#Estate planning checklist maryland series

Recent pay stubs and contact information for each borrower’s employer.Up to two years of tax returns, released to the lender via an authorization submitted by the buyer using IRS form 4506-T.

This can also include documentation of rent payments. Several months of statements for any outstanding loans, lines of credit, or other liabilities.Several months of statements for each bank account a borrower holds (including any investment accounts).These vary by situation, but the most commonly requested documents are:

#Estate planning checklist maryland series

The buyer sends a series of personal financial disclosures to their lender. Before the buyer is ready to write an offer, a pre-approval with a lender should be acquired.The final costs are likely to deviate from this estimate. Within 3 days, the lender sends a “Good Faith Estimate,” or GFE, to the buyer that is a breakdown of estimated closing costs.See a sample Uniform Residential Loan Application used in Maryland. A buyer submits a loan application to their lender, either directly or through a mortgage broker.The following is the general process in Maryland: It’s best to start as early as possible and be ready to produce lots of documentation. The buyer may also negotiate for a home warranty that covers major appliances from failure for a time period after the sale, typically a year.įor those borrowing to purchase their home, the mortgage process is usually the most stressful and opaque part of the transaction.All of this, of course, is done in writing. In response, the buyer can continue to negotiate, accept the seller’s position, or walk away. Sellers have three options: agree to all of the buyers’s requests, offer a modified solution back to the buyer, or decline to make any amends. Or, they can ask the seller for repair work, closing cost credits, or a reduction in the sale price due to flaws that were uncovered. Based on the outcome of inspections, buyers may elect to walk away if something material is found.

A termite inspection is also often performed in Maryland. The types of inspections vary by property type and situation (and locale), but in Maryland, a home inspector generally inspects the home first, and other inspections and tests can be ordered if revealed to be necessary by the initial inspection. Each of these inspections must be completed by a certain date, which is called an inspection contingency date.

The buyer elects to perform inspections on the property if agreed upon in the contract (in Maryland, there is generally a separate addendum that covers a series of possible inspections).

Sellers may see making these disclosures as beneficial to themselves, and believe that buyers will build these pre-disclosed facts into the contract price (and thus sellers may be reluctant to provide any credits for these defects). These disclosures vary based on property type, but often include things like known flaws with the property, prior improvements or repairs, and potential environmental hazards.Ī standardized disclosure form called the Maryland Residential Property Disclosure Statement is generally provided by the seller as an addendum to the contract and must be signed by both buyer and seller.

The buyer reviews and signs off on any disclosures.

The signed contract is sent to a closing attorney or title company to begin preparation of all work related to transferring and changing the title to the new owners and preparing the title commitment.

Concurrently, a deposit, or earnest money, is paid to an escrow agent, an attorney, or broker (never to the seller directly).

An offer is accepted by the seller and a contract is signed and accepted.

These are the initial tasks once a buyer is in contract, and are most often done in parallel to Part 2: The mortgage process: Step by Step Part 1: Disclosures, inspections, and title

Maryland has its own environmental features that influence which inspections get performed, such as termite inspections.

In Maryland, buyer and seller often consummate the transaction at the same closing (or ‘settlement’) table.

Maryland’s homebuying process is similar to other states where an attorney or representative from a title company is used to consummate the transaction and prepare all the closing documents.