Posted by Cheryl/Fl on 4/21/05 3:26pm
Msg #33167

Difference in Refi vs. Purchase

I've received 3 calls this past week wanting me to do a purchase. When I told them I hadn't done one before, they decided to pass with a notary who has. What is the difference in the two loans. Thanks for your help in advance.

Reply by anon on 4/21/05 3:29pm
Msg #33168

GEEEEZUS!!

Reply by Anonymous on 4/21/05 3:34pm
Msg #33169

how DARE you post such a basic question here!! Have you searched every single question in here, back to before time began? Have you wasted hour upon hour searching the internet, and reading "possibly related" items, only to find that they were not REALLY what you needed? Have you circled the globe in search of the answer?? Have you called the president?? Have you, MISS CHERYL, kissed the feet of every old member in this forum??? And, just because you might be a paying member like anyone else, have you asked PERMISSION of those old members who think they OWN this site??? If not, I suggest you hop to it, young lady! Come on! NOW!

Reply by PA Notary on 4/21/05 3:59pm
Msg #33171

Among other things, you will deal with buyers and sellers, and possibly Real Estate salespeople , and sometimes have attorney(s) present. The HUD is a 2 page document that is literally a balance sheet, showing where the seller's and buyer's money went. Also to be considered is the fact that there is a deed involved to transfer ownership....funds to be collected from the buyer for down pmt and/or closing costs....pest inspection...final sewer and water....all these things are variable depending on what state and county the closing takes place in. To be sure, one would be wise to make a list of items to be collected....this info should be available from the title co. prior to closing. These are some of the reasons purchases are best left to more experienced notaries. I could tell of some REAL nightmare closings I have done....but, then again when you throw realtors, attorneys and sellers into the mix, it makes for an interesting transaction.

I'm sure others on this board have something to add. LOL

Reply by dcinnv on 4/21/05 6:51pm
Msg #33229

Why don't you go take a valium, feel free not to comment, if you can't say anything nice be quiet, perhaps your parents didn't bother to teach you common courtesy!!

Reply by Simone E. Lewis on 4/22/05 4:40pm
Msg #33397

Re: Anonymous??

You probably did not know this answer, therefore you mouthed-off behind that Anonymous facade. how DARE you post such a basic answer here! Thank you Paul and PA Notary. We appreciate your expertise.

Reply by PAW_Fl on 4/21/05 5:05pm
Msg #33193

Disregarding the static in some of the posts that followed your question, purchases can be very intimidating. There will be two factions at the table: sellers and buyers. There may also be many players from both factions: the principals, RE agents, attorneys, brokers, closing agents and worse of all, know-it-all family members who are looking out the best interest of the principals.

Sometimes, purchases as well thought out, everybody being informed and up-to-speed on the "costs and fees" and it goes without a hitch. Then there are the ones where the numbers are just plain wrong, or at least seems wrong to either the seller or the buyer. And you, the poor signing agent with absolutely no power to fix anything, are stuck in the middle because it's "your show".

So, experience plays a big part in purchases. However, you need to get it somewhere. I suggest that you may want to visit a local title company and ask if you can watch and learn at a closing. (In Florida, which is a table funding state, what you are presiding over is often considered a closing, including disbursing of funds at the table!) If you know a Real Estate agent that goes to their closings (which, imo, they should), you may be able to tag along with them too.

Docs at a purchase, if the buyer is financing, will be similar to what you're already aware of. There will probably be some additional ones as well, depending on the county. The seller will also have a handful of docs to be signed, depending on how many have been completed prior to the closing.

The HUD is probably the most critical document that will be placed on the table when everyone is present. Since it lists all the costs of the closing, including all fees to be paid by the seller and buyer, as well as disbursements that must be completed at the table, including the funding of the loan (if the buyers are financing) and receipt of the addition funds due at closing (if any) to match the payoff to the seller, which may or may not be made out to the seller's current mortgagor(s).

The second most important piece of paper will be the Warranty Deed which will transfer the ownership of the property from the seller to the buyer. Typically, only the seller (GRANTOR) needs to sign this, but it is a good practice (and some title companies do this) to verify the names on the deed of the GRANTEE(s) to match their current IDs. In FL, the deed MUST be witnessed by two witnesses not directly involved in the transaction, one of which can be the notary.

Again, depending on what has previously transpired, the sellers "stack" will be very small. If the buyers are financing the purchase, it is advisable to complete the sellers transactions and documents completely, after the HUD is signed by all parties involved. Then start the buyers documents with property related documents, such as final inspection report sign offs, conveyance of warranties, if any, etc. Don't go into the financing aspect right away. After the property stuff is done, you can excuse the sellers from the table. Then you can do the financial stuff with the buyer/borrower. These docs will be familiar already if you have done any refinancing of first mortgages (excluding HELOCs).

Hopefully that'll give you a taste of an "existing" home purchase. New home purchases, or buyers only purchases are a breeze, because you don't have to worry about the seller, and the buyer is usually in a better frame of mind and actually wants to complete the transaction. Again, if they are financing, you will find the same stack of documents that you find in a refi. But, one thing you won't find is an RTC. Purchases are "done deals" once the signatures are applied. It is commitment at the table. So you may have to afford the buyers some extra time in reviewing their terms and conditions of the sale and financing.

Reply by Becky on 4/21/05 5:12pm
Msg #33195

Thank you Cheryl for posting the question. I am sure there are many NSA's here who are not familiar with purchases. And thanks to those who responded for the benefit of others.

Reply by BrendaTX on 4/21/05 5:25pm
Msg #33201

Paul: Thank you.

This is a "Print 'er."

Reply by PAW_Fl on 4/21/05 5:29pm
Msg #33202

I forgot to do the word count to see where I "stand" next to the tomes of BrendaTX. Thanks for the kind words.

Reply by Linda/NJ on 4/21/05 8:21pm
Msg #33248

Thank you Paul, for taking the time to print all that information. Brenda is right I'm printing now! Linda.

Reply by anon on 4/22/05 9:06am
Msg #33315

I'm printing too...to use as TP

Reply by BrendaTx on 4/22/05 9:15am
Msg #33318

Anon: Good example of mean spirited. n/m

Reply by anon on 4/22/05 9:47am
Msg #33320

Re: Anon: Good example of mean spirited. n/m

thats not proper grammar...should be "mean spiritedness"...

Reply by BrendaTX on 4/22/05 10:08am
Msg #33321

Anon: Thank you.

Grammar/punctuation help is always appreciated, especially by me.

Reply by Art_MD on 4/22/05 9:12am
Msg #33317

Re: Difference in Refi vs. Purchase - seller's POA

At a lot of purchase settlements, the seller has given the real estate agent a POA. Be sure the documents are signed properly as a POA signature.

Art