MREG’s Guide to Buying
Finding Your Next Home
Get started with MREG by contacting one of agents to talk about your goals and dreams, or start by searching for homes below.
Your agent will guide you personally through home showings and communicate with sellers’ agents. When the time comes, we’ll help you in the crucial steps of deciding what to offer for the home you’d like to buy.
- Get Pre-Approved
- Meet with your MREG Buyer’s Agent
- Start the Home Search
- Make an Offer/Get Offer Accepted
- Provide Lender with All Required Documents
- Meet with Home Inspector/Negotiate Home Inspection Repairs Check-In with Lender to Order Appraisal
- Get a Clear to Close from the Lender
- Call Utility Companies
- Final Walkthrough
- Close on Your New Home
ONCE YOUR OFFER IS ACCEPTED
You will receive a welcome email from the MREG Administrative Team that includes a copy of your Purchase Agreement and details on your Home Inspection and Closing.
You will receive calendar invites for your Home Inspection Walk-Through, Final Walk-Through and Closing. The final walk-through is generally scheduled one hour prior to closing unless specifically requested otherwise.
The first activity that will come your way is the Home Inspection; you will also see this referred to as a General Inspection. The inspection is your opportunity to see what the state of the home is and provides a discovery period for repairs. The Home Inspection must be done within 7 – 10 days of the final Purchase Agreement in order for you to maintain your legal option to be released from the Purchase Agreement due to repairs/issues with the home that can’t be resolved between you and the seller. If the inspection is not done within the time frame, the seller has no legal liability to work with you on requested repairs.
HOME INSPECTION PROCESS
• Andy Smith with National Property Inspection (NPI) does the majority of our home inspections.
• You, as the buyer, are responsible for paying for your inspection, and payment is due at the time of the walk-through.
• The inspection will take place three hours prior to your Home Inspection Walk-Through. Andy will go through and do a thorough inspection
of the home and outbuildings. The hour of your walk-through will be an overview of Andy’s report, covering any issues regarding the home and answering any questions you may have.
• Next, Andy will email you an Inspection Summary. Your MREG Buyer’s Agent will contact you to discuss the inspection results in order to prepare a negotiation for necessary repairs, if needed.
• Your MREG Buyer’s Agent will prepare an Inspection Addendum officially requesting the repairs from the seller. The seller will have the option to accept your request, counter back with a reduced list of repairs, or offer no repairs at all. If countered, the addendum will come back to you, the buyer, and you have the option to accept, counter back to the seller, or request to be released from the Purchase Agreement.
• The termite inspection occurs without any action on your part; it is scheduled by the closing company and is included in the closing costs. As the buyer, you will only be notified if there is an issue.
• Termites are fairly uncommon. We only see them in about 1% of the properties that are inspected and, according to the Purchase Agreement, the seller will cover 2% of the purchase price if termites are found on the property.
After all parties have agreed upon the repairs, you will shift your focus to the lender process. The lender process begins immediately upon signing the final copy of your Purchase Agreement and continues through Closing Day.
Pre-Approval & Initial Loan Application
Make formal loan application and provide documentation to your lender. You should also discuss locking in an interest rate.
Complete Any Required Disclosure
Review and ask any questions you may have. Sign and return so that your loan can move to the Loan Processor.
The Loan Processor reviews your application and may request additional documentation that will be needed for your file. They will order and gather the appraisal, title work, flood certificate, tax transcripts, and verify your employment. Please make sure to have pay stubs and bank statements accessible in case more documentation is required.
The Underwriter reviews the entire file to make sure that it complies with Loan Investor’s guidelines. Additional documentation may be requested before a formal decision is made. Upon approval, any final conditions must be satisfied before the loan can move into Closing.
The Closing Team will provide official instructions and the loan documents to the Title Company. You’ll need a wire transfer for any funds required at Closing. The loan fund and monies are dispersed when all parties have signed and the acceptable documentation is returned to the Closing Team.
One week prior to closing
Many can be done online, or by calling customer service.
MUD (gas, water)
402-554-6666 / 800-732-5864
402-536-4131 / 877-536-4131
Black Hills Energy (electric)
402-933-3000 / 866-961-0027
Within 3 days of your Closing
You will be provided with the total cash needed to close. Make sure you transfer any funds required at closing.
Unless requested otherwise, your Final Walk-Through will take place one hour before Closing. This is generally a quick tour of the property to ensure that all agreed-upon repair requests were made and that everything is in working order.
A typical Closing takes between thirty and sixty minutes. Plan to spend your time signing papers, going over documents, and asking any final questions you might have. This is the time where you will receive the keys to your new home!
Key Home-Buying Terminology
Adjustable Rate Mortgage (ARM): A mortgage that provides for periodic changes in the interest rate, based on changing market conditions.
Amortize: To liquidate or extinguish (a mortgage, debt, or other obligation), especially by periodic payments to the creditor or to a sinking fund, to write off a cost of (an asset) gradually.
APR (Annual Percentage Rate): The annual rate of interest; the total interest to be paid in a year divided by the balance due.
Appraisal: The act of estimating or judging the nature or value of something. An estimate of value, as for sale, assessment, or taxation; valuation.
Closing: The final step in property purchase where the title is transferred from the seller to the buyer. At Closing, the seller receives payment for the property, also known as settlement.
Closing Costs: Fees charged to a purchaser by a bank, lawyer, etc., for services related to a sale, a title search, an appraisal, etc. Any expenses over the purchase price of a house, land, etc., that is paid by the purchaser or seller at the completion of the sale.
Closing Disclosure: A five-page form that provides final details about the mortgage loan selected. It will be set prior to Closing and the initial document must be signed 72 business hours before that Closing. It includes the loan terms, projected monthly payments, and how much the purchaser will pay in fees and other costs to get the mortgage (closing costs).
Contingency: A clause in a purchase contract outlining conditions that must be fulfilled before the contract is executed. Both buyer and/or seller may include contingencies in a contract, but both parties must accept the contingency.
Conventional Loan: A private sector loan, one that is not guaranteed or insured by the U.S. Government.
Deed: A writing or document executed under seal and delivered to effect a conveyance, especially of real estate.
Disclosures: The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems. Full disclosure usually refers to the responsibility of the seller to voluntarily provide all known information about the property. A seller found to have knowingly lied about a defect may face legal penalties.
Earnest Money: Money given by a buyer to a seller to bind a contract.
Easement: A right held by one property owner to make use of the land of another for a limited purpose, as right of passage.
Escrow: A contract, deed, bond, or other written agreement deposited with a third party, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition.
Fannie Mae (FNMA): A federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential home buyers.
Federal Housing Administration (FHA): FHA provides mortgage insurance on loans made by FHA-approved lender throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals.
Fixed-Rate Mortgage: A home mortgage for which equal monthly payments of interest and principal are paid over the life of the loan, usually for a term of thirty years.
Freddie Mac Federal Home Loan Mortgage Corporation (FHLM): A federally-chartered corporation that proposes residential mortgages, secures them, and sells them to investors; this provides lenders with funds for new home buyers.
Lien: The legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of on obligation.
Origination Fee: A fee charged by a lender for evaluating and processing a loan application, usually a percentage of the face value of the loan.
PITI: Principal, interest, taxes, and insurance.
Promissory Note: A written promise to pay a specified sum of money to a designated person, or to the bearer of the note, at a fixed time or
Rate Lock: A commitment by a lender to a borrower guaranteeing a specific interest rate over a period of time at a set cost.
Title: In property law, a title is a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document, such as a deed, that serves as evidence of ownership.
Title Insurance: Insurance protecting the owner or mortgagee of real estate from lawsuits or claims arising from a defective title.
Underwriting: The process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower’s credit history and a judgment of the property value.