Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

 

Carmel Valley, San Diego 92130

Carmel Valley is an affluent suburban planned community in the north-western corner of San Diego, California, United States. The community is composed of commercial offices, residential units, hotels, and retail stores and restaurants. 
Carmel Valley is one of the newer neighborhoods of the City of San Diego, California. The community was formed by the City of San Diego on February 1, 1975. The construction later began in 1983. The name Carmel Valley comes from the Carmelite Sisters of Mercy, who established a dairy farm and monastery in the area c. 1905. Although the area was known locally as Carmel Valley, in 1974 the area was given the institutional name North City West in the master plan. The name Carmel Valley was readopted in the early 1990s.
Carmel Valley has an overlay of various school districts. For the elementary schools, the northern section is part of the Solana Beach School District (K-6). The southern section is managed by the Del Mar Union School District (K-6). Overlaying the entire community, the San Dieguito Union High School District manages the middle schools and high schools. Some Carmel Valley residents attend schools in the bordering communities of Pacific Highlands Ranch, Torrey Hills, and Torrey Pines. Carmel Valley schools are known for outstanding education and rigorous academics.
Elementary schools

  • Ashley Falls (Del Mar Union School District)

  • Solana Highlands Elementary School

  • Carmel Creek (Solana Beach School District)

  • Carmel Del Mar (Del Mar Union School District)

  • Del Mar Pines (private, nonsectarian)

  • Ocean Air (Del Mar Union School District)

  • Sage Canyon (Del Mar Union School District)

  • Solana Highlands (Solana Beach School District)

  • Solana Pacific (Solana Beach School District)

  • Solana Ranch (Solana Beach School District)

  • Sycamore Ridge (Del Mar Union School District); actually in Pacific Highlands Ranch

  • Torrey Hills (Del Mar Union School District); actually in Torrey Hills
    Middle schools and junior high schools

  • Carmel Valley Middle School (San Dieguito Union High School District)

  • Pacific Trails Middle School (San Dieguito Union High School District)

  • Earl Warren Middle School (San Dieguito Union High School District); actually located in Solana Beach
    K through 8

  • Notre Dame Academy (Roman Catholic)

  • Del Mar Pines School (Private)

High schools

  • Torrey Pines High School (San Dieguito Union High School District)

  • Canyon Crest Academy (San Dieguito Union High School District)

  • Cathedral Catholic High School (Catholic)

  • Westview High School (Poway Unified School District)

FIRST TIME HOME BUYER TIPS

For first time homebuyers following tips are the most important steps when buying a home:

Now the right mix of attractive listing prices, tax credits, improved financing and a wide choice of properties seems to be attracting the first time home buyers.

- Research Your Market. The real estate market is so localized that prices among similar homes vary greatly even between neighboring towns. All real estate is localized and the key to a successful purchase is to know the market. Buy a home in an area that works for you and your family best.

- Make a list of what you want. Let your realtor know your criteria in order to find homes that meet your needs. You can go to RiteCurb.com to view homes that fit your specifications. This will give you an idea of what is possible in your price range and in the location you prefer.

- Get pre-approved. There are different home ownership programs available.

Although not a final loan commitment, a pre-approval letter can be shown to listing brokers when you are bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. Lenders can be found on our website, RiteCurb.com

- Make a decision. Once you find the best home that fits your needs, take action. Homebuyers often hesitate, and this could mean you miss the best home that meets your needs. If you have chosen a good mortgage broker and a sharp realtor, you should have the facts to make the right decision. Finding homes for sale is easier than before.

First time home buyers are able to get the best loan types. There are different kind of properties to buy, homes, townhomes, condos, multi-Family, single family homes in different areas in different price points.

Some of the San Diego’s zip codes: 92126, 92127, 92128, 92129, 92130, 92131, 92064, 92067, 92131. Home values are changing depending on the areas. Mira Mesa, Scripps Ranch, Carmel Valley, Rancho Bernardo, Rancho Penasquitos, San Diego, Poway, Rancho Santa Fe.

First time homebuyers, more than any other demographic, stand to benefit the most in today's real estate market.

In fact, a recent survey commissioned reveals that 23 percent of adults plan to purchase a home in the next five years and that more than half of them (53.5 percent) will be first-time homebuyers.

www.RiteCurb.com

 

July 9, 2018

TIPS FOR A TIMELY CLOSING for the buyer

home buying, first time homes buyer, title, buyer tips

Purchasing a home can be a rewarding experience, but there may be delays in the closing due to situations that could have been avoided. At First American Title, we understand that by keeping you informed and helping you prepare for the closing day, it is likely you will have a stress free closing experience. Although closing procedures vary from state to state, having an understanding of what may be required at closing and preparing accordingly will help your settlement process go as smoothly as possible.

LENDER REQUIREMENTS: Your lender may require additional documentation or inspections (roof, septic, water, etc.) in order to comply with loan underwriting requirements. To expedite the processing of your loan, all lender requested documentation should be submitted in a timely fashion. 

SURVEY: If your lender requires a survey endorsement to the lender policy, it will be necessary for you to obtain a survey. If the seller has a prior survey, the lender may approve your use of the seller’s survey if there have been no structural changes to the property. 

BUYER PROTECTION PLAN: If a home warranty product is being provided and shown on contract, please provide the invoice to your escrow officer. 

HOMEOWNER INSURANCE (Hazard/Flood): Your lender will require a copy of the policy(s) and a paid receipt or invoice at least 10 days prior to consummation. The lender’s full name and address must be shown on the policy. 

CONDOMINIUM APPROVAL: Written approval of the sale may be required from the Condominium Association. Your closing agent must have this approval form in order to close. Please be sure to make application early in order to avoid any delay in closing.

POWER OF ATTORNEY: The use of a power of attorney must be approved in advance of settlement by the closing agent and your lender. If you are planning to use a power of attorney, please inform the closing agent as soon as possible to allow time to properly review the document. 

MARITAL STATUS: Spouses may be required to sign certain closing documents even though they do not intend to hold title and their name will not appear on the deed. Check with your closing agent and lender to see what documents you and your spouse will be required to sign. 

CLOSING DISCLOSURE (CD): This is a federally mandated form which must be delivered to you at least 3 business days* before you sign paperwork. If you have questions or if any information is incorrect, notify your lender immediately. 

MAIL-AWAY: If you are unable to attend the signing, please provide the address where the closing documents should be mailed and a contact phone number. Your signature on certain affidavits, loan documents and other closing documents may require the services of a notary. *For the purpose of the CD, “business day” is defined as every day except Sundays and Federal legal holidays.

 

June 17, 2018

Home Buying Terms

carmel valley, house for sale, home buying

Home Buying Terms

Acknowledgment:

A formal declaration

made before an authorized official (usually a notary public) by the person who has executed (signed) a document that his/her own act and deed. In most instances, documents must be acknowledged (notarized) before they can be accepted for recording.

Adjustable Rate Mortgage (ARM)

A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages). Adjustment Period: The length of time between interest rate changes on an ARM. For example, a loan with adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year. Affidavit A sworn statement in writing, made before an authorized official. A.L.T.A. Abbreviation for the American Land Title Association.

Amortization

Repayment of a loan in equal installments of principal and interest, rather than interest-only payments. Annual Percentage Rate (APR) The total finance charges (interest, loan fees, points) expressed as a percentage of the loan amount. Assessments Specific and special taxes (in addition to normal taxes) imposed on real property to pay for public improvements within a specific geographic area.

Assumption of Mortgage

A Buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability. Attorney -In-Fact An agent authorized to act for another under a Power of Attorney. Balloon Payment A lump sum principal payment due at the end of some mortgages or other long-term loans.

Beneficiary

As used in a trust deed, the Lender is designated as the Beneficiary, i.e. obtains the benefit of the security. Cap The limit on how much the interest rate can be adjusted over the life of the mortgage. CC&Rs Covenants, Conditions and Restrictions. A document that controls the use, requirements and restrictions of a property. Certificate of Reasonable Value (CRV) A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.

Conventional Loan

A mortgage loan which is not insured or guaranteed by a governmental agency.

Closing Statement

The financial disclosure statement that accounts for all of the funds received and disbursed at the closing, including deposits for taxes, hazard insurance, and mortgage insurance.

Condominium

A form of real estate ownership. The owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surfaces (walls, floors, and ceilings) serve as its boundaries. Contingency A condition that must be satisfied before a contract can be completed.  For instance, a sales agreement may be contingent upon the buyer obtaining financing. Conversion to Clause A provision in some ARMs that enables your to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed-rate mortgages. This conversion feature may cost extra.

CRB Certified Residential Broker.

To be certified, a broker must be a member of the National Association of Realtors, have five years’ experience as a licensed broker and have completed five required Residential Division courses.

Deed

Written instrument by which the ownership of land is transferred from one person to another.

Deed of Trust

Written instrument by which title to land is transferred to a trustee as security for a debt or other obligation. Also called Trust Deed. Used in place of mortgages in many states. Deposit Receipt Used when accepting

“Earnest Money” to bind an offer for property

by a prospective purchaser; also includes

terms of a contract.

Due-On-Sale Clause

An acceleration

clause that requires full payment of a

mortgage or deed of trust when the secured

property changes ownership.

Earnest Money The portion of the down

payment delivered to the seller or escrow

agent by the purchaser with written offer as

evidence of good faith. It is deposited into

escrow upon opening of escrow.

Easement A right to use the property of

another for a specified purpose.

Escrow A procedure in which a third party

acts as a stakeholder for both the buyer and

the seller, carrying out both parties’ instructions

and assuming responsibility for handling all of

the paperwork and distribution of funds.

FHA (Federal Housing Administration )

A federal agency, created by the National

Housing Act of 1934, for the purpose of

expanding and strengthening home ownership

by making private mortgage financing possible

on a long-term, low-down payment basis. FHA

include a mortgage insurance program, with

premiums paid by the homeowner, to protect

Lender’s against loss on these higher-risk

loans. Since 1965, FHA has been part of the

newly-created Department of Housing and

Urban Development (HUD).

Title365.com | CALIFORNIA Home BUYERS Guide 26

 

Federal National Mortgage Association (FNMA)

Popularly known as

Fannie Mae. A privately owned corporation

created by Congress to support the

secondary mortgage market. It purchases

and sells residential mortgages insured by

FHA or guaranteed by the VA, as well as

conventional home mortgages.

Fee Simple An estate in which the owner

has unrestricted power to dispose of the

property as he wishes, including leaving by

will or inheritance. It is the greatest interest a

person can have in real estate.

Finance Charge The total cost a borrower

must pay, directly or indirectly, to obtain credit

according to Regulation Z.

Graduate d Payment Mortgage A

residential mortgage with monthly payments

that start at a low level and increase at a

predetermined rate.

Grant A transfer of real property.

Grantee The person to whom a grant is

made.

Grantor The person who makes a grant.

GRI Graduate Realtors Institute. A professional

designation granted to a member of the

National Association of Realtors who has

successfully completed three courses covering

Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified

inspectors report on a properties overall

condition. The report usually includes

an evaluation of both the structure and

mechanical systems.

Home Warranty Plan Protection against

failure of mechanical systems within the

property. Usually includes plumbing, electrical,

heating systems and installed appliances.

Impound Account Funds retained by

a lender to cover such items as taxes and

hazard insurance premiums.

Index A source of interest rates used to

determine changes in an ARMs interest rate

over the term of the loan.

Joint Tenancy An equal undivided

ownership of property by two or more persons.

Upon the death of any owner, the survivors

take the decedents interest in the property.

Lien A legal hold or claim on property as

security for a debt or charge.

Loan Commitment A written promise

to make a loan for a specified amount on

specified terms.

Loan-To-Value Ratio The relationship

between the amount of the mortgage and the

appraised value of the property, expressed as

a percentage of the appraised value.

Margin The number of percentage points the

lender adds to the index rate to calculate the

ARM interest rate at each adjustment.

Mortgage Banker A company or

individual engaged in the business of

originating mortgage loans with its own funds.

Frequently those loans are sold to long-term

investors, with the mortgage banker servicing

the loans for the investor until they are paid

in full.

Mortgage Life Insurance A type of term

life insurance often bought by borrowers. The

coverage decreases as the mortgage balance

declines. If the borrower dies while the policy

is in force, the debt is automatically covered by

insurance proceeds.

Negative Amortization Negative

amortization occurs when monthly payments

fail to cover the interest cost. The interest that

isn’t covered is added to the unpaid balance,

which means that even after several payments

you could owe more than you did at the

beginning of the loan. Negative amortization

can occur when an ARM has a payment cap

that results in monthly payments that aren’t

high enough to cover the interest.

Origination Fee A fee or charge for

work involved in evaluating, preparing, and

submitting a proposed mortgage loan. The fee

is limited to 1 percent for FHA and VA loans.

Personal Property Movable property;

all property which is not real property: e.g.,

furniture, car, clothing.

PITI Principal, interest, taxes and insurance.

Planned Unit Development (PUD) A

zoning designation for property developed at

the same or slightly greater overall density

than conventional development, sometimes

with improvements clustered between open

common areas. Uses may be residential,

commercial or industrial.

Point An amount equal to 1 percent of the

principal amount of the investment or note.

The lender assesses loan discount points at

closing to increase the yield on the mortgage

to a position competitive with other types of

investments.

Prepayment Penalty A fee charged to a

mortgagor who pays a loan before it is due.

Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI)

Insurance written by a private company

protecting the lender against loss if the

borrower defaults on the mortgage.

Purchase Agreement A written

document in which the purchaser agrees

to buy certain real estate and seller agrees

to sell under stated terms and conditions.

Also called a sales contract, earnest money

contract, or agreement for sale.

Real Property Land and buildings as

opposed to personal property or chattels.

Realtor ® A real estate broker or associate

active in a local real estate board affiliated

with the National Association of Realtors.

Recordation Filing for record in the office

of the county recorder.

Regulation Z The set of rules governing

consumer lending issued by the Federal

Reserve Board of Governors in accordance

with the Consumer Protection Act.

Tenancy in Common A type of joint

ownership of property by two or more

persons with no right of survivorship.

Title Evidence of a persons right or the

extent of his interest in property.

Title Insurance Policy A policy that

protects the purchaser, mortgagee or other

party against losses.

VA Loan A loan that is partially guaranteed

by the Veterans Administration and made by

a private lender.

Veterans Administration (VA) An

independent agency of the federal government

created by the Service Mens Readjustment

Act of 1944 to administer a variety of

benefit programs designated to facilitate the

adjustment of returning veterans to civilian

life. Among the benefit programs is the

Home Loan Guaranty Program designated

to encourage Lenders to offer long-term low

down payment financing to eligible veterans

by guaranteeing the lender against loss on

these higher-risk loans.

?

Title365.com | CALIFORNIA Home BUYERS Guide 26

Federal National Mortgage

Association (FNMA) Popularly known as

Fannie Mae. A privately owned corporation

created by Congress to support the

secondary mortgage market. It purchases

and sells residential mortgages insured by

FHA or guaranteed by the VA, as well as

conventional home mortgages.

Fee Simple An estate in which the owner

has unrestricted power to dispose of the

property as he wishes, including leaving by

will or inheritance. It is the greatest interest a

person can have in real estate.

Finance Charge The total cost a borrower

must pay, directly or indirectly, to obtain credit

according to Regulation Z.

Graduate d Payment Mortgage A

residential mortgage with monthly payments

that start at a low level and increase at a

predetermined rate.

Grant A transfer of real property.

Grantee The person to whom a grant is

made.

Grantor The person who makes a grant.

GRI Graduate Realtors Institute. A professional

designation granted to a member of the

National Association of Realtors who has

successfully completed three courses covering

Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified

inspectors report on a properties overall

condition. The report usually includes

an evaluation of both the structure and

mechanical systems.

Home Warranty Plan Protection against

failure of mechanical systems within the

property. Usually includes plumbing, electrical,

heating systems and installed appliances.

Impound Account Funds retained by

a lender to cover such items as taxes and

hazard insurance premiums.

Index A source of interest rates used to

determine changes in an ARMs interest rate

over the term of the loan.

Joint Tenancy An equal undivided

ownership of property by two or more persons.

Upon the death of any owner, the survivors

take the decedents interest in the property.

Lien A legal hold or claim on property as

security for a debt or charge.

Loan Commitment A written promise

to make a loan for a specified amount on

specified terms.

Loan-To-Value Ratio The relationship

between the amount of the mortgage and the

appraised value of the property, expressed as

a percentage of the appraised value.

Margin The number of percentage points the

lender adds to the index rate to calculate the

ARM interest rate at each adjustment.

Mortgage Banker A company or

individual engaged in the business of

originating mortgage loans with its own funds.

Frequently those loans are sold to long-term

investors, with the mortgage banker servicing

the loans for the investor until they are paid

in full.

Mortgage Life Insurance A type of term

life insurance often bought by borrowers. The

coverage decreases as the mortgage balance

declines. If the borrower dies while the policy

is in force, the debt is automatically covered by

insurance proceeds.

Negative Amortization Negative

amortization occurs when monthly payments

fail to cover the interest cost. The interest that

isn’t covered is added to the unpaid balance,

which means that even after several payments

you could owe more than you did at the

beginning of the loan. Negative amortization

can occur when an ARM has a payment cap

that results in monthly payments that aren’t

high enough to cover the interest.

Origination Fee A fee or charge for

work involved in evaluating, preparing, and

submitting a proposed mortgage loan. The fee

is limited to 1 percent for FHA and VA loans.

Personal Property Movable property;

all property which is not real property: e.g.,

furniture, car, clothing.

PITI Principal, interest, taxes and insurance.

Planned Unit Development (PUD) A

zoning designation for property developed at

the same or slightly greater overall density

than conventional development, sometimes

with improvements clustered between open

common areas. Uses may be residential,

commercial or industrial.

Point An amount equal to 1 percent of the

principal amount of the investment or note.

The lender assesses loan discount points at

closing to increase the yield on the mortgage

to a position competitive with other types of

investments.

Prepayment Penalty A fee charged to a

mortgagor who pays a loan before it is due.

Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI)

Insurance written by a private company

protecting the lender against loss if the

borrower defaults on the mortgage.

Purchase Agreement A written

document in which the purchaser agrees

to buy certain real estate and seller agrees

to sell under stated terms and conditions.

Also called a sales contract, earnest money

contract, or agreement for sale.

Real Property Land and buildings as

opposed to personal property or chattels.

Realtor ® A real estate broker or associate

active in a local real estate board affiliated

with the National Association of Realtors.

Recordation Filing for record in the office

of the county recorder.

Regulation Z The set of rules governing

consumer lending issued by the Federal

Reserve Board of Governors in accordance

with the Consumer Protection Act.

Tenancy in Common A type of joint

ownership of property by two or more

persons with no right of survivorship.

Title Evidence of a persons right or the

extent of his interest in property.

Title Insurance Policy A policy that

protects the purchaser, mortgagee or other

party against losses.

VA Loan A loan that is partially guaranteed

by the Veterans Administration and made by

a private lender.

Veterans Administration (VA) An

independent agency of the federal government

created by the Service Mens Readjustment

Act of 1944 to administer a variety of

benefit programs designated to facilitate the

adjustment of returning veterans to civilian

life. Among the benefit programs is the

Home Loan Guaranty Program designated

to encourage Lenders to offer long-term low

down payment financing to eligible veterans

by guaranteeing the lender against loss on

these higher-risk loans.

Title365.com | CALIFORNIA Home BUYERS Guide 26

Federal National Mortgage

Association (FNMA) Popularly known as

Fannie Mae. A privately owned corporation

created by Congress to support the

secondary mortgage market. It purchases

and sells residential mortgages insured by

FHA or guaranteed by the VA, as well as

conventional home mortgages.

Fee Simple An estate in which the owner

has unrestricted power to dispose of the

property as he wishes, including leaving by

will or inheritance. It is the greatest interest a

person can have in real estate.

Finance Charge The total cost a borrower

must pay, directly or indirectly, to obtain credit

according to Regulation Z.

Graduate d Payment Mortgage A

residential mortgage with monthly payments

that start at a low level and increase at a

predetermined rate.

Grant A transfer of real property.

Grantee The person to whom a grant is

made.

Grantor The person who makes a grant.

GRI Graduate Realtors Institute. A professional

designation granted to a member of the

National Association of Realtors who has

successfully completed three courses covering

Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified

inspectors report on a properties overall

condition. The report usually includes

an evaluation of both the structure and

mechanical systems.

Home Warranty Plan Protection against

failure of mechanical systems within the

property. Usually includes plumbing, electrical,

heating systems and installed appliances.

Impound Account Funds retained by

a lender to cover such items as taxes and

hazard insurance premiums.

Index A source of interest rates used to

determine changes in an ARMs interest rate

over the term of the loan.

Joint Tenancy An equal undivided

ownership of property by two or more persons.

Upon the death of any owner, the survivors

take the decedents interest in the property.

Lien A legal hold or claim on property as

security for a debt or charge.

Loan Commitment A written promise

to make a loan for a specified amount on

specified terms.

Loan-To-Value Ratio The relationship

between the amount of the mortgage and the

appraised value of the property, expressed as

a percentage of the appraised value.

Margin The number of percentage points the

lender adds to the index rate to calculate the

ARM interest rate at each adjustment.

Mortgage Banker A company or

individual engaged in the business of

originating mortgage loans with its own funds.

Frequently those loans are sold to long-term

investors, with the mortgage banker servicing

the loans for the investor until they are paid

in full.

Mortgage Life Insurance A type of term

life insurance often bought by borrowers. The

coverage decreases as the mortgage balance

declines. If the borrower dies while the policy

is in force, the debt is automatically covered by

insurance proceeds.

Negative Amortization Negative

amortization occurs when monthly payments

fail to cover the interest cost. The interest that

isn’t covered is added to the unpaid balance,

which means that even after several payments

you could owe more than you did at the

beginning of the loan. Negative amortization

can occur when an ARM has a payment cap

that results in monthly payments that aren’t

high enough to cover the interest.

Origination Fee A fee or charge for

work involved in evaluating, preparing, and

submitting a proposed mortgage loan. The fee

is limited to 1 percent for FHA and VA loans.

Personal Property Movable property;

all property which is not real property: e.g.,

furniture, car, clothing.

PITI Principal, interest, taxes and insurance.

Planned Unit Development (PUD) A

zoning designation for property developed at

the same or slightly greater overall density

than conventional development, sometimes

with improvements clustered between open

common areas. Uses may be residential,

commercial or industrial.

Point An amount equal to 1 percent of the

principal amount of the investment or note.

The lender assesses loan discount points at

closing to increase the yield on the mortgage

to a position competitive with other types of

investments.

Prepayment Penalty A fee charged to a

mortgagor who pays a loan before it is due.

Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI)

Insurance written by a private company

protecting the lender against loss if the

borrower defaults on the mortgage.

Purchase Agreement A written

document in which the purchaser agrees

to buy certain real estate and seller agrees

to sell under stated terms and conditions.

Also called a sales contract, earnest money

contract, or agreement for sale.

Real Property Land and buildings as

opposed to personal property or chattels.

Realtor ® A real estate broker or associate

active in a local real estate board affiliated

with the National Association of Realtors.

Recordation Filing for record in the office

of the county recorder.

Regulation Z The set of rules governing

consumer lending issued by the Federal

Reserve Board of Governors in accordance

with the Consumer Protection Act.

Tenancy in Common A type of joint

ownership of property by two or more

persons with no right of survivorship.

Title Evidence of a persons right or the

extent of his interest in property.

Title Insurance Policy A policy that

protects the purchaser, mortgagee or other

party against losses.

VA Loan A loan that is partially guaranteed

by the Veterans Administration and made by

a private lender.

Veterans Administration (VA) An

independent agency of the federal government

created by the Service Mens Readjustment

Act of 1944 to administer a variety of

benefit programs designated to facilitate the

adjustment of returning veterans to civilian

life. Among the benefit programs is the

Home Loan Guaranty Program designated

to encourage Lenders to offer long-term low

down payment financing to eligible veterans

by guaranteeing the lender against loss on

these higher-risk loans.

Home Buying Terms

?

Acknowledgment A formal declaration

made before an authorized official (usually a

notary public) by the person who has executed

(signed) a document that his/her own act and

deed. In most instances, documents must be

acknowledged (notarized) before they can be

accepted for recording.

?

Adjustable Rate Mortgage (ARM)

A mortgage with an interest rate that

changes over time in line with movements

in the index. ARMs are also referred to as

AMLs (adjustable mortgage loans) or VRMs

(variable rate mortgages).

?

Adjustment Period: The length of time

between interest rate changes on an ARM. For

example, a loan with adjustment period of one

year is called a one-year ARM, which means

that the interest rate can change once a year.

Affidavit A sworn statement in writing,

made before an authorized official.

A.L.T.A. Abbreviation for the American Land

Title Association.

?

Amortization Repayment of a loan in

equal installments of principal and interest,

rather than interest-only payments.

Annual Percentage Rate (APR) The

total finance charges (interest, loan fees, points)

expressed as a percentage of the loan amount.

?

Assessments Specific and special taxes

(in addition to normal taxes) imposed on

real property to pay for public improvements

within a specific geographic area.

Assumption of Mortgage A Buyer’s

agreement to assume the liability under an

existing note that is secured by a mortgage

or deed of trust. The lender must approve the

buyer in order to release the original borrower

(usually the seller) from liability.

Attorney -In-Fact An agent authorized to

act for another under a Power of Attorney.

Balloon Payment A lump sum principal

payment due at the end of some mortgages

or other long-term loans.

Beneficiary As used in a trust deed, the

Lender is designated as the Beneficiary, i.e.

obtains the benefit of the security.

Cap The limit on how much the interest rate

can be adjusted over the life of the mortgage.

CC&Rs Covenants, Conditions and

Restrictions. A document that controls the use,

requirements and restrictions of a property.

Certificate of Reasonable Value

(CRV) A document that establishes the

maximum value and loan amount for a VA

guaranteed mortgage.

Conventional Loan A mortgage loan

which is not insured or guaranteed by a

governmental agency.

Closing Statement The financial

disclosure statement that accounts for all

of the funds received and disbursed at the

closing, including deposits for taxes, hazard

insurance, and mortgage insurance.

Condominium A form of real estate

ownership. The owner receives title to a

particular unit and has a proportionate

interest in certain common areas. The unit

itself is generally a separately owned space

whose interior surfaces (walls, floors, and

ceilings) serve as its boundaries.

Contingency A condition that must be

satisfied before a contract can be completed.

For instance, a sales agreement may be

contingent upon the buyer obtaining financing.

Conversion to Clause A provision in

some ARMs that enables your to change an

ARM to a fixed-rate loan, usually after the

first adjustment period. The new fixed rate is

generally set at the prevailing interest rate for

fixed-rate mortgages. This conversion feature

may cost extra.

CRB Certified Residential Broker. To be

certified, a broker must be a member of the

National Association of Realtors, have five

years’ experience as a licensed broker and

have completed five required Residential

Division courses.

Deed Written instrument by which the

ownership of land is transferred from one

person to another.

Deed of Trust Written instrument by

which title to land is transferred to a trustee

as security for a debt or other obligation.

Also called Trust Deed. Used in place of

mortgages in many states.

Deposit Receipt Used when accepting

“Earnest Money” to bind an offer for property

by a prospective purchaser; also includes

terms of a contract.

Due-On-Sale Clause An acceleration

clause that requires full payment of a

mortgage or deed of trust when the secured

property changes ownership.

Earnest Money The portion of the down

payment delivered to the seller or escrow

agent by the purchaser with written offer as

evidence of good faith. It is deposited into

escrow upon opening of escrow.

Easement A right to use the property of

another for a specified purpose.

Escrow A procedure in which a third party

acts as a stakeholder for both the buyer and

the seller, carrying out both parties’ instructions

and assuming responsibility for handling all of

the paperwork and distribution of funds.

FHA (Federal Housing Administration )

A federal agency, created by the National

Housing Act of 1934, for the purpose of

expanding and strengthening home ownership

by making private mortgage financing possible

on a long-term, low-down payment basis. FHA

include a mortgage insurance program, with

premiums paid by the homeowner, to protect

Lender’s against loss on these higher-risk

loans. Since 1965, FHA has been part of the

newly-created Department of Housing and

Urban Development (HUD).

?

Title365.com | CALIFORNIA Home BUYERS Guide 26

Federal National Mortgage

Association (FNMA) Popularly known as

Fannie Mae. A privately owned corporation

created by Congress to support the

secondary mortgage market. It purchases

and sells residential mortgages insured by

FHA or guaranteed by the VA, as well as

conventional home mortgages.

Fee Simple An estate in which the owner

has unrestricted power to dispose of the

property as he wishes, including leaving by

will or inheritance. It is the greatest interest a

person can have in real estate.

Finance Charge The total cost a borrower

must pay, directly or indirectly, to obtain credit

according to Regulation Z.

Graduate d Payment Mortgage A

residential mortgage with monthly payments

that start at a low level and increase at a

predetermined rate.

Grant A transfer of real property.

Grantee The person to whom a grant is

made.

Grantor The person who makes a grant.

GRI Graduate Realtors Institute. A professional

designation granted to a member of the

National Association of Realtors who has

successfully completed three courses covering

Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified

inspectors report on a properties overall

condition. The report usually includes

an evaluation of both the structure and

mechanical systems.

Home Warranty Plan Protection against

failure of mechanical systems within the

property. Usually includes plumbing, electrical,

heating systems and installed appliances.

Impound Account Funds retained by

a lender to cover such items as taxes and

hazard insurance premiums.

Index A source of interest rates used to

determine changes in an ARMs interest rate

over the term of the loan.

Joint Tenancy An equal undivided

ownership of property by two or more persons.

Upon the death of any owner, the survivors

take the decedents interest in the property.

Lien A legal hold or claim on property as

security for a debt or charge.

Loan Commitment A written promise

to make a loan for a specified amount on

specified terms.

Loan-To-Value Ratio The relationship

between the amount of the mortgage and the

appraised value of the property, expressed as

a percentage of the appraised value.

Margin The number of percentage points the

lender adds to the index rate to calculate the

ARM interest rate at each adjustment.

Mortgage Banker A company or

individual engaged in the business of

originating mortgage loans with its own funds.

Frequently those loans are sold to long-term

investors, with the mortgage banker servicing

the loans for the investor until they are paid

in full.

Mortgage Life Insurance A type of term

life insurance often bought by borrowers. The

coverage decreases as the mortgage balance

declines. If the borrower dies while the policy

is in force, the debt is automatically covered by

insurance proceeds.

Negative Amortization Negative

amortization occurs when monthly payments

fail to cover the interest cost. The interest that

isn’t covered is added to the unpaid balance,

which means that even after several payments

you could owe more than you did at the

beginning of the loan. Negative amortization

can occur when an ARM has a payment cap

that results in monthly payments that aren’t

high enough to cover the interest.

Origination Fee A fee or charge for

work involved in evaluating, preparing, and

submitting a proposed mortgage loan. The fee

is limited to 1 percent for FHA and VA loans.

Personal Property Movable property;

all property which is not real property: e.g.,

furniture, car, clothing.

PITI Principal, interest, taxes and insurance.

Planned Unit Development (PUD) A

zoning designation for property developed at

the same or slightly greater overall density

than conventional development, sometimes

with improvements clustered between open

common areas. Uses may be residential,

commercial or industrial.

Point An amount equal to 1 percent of the

principal amount of the investment or note.

The lender assesses loan discount points at

closing to increase the yield on the mortgage

to a position competitive with other types of

investments.

Prepayment Penalty A fee charged to a

mortgagor who pays a loan before it is due.

Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI)

Insurance written by a private company

protecting the lender against loss if the

borrower defaults on the mortgage.

Purchase Agreement A written

document in which the purchaser agrees

to buy certain real estate and seller agrees

to sell under stated terms and conditions.

Also called a sales contract, earnest money

contract, or agreement for sale.

Real Property Land and buildings as

opposed to personal property or chattels.

Realtor ® A real estate broker or associate

active in a local real estate board affiliated

with the National Association of Realtors.

Recordation Filing for record in the office

of the county recorder.

Regulation Z The set of rules governing

consumer lending issued by the Federal

Reserve Board of Governors in accordance

with the Consumer Protection Act.

Tenancy in Common A type of joint

ownership of property by two or more

persons with no right of survivorship.

Title Evidence of a persons right or the

extent of his interest in property.

Title Insurance Policy A policy that

protects the purchaser, mortgagee or other

party against losses.

VA Loan A loan that is partially guaranteed

by the Veterans Administration and made by

a private lender.

Veterans Administration (VA) An

independent agency of the federal government

created by the Service Mens Readjustment

Act of 1944 to administer a variety of

benefit programs designated to facilitate the

adjustment of returning veterans to civilian

life. Among the benefit programs is the

Home Loan Guaranty Program designated

to encourage Lenders to offer long-term low

down payment financing to eligible veterans

by guaranteeing the lender against loss on

these higher-risk loans.

?

Title365.com | CALIFORNIA Home BUYERS Guide 26

Federal National Mortgage

Association (FNMA) Popularly known as

Fannie Mae. A privately owned corporation

created by Congress to support the

secondary mortgage market. It purchases

and sells residential mortgages insured by

FHA or guaranteed by the VA, as well as

conventional home mortgages.

Fee Simple An estate in which the owner

has unrestricted power to dispose of the

property as he wishes, including leaving by

will or inheritance. It is the greatest interest a

person can have in real estate.

Finance Charge The total cost a borrower

must pay, directly or indirectly, to obtain credit

according to Regulation Z.

Graduate d Payment Mortgage A

residential mortgage with monthly payments

that start at a low level and increase at a

predetermined rate.

Grant A transfer of real property.

Grantee The person to whom a grant is

made.

Grantor The person who makes a grant.

GRI Graduate Realtors Institute. A professional

designation granted to a member of the

National Association of Realtors who has

successfully completed three courses covering

Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified

inspectors report on a properties overall

condition. The report usually includes

an evaluation of both the structure and

mechanical systems.

Home Warranty Plan Protection against

failure of mechanical systems within the

property. Usually includes plumbing, electrical,

heating systems and installed appliances.

Impound Account Funds retained by

a lender to cover such items as taxes and

hazard insurance premiums.

Index A source of interest rates used to

determine changes in an ARMs interest rate

over the term of the loan.

Joint Tenancy An equal undivided

ownership of property by two or more persons.

Upon the death of any owner, the survivors

take the decedents interest in the property.

Lien A legal hold or claim on property as

security for a debt or charge.

Loan Commitment A written promise

to make a loan for a specified amount on

specified terms.

Loan-To-Value Ratio The relationship

between the amount of the mortgage and the

appraised value of the property, expressed as

a percentage of the appraised value.

Margin The number of percentage points the

lender adds to the index rate to calculate the

ARM interest rate at each adjustment.

Mortgage Banker A company or

individual engaged in the business of

originating mortgage loans with its own funds.

Frequently those loans are sold to long-term

investors, with the mortgage banker servicing

the loans for the investor until they are paid

in full.

Mortgage Life Insurance A type of term

life insurance often bought by borrowers. The

coverage decreases as the mortgage balance

declines. If the borrower dies while the policy

is in force, the debt is automatically covered by

insurance proceeds.

Negative Amortization Negative

amortization occurs when monthly payments

fail to cover the interest cost. The interest that

isn’t covered is added to the unpaid balance,

which means that even after several payments

you could owe more than you did at the

beginning of the loan. Negative amortization

can occur when an ARM has a payment cap

that results in monthly payments that aren’t

high enough to cover the interest.

Origination Fee A fee or charge for

work involved in evaluating, preparing, and

submitting a proposed mortgage loan. The fee

is limited to 1 percent for FHA and VA loans.

Personal Property Movable property;

all property which is not real property: e.g.,

furniture, car, clothing.

PITI Principal, interest, taxes and insurance.

Planned Unit Development (PUD) A

zoning designation for property developed at

the same or slightly greater overall density

than conventional development, sometimes

with improvements clustered between open

common areas. Uses may be residential,

commercial or industrial.

Point An amount equal to 1 percent of the

principal amount of the investment or note.

The lender assesses loan discount points at

closing to increase the yield on the mortgage

to a position competitive with other types of

investments.

Prepayment Penalty A fee charged to a

mortgagor who pays a loan before it is due.

Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI)

Insurance written by a private company

protecting the lender against loss if the

borrower defaults on the mortgage.

Purchase Agreement A written

document in which the purchaser agrees

to buy certain real estate and seller agrees

to sell under stated terms and conditions.

Also called a sales contract, earnest money

contract, or agreement for sale.

Real Property Land and buildings as

opposed to personal property or chattels.

Realtor ® A real estate broker or associate

active in a local real estate board affiliated

with the National Association of Realtors.

Recordation Filing for record in the office

of the county recorder.

Regulation Z The set of rules governing

consumer lending issued by the Federal

Reserve Board of Governors in accordance

with the Consumer Protection Act.

Tenancy in Common A type of joint

ownership of property by two or more

persons with no right of survivorship.

Title Evidence of a persons right or the

extent of his interest in property.

Title Insurance Policy A policy that

protects the purchaser, mortgagee or other

party against losses.

VA Loan A loan that is partially guaranteed

by the Veterans Administration and made by

a private lender.

Veterans Administration (VA) An

independent agency of the federal government

created by the Service Mens Readjustment

Act of 1944 to administer a variety of

benefit programs designated to facilitate the

adjustment of returning veterans to civilian

life. Among the benefit programs is the

Home Loan Guaranty Program designated

to encourage Lenders to offer long-term low

down payment financing to eligible veterans

by guaranteeing the lender against loss on

these higher-risk loans.

Title365.com | CALIFORNIA Home BUYERS Guide 26

Federal National Mortgage

Association (FNMA) Popularly known as

Fannie Mae. A privately owned corporation

created by Congress to support the

secondary mortgage market. It purchases

and sells residential mortgages insured by

FHA or guaranteed by the VA, as well as

conventional home mortgages.

Fee Simple An estate in which the owner

has unrestricted power to dispose of the

property as he wishes, including leaving by

will or inheritance. It is the greatest interest a

person can have in real estate.

Finance Charge The total cost a borrower

must pay, directly or indirectly, to obtain credit

according to Regulation Z.

Graduate d Payment Mortgage A

residential mortgage with monthly payments

that start at a low level and increase at a

predetermined rate.

Grant A transfer of real property.

Grantee The person to whom a grant is

made.

Grantor The person who makes a grant.

GRI Graduate Realtors Institute. A professional

designation granted to a member of the

National Association of Realtors who has

successfully completed three courses covering

Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified

inspectors report on a properties overall

condition. The report usually includes

an evaluation of both the structure and

mechanical systems.

Home Warranty Plan Protection against

failure of mechanical systems within the

property. Usually includes plumbing, electrical,

heating systems and installed appliances.

Impound Account Funds retained by

a lender to cover such items as taxes and

hazard insurance premiums.

Index A source of interest rates used to

determine changes in an ARMs interest rate

over the term of the loan.

Joint Tenancy An equal undivided

ownership of property by two or more persons.

Upon the death of any owner, the survivors

take the decedents interest in the property.

Lien A legal hold or claim on property as

security for a debt or charge.

Loan Commitment A written promise

to make a loan for a specified amount on

specified terms.

Loan-To-Value Ratio The relationship

between the amount of the mortgage and the

appraised value of the property, expressed as

a percentage of the appraised value.

Margin The number of percentage points the

lender adds to the index rate to calculate the

ARM interest rate at each adjustment.

Mortgage Banker A company or

individual engaged in the business of

originating mortgage loans with its own funds.

Frequently those loans are sold to long-term

investors, with the mortgage banker servicing

the loans for the investor until they are paid

in full.

Mortgage Life Insurance A type of term

life insurance often bought by borrowers. The

coverage decreases as the mortgage balance

declines. If the borrower dies while the policy

is in force, the debt is automatically covered by

insurance proceeds.

Negative Amortization Negative

amortization occurs when monthly payments

fail to cover the interest cost. The interest that

isn’t covered is added to the unpaid balance,

which means that even after several payments

you could owe more than you did at the

beginning of the loan. Negative amortization

can occur when an ARM has a payment cap

that results in monthly payments that aren’t

high enough to cover the interest.

Origination Fee A fee or charge for

work involved in evaluating, preparing, and

submitting a proposed mortgage loan. The fee

is limited to 1 percent for FHA and VA loans.

Personal Property Movable property;

all property which is not real property: e.g.,

furniture, car, clothing.

PITI Principal, interest, taxes and insurance.

Planned Unit Development (PUD) A

zoning designation for property developed at

the same or slightly greater overall density

than conventional development, sometimes

with improvements clustered between open

common areas. Uses may be residential,

commercial or industrial.

Point An amount equal to 1 percent of the

principal amount of the investment or note.

The lender assesses loan discount points at

closing to increase the yield on the mortgage

to a position competitive with other types of

investments.

Prepayment Penalty A fee charged to a

mortgagor who pays a loan before it is due.

Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI)

Insurance written by a private company

protecting the lender against loss if the

borrower defaults on the mortgage.

Purchase Agreement A written

document in which the purchaser agrees

to buy certain real estate and seller agrees

to sell under stated terms and conditions.

Also called a sales contract, earnest money

contract, or agreement for sale.

Real Property Land and buildings as

opposed to personal property or chattels.

Realtor ® A real estate broker or associate

active in a local real estate board affiliated

with the National Association of Realtors.

Recordation Filing for record in the office

of the county recorder.

Regulation Z The set of rules governing

consumer lending issued by the Federal

Reserve Board of Governors in accordance

with the Consumer Protection Act.

Tenancy in Common A type of joint

ownership of property by two or more

persons with no right of survivorship.

Title Evidence of a persons right or the

extent of his interest in property.

Title Insurance Policy A policy that

protects the purchaser, mortgagee or other

party against losses.

VA Loan A loan that is partially guaranteed

by the Veterans Administration and made by

a private lender.

Veterans Administration (VA) An

independent agency of the federal government

created by the Service Mens Readjustment

Act of 1944 to administer a variety of

benefit programs designated to facilitate the

adjustment of returning veterans to civilian

life. Among the benefit programs is the

Home Loan Guaranty Program designated

to encourage Lenders to offer long-term low

down payment financing to eligible veterans

by guaranteeing the lender against loss on

these higher-risk loans.

 

June 17, 2018

GETTING PRE-QUALIFIED, Home Buying Process

financing, loan, mortgage, getting prequalified, homebuying

FINANCING

GETTING PRE-QUALIFIED

Once you have an idea of the type and size home you want and the area you’d like to look in, you should be pre-qualified by a Lender. By doing this before looking for a home, you’ll save yourself time, energy and frustration because pre-qualification can: 

Determine How Much Home You Can Afford. Pre-qualification helps you

avoid buying less home than you can afford or being disappointed if you don’t qualify for as much as you had hoped.

Show What Your Total Investment Will Be. You’ll know approximately how

much money you’ll need for down payment and closing costs.

Inform you of your monthly payments . You’ll have a close estimate of your

monthly principal, interest, taxes and insurance (PIT).

Identify the Loan Programs You Can Qualify For. With the wide variety

of loan programs available, it is important to know which types you qualify for and which will best suit your needs.

Strengthen Your Offer. Sellers are more inclined to accept realistic offers

when they know that you have taken the time to be interviewed by a Lender and can probably qualify for the loan.

At this point, your Lender can also help you determine alternatives and strategies that

could help you buy the home of your dreams. Some examples include:

• Special first – time homebuyer program.

• Co-mortgage financing.

• Debt consolidation counseling.

In order to be pre-qualified, the Lender will need to know the following:

• Your employment history and income.

• Your monthly debts and obligations.

• The amount and source of cash available for down payment and closing costs.

When you are pre-qualified by a Mortgage Company, you’ll receive a FREE Pre-

Qualification Certificate to give to your Realtor®. The Seller may be more likely to accept your offer because you have been qualified to buy their home.

THE LOAN PROCESS

Step 1 – The Loan Application The key to the loan process going smoothly is

the initial interview. At this time, the Lender obtains all pertinent documentation so unnecessary problems and delays may be avoided. The Realtor® opens escrow with the title company at this time as well.

Step 2 – Ordering Documentation Within 24 hours of application, the Lender

requests a credit report, an appraisal on the new property, verifications of employment and funds to close, mortgage or landlord ratings; a preliminary report and any other necessary supporting documentation.

Step 3 – Awaiting Documentation Within 1-to-2 weeks, the Lender begins

to receive the supporting documentation. As it comes in, the Lender checks for any problems that might arise and requests any additional items needed.

Step 4 – Loan Submission Once all the necessary documentation is in, the loan

processor assembles the loan package and submits it to the underwriter for approval.

Step 5 – Loan Approval Loan approval generally takes 1-to-3 days. All parties

are notified of the approval and any loan conditions which must be cleared before the loan can close. The loan approval is the beginning of the closing process.

Step 6 – Documents are Drawn Within 1-to-3 days after loan approval, the

loan documents (including the note and deed of trust) are completed and sent to the escrow holder. The escrow officer will make an appointment for the borrowers to sign the final documents. At this time, the borrowers are told how much money they will need to bring in to close the loan. Payment must usually be made by a cashiers check.

Step 7 – Funding Once all parties have signed the loan documents, they are

returned to the Lender who reviews the package. If all the forms have been properly executed, a check is issued to fund the loan.

For more related stuff visit Home Buying Process, who pays what?

Step 8 – Recordation Upon receipt of the loan funds, the title company will record the legal documents necessary to transfer the property into the Buyer’s name. At the same time, the deed of trust is recorded to show the new loan on the property. Escrow is now officially closed and you now own your home. Please consult your Mortgage consultant for more detailed information regarding your loan.

 

June 17, 2018

Home Buying Process, who pays what?

home buying process, buy a home, loan fees, homeowner, closing costs

WHO PAYS WHAT?

THE SELLER CAN GENERALLY EXPECT TO PAY FOR:

Real Estate Broker’s commission

• Due and payable property taxes, bonds, assessment

• Prorated taxes, interest, rent HOA dues (could be credit or debit)

• Payoff of all loans, other liens and judgments of record against the

property (except those to be assumed by Buyer) including, but not

limited to; accrued interest, demand/statement fee, re-conveyance fee,

forwarding fee, late fees/prepayment penalty, if any

• Loan fees required by the Buyer’s Lender (specifically on FHA & VA loans)

• Homeowner’s Association transfer fee, document fee and demand fee

• Pest control inspection reports and cost for repairs

• Home warranty plan

• Title insurance premium for Owner’s Policy

• Escrow fee (Seller’s portion)

• Document preparation fee for Grand Deed and other recordable

document(s) prepared for Seller’s benefit

• Demand processing fees

• Notary Public fees ($10.00 per signature to be notarized)

• Document signing service, if requested

• Documents recording charges

THE BUYER CAN GENERALLY EXPECT TO PAY FOR:

• County Transfer Tax ($1.10 per $1,000 of sales price)

• City Transfer Tax (varies by city)

• Prorated taxes, interest, rent HOA dues (could be credit or debit)

• Payable taxes (not yet delinquent) required to be paid in advance

by Lender

• Inspection fees (physical, roofing, geological, etc.)

• New financing costs, fees, pre-paid interest and impounds, if any (except

those costs to be paid by Seller, as required by Lender or as negotiated

in Purchase Agreement) or Assumption costs if existing financing is to be

assumed by Buyer.

• Hazard insurance premium – year paid in advance

• Title insurance premium for Lender’s Policy

• Escrow fee (Buyer’s portion)

• Document preparation fee for documents prepared for Buyer’s benefit

• Notary Public fees ($10.00 per signature to be notarized)

• Document signing service, if requested

• Special delivery/courier fees/wire transfer, if utilized

• Document recording charges

Related Source: Home Buying Inspection Process.

June 17, 2018

Home Buying Inspection Process

home inspection, home buying, inspection tips, contingency

 

INSPECTION PROCESS

During the contingency period, the Buyer or Seller will order

physical inspections as specified in the Purchase Agreement.

Legislation mandates (under Civil Code 1102) that the Seller has

the responsibility to reveal the true condition of the property on

a Transfer Disclosure Statement. This may help determine what

kind of property inspections are desired or necessary.

?

Who Pays ? Your Purchase Sale Agreement

will specify who is responsible for the costs

of inspections and for making any needed

corrections or repairs. It is negotiable between

the parties and should be considered carefully.

Your agent will advise you what is customary

and prudent.

Structural Pest Control

Inspection. A licensed inspector will

examine the property for any active

infestation by wood destroying organisms.

Most pest control reports classify conditions

as Section I or Section II. The inspection and

the ensuing Section I repair work is usually

paid for by the Seller. Section II preventative

measures are generally negotiated, and not

necessarily completed.

Section I Conditions are those currently

causing damage to the property. These

conditions generally need to be corrected

before a Lender will make a loan on a home.

Section II Conditions are those not

currently causing damage but which are

likely to, if left unattended.

 

Home Inspection. This inspection

may encompass roof, plumbing, electrical,

heating, appliances, water heater, furnace,

exterior siding, and other visible features of

the property. A detailed report will

be written with recommendations and

pictures which may include the suggestion

to consult a specialist (such as a structural

engineer or roofing contractor). The

inspection fee is usually paid by the Buyer.

Geological Inspection.

 

You may also like to visit Home Buying Process, San Diego California.

 

If requested, a

soils engineer will inspect the soil conditions

and the stability of the ground beneath the

structure, as well as research past geological

activity in the area. You may also elect to

go to the city and research the property’s

proximity to known earthquake fault lines.

Typically, the Buyer pays for this inspection.

June 17, 2018

What is Title Insurance?

 

 

 

home buying process,title insurance, escrow, title, realtor

TITLE INSURANCE

In California, most real estate transactions are closed with the

issuance of a title insurance policy in favor of the owner, the

Lender or both. Many home buyers erroneously assume that

when they purchase a piece of real property, possession of

the deed to the property is all they need to prove ownership.

Not so, because hidden hazards may attach to real estate.

Forgeries, faulty surveys, hidden liens, the false representation

of ownership of a married person as being single are just

a few examples of factors which may cloud the title to real

property ownership. A property owner’s greatest protection is

a policy of title insurance.

WHAT IS TITLE INSURANCE?

Title insurance insures property owners that they are acquiring marketable

title. Unlike casualty insurance (policies which insure against future events),

title insurance is designed to eliminate risk or loss caused by defects in title

from past events. Title insurance provides coverage only for title problems.

A title insurance policy is a contract of indemnity which insures against loss if

the title is not as reported; and if it is not and the owner is damaged, the title

policy covers the insured for his/her loss up to the face amount of the policy.

TITLE SEARCH

Issuing a title policy is an extensive and exacting process. Title companies

work to eliminate risks by performing a painstaking search of the public

records or the title company’s own “plant,” where public records pertaining to

the property and the parties to the escrow are maintained, to determine the

current recorded ownership, any record liens, encumbrances, or other matters

of record which could affect the title to the property. Once a title search is

complete, the title company issues a preliminary report detailing the current

vesting, description, taxes and exclusions from coverage.

PRELIMINARY REPORT

The preliminary report contains vital information which includes ownership of the

subject property, the manner in which the current owners hold title, matters of

record which specifically affect the subject property or the owners of the property

as well as a legal description of the property and an informational plat map.

WHAT TO LOOK FOR

The Buyer and Realtor® should review the preliminary report as soon as it

arrives, with particular attention to certain areas:

• Verify the ownership vesting. Be certain the names on the report are

the same as the names on the purchase contract. Sometimes the name of

an unexpected owner will appear (e.g. a previous spouse or relative who

died), and corrective documents may be required.

• Verify the property address. The plat map and legal description should

match the address. An owner could own two properties adjacent to or

across the street from each other, causing confusion in identifying the

correct property.

• Carefully review the exceptions. Common exceptions include current

taxes, bonds, deeds of trust, Mello-Roos assessment district items,

CC&Rs and easements. Be sure the CC&Rs or existing easements do not

interfere with the Buyer’s future plans. For example, an easement across

the backyard could have a profound effect on the Buyer’s ability to add a

swimming pool later.

• Always look for surprises. If you cannot locate an easement; if an

unexpected deed of trust shows up; if you see an item you weren’t aware

of before, immediately call the escrow officer or title company to discuss

the matter. The title company should be a problem solver, and top notch

escrow officers and title officers go out of their way to resolve quickly the

majority of “red flag” areas. However, the responsibility for early detection

and resolution of problems falls on the entire escrow team: the Realtors®,

the escrow and title companies and the Buyers and Sellers as well.

WHAT IS COVERED?

Here are just a few of the many title risks covered in the California Land Title

Association (CLTA) standard coverage policy in the event of a loss including a lack of a right of access to and from the land and a number of recorded defects:

• A forged signature on a deed

• Impersonation of the real owner

• Mistakes in interpretation of wills or other legal documents

• Deeds delivered without the consent of the owner

• Undisclosed or missing heirs

• Deeds and mortgages signed by persons of unsound mind, by minors,

or by persons supposedly single but actually married

• Recording mistakes and missed recorded documents

• Falsification of records

• Errors in copying or indexing

In addition to indemnifying the insured against losses which result from

a covered claim, the policy also provides for legal fees and defense cost

incurred in handling claims against the property.

Extended owner’s and lender’s policies provide broader coverage and are

available in the American Land Title Association (ALTA) policy. Coverage

is extended to certain matters that are off-record but which are generally

discoverable by an inspection or survey of the property, or by questioning

the parties in possession, such as:

• Unrecorded liens and encumbrances

• Unrecorded easements

• Unrecorded rights of parties in possession

• Encroachments, discrepancies or conflicts in the boundary lines

ALTA policies are available for lenders or owners, and a “plain language” ALTA

residential policy is also available for owner-occupied residential property of

one-to-four units.

Realtors®, Buyers and Sellers should not assume that all title policies and title

companies are the same. They’re not, and it is important to ask questions

of your title company to determine the type and cost of coverage available.

COMMON WAYS OF HOLDING TITLE

How should I take ownership of the property

I am buying? This important question is one

California real property purchasers ask their

real estate agent, escrow and title professionals

every day. Unfortunately, while these

professionals may identify the many methods

of owning property, they may not recommend

a specific form of ownership, as doing so may

constitute practicing law.

Because real property has become increasingly more valuable,

the question of how parties take ownership of their property has

gained greater importance. The form of ownership taken – the

vesting of title – will determine who may sign various

documents involving the property and future rights of the

parties to the transaction. These rights involve such matters as:

real property taxes, income taxes, inheritance and gift taxes,

transferability of title and exposure to creditors’ claims. Also,

how title is vested can have significant probate implications

in the event of death. The California Land Title Association

(CLTA) advises those purchasing real property to give careful

consideration to the manner in which title will be held. Buyers

may wish to consult legal counsel to determine the most

advantageous form of ownership for their particular situation,

especially in cases of multiple owners of a single property.

The CLTA has provided the following definitions of common

vestings as an informational overview only. Consumers

should not rely on these as legal definitions. The Association

urges real property purchasers to carefully consider their

titling decision prior to closing, and to seek counsel should

they be unfamiliar with the most suitable ownership choice

for their particular situation.

Sole Ownership

Sole ownership may be described as ownership by an

individual or other entity capable of acquiring title. Examples

of common vesting cases of sole ownership are:

1. A Single Man or Woman: A man or woman who is not

legally married or in a registered domestic partnership. For

example: Bruce Buyer, a single man.

2. A Married Man or Woman As His or Her Sole & Separate

Property: A married man or woman who wishes to acquire

title in his or her name alone. The title company insuring

title will require the spouse of the married man or woman

acquiring title to specifically disclaim or relinquish his or

her right, title and interest to the property. This establishes

that both spouses want title to the property to be granted to

one spouse as that spouse’s sole and separate property.

For example: Bruce Buyer, a married man, as his sole and

separate property.

3. A Registered Domestic Partner As His Or Her Sole &

Separate Property: A registered domestic partner who

wishes to acquire title in his or her name alone.

The title company insuring title will require the domestic

partner of the person acquiring title to specifically disclaim or

relinquish his or her right, title and interest to the property. This

establishes that both registered domestic partners want title to

the property to be granted to one partner as that persons sole

and separate property. For example: Bruce Buyer, a registered

domestic partner, as his sole and separate property.

Co-Ownership

Title to property owned by two or more persons may be

vested in the following forms:

1. Community Property: A form of vesting title to property

owned together by husband and wife or by registered

domestic partners. Community property is distinguished

from separate property, which is property acquired before

marriage or before a registered domestic partnership, by

separate gift or bequest, after legal separation, or which is

agreed in writing to be owned by one spouse or registered

domestic partner.

In California, real property conveyed to a married person,

or to a registered domestic partner, is presumed to be

community property, unless otherwise stated. Since all

such property is owned equally, both parties must sign all

agreements and documents transferring the property or

using it as security for a loan. Each owner has the right to

dispose of his/her one half of the community property, by will.

For example: Bruce Buyer and Barbara Buyer, husband and

wife, as community property.

2. Community Property With Right Of Survivorship:

A form of vesting title to property owned together by

husband and wife or by registered domestic partners. This

form of holding title shares many of the characteristics of

community property but adds the benefit of the right of

survivorship similar to title held in joint tenancy. There may

be tax benefits for holding title in this manner. On the death

of an owner, the decedents interest ends and the survivor

owns the property. For example: Bruce Buyer and Barbara

Buyer, husband and wife, as community property with right

of survivorship.

3. Joint Tenancy: A form of vesting title to property owned by

two or more persons, who may or may not be married or

registered domestic partners, in equal interests, subject to

the right of survivorship in the surviving joint tenant(s). Title

must have been acquired at the same time, by the same

conveyance, and the document must expressly declare

the intention to create a joint tenancy estate. When a joint

tenant dies, title to the property is automatically conveyed by

operation of law to the surviving joint tenant(s). Therefore,

joint tenancy property is not subject to disposition by will. For

example: Bruce Buyer, George Buyer, as joint tenants.

4. Tenancy in Common: A form of vesting title to property

owned by any two or more individuals in undivided fractional

interests. These fractional interests may be unequal in

quantity or duration and may arise at different times. Each

tenant in common owns a share of the property, is entitled

to a comparable portion of the income from the property

and must bear an equivalent share of expenses. Each co-tenant

may sell, lease or will to his/her heir that share of the

property belonging to him/her. For example: Bruce Buyer,

a single man, as to an undivided 3/4 interest and Penny

Purchaser, a single woman, as to an undivided 1/4 interest,

as tenants in common.

 

Other ways of vesting title include as:

 

1. A Corporation*: A corporation is a legal entity, created

under state law, consisting of one or more shareholders but

regarded under law as having an existence and personality

separate from such shareholders.

2. A Partnership*: A partnership is an association of two

or more persons who can carry on business for profit as

co-owners, as governed by the Uniform Partnership Act.

A partnership may hold title to real property in the name of

the partnership.

3. Trustees of a Trust*: A trust is an arrangement whereby

legal title to property is transferred by the grantor to a person

called a trustee, to be held and managed by that person for

the benefit of the people specified in the trust agreement,

called the beneficiaries.

4. Limited Liability Companies (LLC)*: This form of

ownership is a legal entity and is similar to both the

corporation and the partnership. The operating agreement

will determine how the LLC functions and is taxed. Like the

corporation, its existence is separate from its owners.

* In cases of corporate, partnership, LLC or trust ownership,

required documents may include corporate articles and

bylaws, partnership agreements, LLC operating agreements

and trust agreements and/or certificates.

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June 17, 2018

LIFE OF A HOME PURCHASE & SALE TRANSACTION

LIFE OF A PURCHASE & SALE TRANSACTION

It all begins with the offer and acceptance skillfully negotiated by the Realtors® representing Buyer and Seller.

Buyer• Submits a written offer to purchase (or accepts the

Seller’s counter-offer accompanied by a good faith

deposit amount.

• Applies for a new loan by submitting all required

forms & often pays certain fees such as credit report

& application costs.

• Approves the preliminary report & any property,

disclosure or inspection reports called for by the

purchase & sale agreement, (Deposit Receipt).

• Approves & signs the escrow instructions, new loan

documents & other related instruments required to

complete the transaction.

• Fulfills any conditions contained in the contract,

lender instructions and/or the escrow instructions.

• Approves any final changes by signing amendments

in the escrow instructions or contract.

• Deposits sufficient funds in the escrow to pay the

remaining down payment & closing costs.

Lender (when applicable)

• Accepts the loan application & related documents

from the Buyer(s) & begins the qualification process.

• Orders & reviews the property appraisal, credit report,

verification of employment, verification of deposit(s),

preliminary report & other related information.

• Submits the entire package to the loan committee

and/or underwriters for approval.

• When approved, loan conditions & title insurance

requirements are established.

• Informs Buyer(s) of loan approval terms,

commitment expiration date, & provides a good faith

estimate of the closing costs.

• Deposits the new loan documents & instructions with

the escrow holder for Buyer’s approval & signature.

• Reviews & approves the executed loan package &

coordinates the loan funding with the escrow officer.

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Escrow officer

escrow officer

• Receives order for the title & escrow services for

Title365.

• Accepts Buyer’s earnest money deposit. Orders the

title search & examination on the subject property

from Title365’s title officer.

• Acts as the impartial “stakeholder” or depository,

in a fiduciary capacity for all documents & monies

required to complete the transaction per written

instructions of the principals.

• With the authorization from the real estate agent or

principal, orders demands on existing deeds of trust

& liens or judgments, if any. For assumption of

loan by Buyers, orders the beneficiary’s statement

or formal assumption package.

Also check home-buying-first-time-buyer-realtor.

• Reviews documents received in the escrow:

preliminary report, payoff or assumption statements,

new loan package & other related instruments.

• Reviews the conditions in the Lender’s instructions,

including the hazard & title insurance requirements.

• Prepares the escrow instructions & required documents,

together with a preliminary estimate of settlement

charges, for the Buyer & Seller, in accordance with

the terms of the purchase & sale agreement.

• Presents the instructions, documents, statements,

loan package(s), estimated closing statements

& other related documents to the principal(s) for

approval & signature.

• Reviews the signed instructions & documents, returns

the loan package, & requests the lender’s funds.

• Determines when the transaction will be in the

position to close & advises the parties.

• Assisted by title personnel, records the deed, deed

of trust & other documents required to complete the

transaction with the County Recorder & orders the

title insurance policies.

• Closes the escrow by preparing the final settlement

statements, disbursing the proceeds to the Seller,

paying off the existing encumbrances & other

obligations. Delivers the appropriate statements,

funds & remaining documents to the principals,

agents and/or lenders.

Seller• Submits documents & information to escrow holder,

such as: addresses of lien holders, tax receipts,

equipment warranties, home warranty contracts, any

leases and/or rental agreements.

• Orders inspections, receives clearances & approves

final reports and/or repairs to the property as

required by the terms of the purchase & sale

agreement (Deposit Receipt).

• Approves & signs the escrow instructions, payoff

demands, grant deed & other related documents

required to complete the transactions.

• Approves any final changes by signing amendments

to the escrow instructions or contract.

• Reviews documents received in the escrow:

preliminary report, payoff or assumption statements,

new loan package & other related instruments.

• Reviews the conditions in the lender’s instructions

including the hazard & title insurance requirements.

Title officer

• Examines the title to the real property & issues a

preliminary report.

• Determines the requirements & documents needed

to complete the transaction & advises the escrow

officer and/or agents.

• Reviews & approves the signed documents, releases

the order for title insurance prior to the closing date.

• When authorized by the escrow officer, the title officer

records the signed documents with the County

Recorder’s office & issues the title insurance policies.

 

June 17, 2018

Homes Buying Process, Who is who?

WHO’S WHO?

Professionals involved in your transaction.

REALTOR® A licensed real estate agent and a member of

the National Association of Realtors, a real estate trade

association. Realtors also belong to their state and local

associations of Realtors.

LISTING AGENT The listing agent or broker forms a

relationship with the homeowner to sell the property and place

the property in the Multiple Listing Service.

BUYER’S AGENT A key role of the Buyer’s agent or broker

is to work with the buyer to locate a suitable property and

negotiate the home purchase.

TITLE OFFICER A title officer carries out the title search

and examination, takes any necessary corrective action and

provides the policy protection to secure a clean title.

Title Officer

ESCROW OFFICER An escrow officer leads the facilitation

of your escrow, including escrow instructions preparation,

document preparation and funds disbursement.

Appraiser Before you can get a loan, the bank will have

an appraiser look at the home and decide if it’s really worth the

money you’re planning to spend. Many homeowners hire their

own appraisers to make sure they’re getting the best value.

Mortgage broker or lender A mortgage broker

will find you the best loan and lender to fit your needs. The

financing aspect of your home purchase may begin before you

find an agent with a loan pre-approval.

MULTIPLE LISTING SERVICE (MLS) The MLS is a

database of properties listed for sale by Realtors who are

members of the local Association of Realtors.

Related stuff: Home Buying Process, who pays what?

June 17, 2018

Home Buying Process, San Diego California

Home Buying Process, San Diego California

BUYING PROCESS

1. Get Pre-Qualified by Lender

• Obtain pre-qualification letter.

2. Property tours

• Tour homes that suit your needs and preferences.

• Educate yourself about the current housing market.

3. Target an IDEAL home and write an offer

• Deliver your earnest money deposit (this check will be

held until there is a ratified contract).

4. Present the offer

• Your Realtor® will prepare a presentation highlighting the

benefits of your offer and your strength as a buyer.

• Your Realtor® will present the offer to the sellers and the

sellers’ agent.

• The sellers will either accept the offer, counter your offer,

or reject it.

5. Counter offer

• Your Realtor® will discuss the counter offer and how it

relates to your goals and prepare a response.

6. Escrow

• When the offer has been accepted and signed by all

parties, your Realtor® will open escrow with Title365.

• Your earnest money will be deposited at this time.

• The escrow officer will order a Preliminary Report

and send copies to your agent and lender.

7. loan application

• Submit a completed loan application to the lender

of your choice and provide the lender with all the

necessary documents.

8. Contingency period

• Buyer’s approval of seller’s Real Estate Transfer

Disclosure Statement.

• Buyer’s approval of Preliminary Report.

• Physical inspections/pest inspections.

• Property appraisal and loan approval.

9. Homeowners insurance coverage

• Select an insurance company and discuss coverage.

• Give insurance agent information to escrow; Escrow

will need to order a copy of the policy for the new lender

prior to escrow closing.

10. Signing documents

• Your lender will send the loan documents directly

to Title365.

• You will receive copies of title documents and

lender documents.

• You will need a current photo I.D.

11. Down payment and closing funds

• Submit a cashiers check to Title365 several days prior

to closing.

• The escrow officer will provide a Buyer’s Estimated Closing

Statement which will itemize your costs and credits with

an estimate of total moneys due.

12. Funding

• The lender will send funds to Title365.

13. Close of escrow

• The deed will be recorded at the County Recorder’s

office by Title365 (you will receive the original back from

the County Recorder in approximately six weeks).

• Your Realtor® will coordinate with you the transfer of the

keys and delivery of possession.

 

June 13, 2018

Drone Quote Roof

Drone Quote Roof

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