After you have negotiated an agreed price on a house that meets the Bryn Mawr College Plan eligibility requirements, you should expect the following sequence of steps before final settlement. You may want to select an attorney to help you through the process until settlement; however, many people find that their realtor is able to give whatever assistance is needed, and there is no necessity to incur legal fees.
1. Agreement of Sale
A deposit is placed on the house, and the buyer and the seller sign an Agreement of Sale, which is a contract spelling out the specific terms and conditions of the sale.
- It should be contingent upon your ability to obtain a Bryn Mawr College mortgage.
- It can also be contingent on a professional inspection of the house (at buyer’s expense).
- It should require the seller to pay for a termite inspection, removal of the infestation, if needed, and repair of any damage as necessary. You should get a written report at settlement indicating that the property is free of active termite infestation.
The Agreement of Sale should also specify in writing all agreements about items such as light fixtures, drapery rods, washers, dryers, refrigerators, etc., which are not permanently attached to the house.
2. Mortgage Application
A copy of the Bryn Mawr College Mortgage Plan can be obtained from the web page of the Chief Administrative Officer. It lists the terms and conditions of the Plan and the procedures to be followed in applying for the mortgage. The application form is available from the webpage of the Chief Administrative Officer and should be completed and returned to that office.
- Approval is based on information supplied by a third- party mortgage processer including an appraisal of the property and a credit report. Their recommendation is subject to approval by the Treasurer’s Office.
- The time between application and final approval usually is approximately two weeks. The bank then requests at least two weeks to prepare the mortgage and other documents necessary for settlement. The total time involved, therefore, between application and settlement is usually six weeks, and could be as many as eight weeks.
3. Approval of Mortgage
After the mortgage is approved, you will receive a “loan commitment letter” from the College, stating the mortgage amount, interest rate and length of the loan. It will also advise whatever you will need to bring to settlement in the way of documents and payment of interest.
4. Disclosure Statement
You should receive from your realtor a Disclosure Statement, giving closing costs and other costs that may be involved with the purchase, as well as all interest rates.
5. Title Search and Insurance
Your realtor or attorney can arrange for a title search and title insurance, required by Bryn Mawr College (or any other lender) to protect its interests. The purpose of the title search, which is a review of records at the local courthouse, is to make sure that the seller of the house is the legal owner and that there are no outstanding liens, other claims, or overdue assessments on the property. If the property changed hands within the last several years, the title insurance may allow a lower “reissue rate” premium because the recent title search is still valid. The title insurance company can provide this information.
You and your realtor/attorney will set the date and place of settlement with the seller. The Chief Administrative Office should be advised as soon as this is done. All documents and the mortgage check will be mailed to the place of settlement. There will be no one present at settlement from the College.
It is advisable to arrange for a walk-through inspection of the house just prior to settlement, to determine that all repairs and items to be included in the sale are satisfactory. If they are not, funds may be withheld from the seller, to be held in escrow until the repairs are made, and then released by the title company to the seller.
At settlement you will:
- pay the difference (if any) between the College’s mortgage and the amount owed on the purchase price, together with closing costs, by either a cashier’s check or a certified check.
- sign payroll deduction forms to repay the mortgage to the College.
- pay the interest owed on the mortgage between the date of settlement and the date amortization begins.
- receive copies of the Mortgage and the Note, plus the Settlement Sheet--and the keys to the house.
The original of the Mortgage will be sent by the title company to the Recorder of Deeds in the appropriate County for recording and then held in the College’s files until satisfaction. The original of the Note will also be held in the College’s files until it is paid.
7. Satisfaction of the Mortgage
Upon the satisfaction of the mortgage, you will receive the original Note, marked “Paid.” The original Mortgage will then be sent again to the County for the recording of the satisfaction, and after it is recorded and returned by the County, it will be sent to you for your records.