money deposit is given as a guarantee that the Buyer will perform under the purchase agreement. The amount is deposited into a third party trust account upon acceptance of the contract and will remain in that account until the time of closing. At closing, the money is applied toward the purchase price of the property. If the contract is not accepted or you do not qualify for a loan, your earnest money will be returned to you providing the sellers are given notice regarding the lender disapproval. A release will need to be signed by all parties to the purchase agreement.

Mortgage Loan Application
Once buyer and seller have agreed on the price and terms of the purchase, the next step is a loan application. An application form is completed with a mortgage loan originator, expediting all necessary paperwork, including ordering a credit report and appraisal for the property. Anyone who will be on the title as new owners should be present. You will be required to pay in advance for your credit report & appraisal, and possibly a mortgage survey. The appraisal is required by the lender to determine that the amount of the loan is justified based on the appraised value of the property value of the property. The mortgage survey is used is used to determine that all improvements are within the property lines, but not used to construct fence, etc. (you may order a staked survey at an additional charge.) At this time, you will receive the lender's "GOOD FAITH" estimate of all costs so there are no surprises at the time of closing.

Points and Discount Points
Points fluctuate because the mortgage market is much like the stock market, which rises and falls based on supply and demand. The mortgage market is an integral part of the national money market serving all kinds of capital and credit needs. If rates (yields) mortgage loans are lower than other investments such as stocks or bonds, the funds will be drawn away from the mortgage market. When there is a heavy demand upon the money market because of business needs, military requirements or other government borrowing, the result is that money for home mortgage becomes scarce and more expensive.

A borrower can lower the interest rate to be charged over the life of the loan by paying "points" at the time of closing. Each point is equal to 1% of the mortgage amount. Different mortgage lenders have various programs available to fit almost every buyers need.

Title Insurance
When property is sold or refinanced, the lender and buyer need a preliminary title commitment that will indicate what recorded liens, encumbrances and easements are currently in effect on the property and indicated the vested owner of record and any restriction on use of the subject property. Title Insurance is required on all property in Kansas and the cost is usually split between Buyer and Seller. In addition, the buyer is also responsible for the lender policy and charges are included in the closing costs. When the sale is final, the title insurance company will record the necessary documents and will issue a title insurance policy to the new Buyer and the lender showing marketable title to the property.

Mortgage Insurance
Insurance that covers part of the lender's risk on high-ratio loan to value loans. It protects the lender from loss due to payment default of the borrower. With this insurance protection, the lender is willing to make a larger loan, thus reducing your down payment. This type of insurance should not be confused with mortgage life, credit life, or disability insurance designed to pay off a mortgage in the event of physical disability or death of the borrower.

Homeowner Insurance
Insurance protection for you and the lender against loss due to due to fire, windstorm and natural hazards. Lenders usually require the first year premium plus two months to be paid in advance. In some instances the lender may also require flood insurance at an additional charge.

Home Inspection
This is advised when purchasing a new or pre-owned home. Included in is are: appliances, plumbing systems, electrical systems, heating, cooling & ventilating systems, bath & kitchen fixtures, crawl spaces, basements, garages, roofs, attics, and general condition of the home. Remember this is not a guarantee of the condition of the property, but it does help determine if there are existing problems. Cost vary depending on size of home

Structural Inspection or Engineer's Report
This inspection will help to determine the condition of the structure and of the foundation to defects, if any, that may need to be corrected. Cost is similar to a home inspection. Buyers will first have a home inspection, which will help determine if additional inspections are necessary.

Radon Inspection
Buyers may want to have the property tested for radon a potentially harmful radioactive gas emitted from the ground. It seeps into a home through foundation cracks or crevices and can be determined by a qualified inspection.

Termite Inspection
Purchased by Buyer or Seller, this inspection should be done by a licensed termite treatment company, and is required by lending institutions prior to settlement.

Lead Paint
If the property you intend to purchase was built before 1978, it is mandatory that you be informed that it may contain lead paint. Because lead paint can cause health problems for people, especially young children, you may want to have the property tested for lead paint.

Home Warranty Policy
A policy that will protect against many repairs or replacement of certain appliances, heating, air conditioning, plumbing or electrical systems that were not pre-existing conditions. Carefully read the application and policy so you know what is covered and to the extent each item is covered. Purchased by either Buyer or Seller.

Basements
While basements provide definite benefits to homeowners, all Buyers should be aware that,
A basement can develop unexpected problems overnight, due to changes in wetness, temperature, grade of soil, gutter/downspout condition, which can affect basement dryness and structural conditions.

Prior to Closing
Mark Deel will review with you all that is required for closing, including making sure the homeowners insurance is in place, going over all closing cost and verifying lender requirements are completed.

In addition, Mark will arrange for a final "walk-through" of the property for confirmation of condition.

Closing Procedure
Payment should be in a form of a cashier's check or certified funds made out to the closing company. At this time, arrangements for the keys and possession will be made. Closing are held at a title company or lender institution and those in attendance are Buyer, Seller and their real estate Associates.