Posting ID : A1068466067
Date Posted : 2015-08-18
Category : Real Estate Services
Lisa DiNoto Group ?http://www.LisaDiNotoGroup.com
Rancho Cucamonga Home Buying Process 101
Start with OpenHousesYou're ready to start thinking about, thinking about buyinga home, but not quite sure where to start. We at the Lisa DiNoto Group believestarting with your local Open Houses is the absolute best place to get started.As an Open House Home Hunter, as we liketo call it, one can explore different neighborhoods, compare unique homefeatures, and get an understanding for Real Estate values in different subdivisions. It's safe to assume there will be countless weekend Open Housesavailable for viewing in Rancho Cucamonga and the surrounding areas. ViewingOpen Houses does not require one to, be "pre-approved", have an appointment, orbe accompanied by a Realtor. This process can take the stress out off makingan immediate decision to put in an offer on the home or not. As a pre- home buyer, you are really "justlooking". A great practice is to list out 3-5 houses that are showing thisweekend, and take an hour or two to visit these Open Houses. Write down yourfavorite neighborhoods, what your future home has to have, and generalquestions you have about the home buying process.Check out our Open House Weekend List here. We;ve got most of the Inland Empire Open Houses covered for this weekend!"Like" our facebook page here, and keep up with Open Houses weekly.
Get Pre-Approved fora Mortgage LoanSo now that you've seen a few Open Houses, you are excitedabout the next step! During the Open House process, you noticed the "listedprice" of each home, but what kind of down payment is required, and what isyour monthly mortgage payment going to be? These are great questions, and canbe answered by a local lending institution. It is recommended to seek advicefrom at least two lending institutions before deciding on one. We at the Lisa DiNoto Group suggest starting at the mostobvious place, your current banking institution. Most bank branches will have aloan officer on site, or at least one available for an upcomingappointment. The loan officer willexplain the different type of loans (FHA, Conventional, VA, etc. . .) that areavailable to you as buyer, and current interest rates. The loan officer will be able to help narrowdown the perfect loan type for your current financial situation.Next is applying for a loan, or being pre-approved. Here are a fewsteps you can expect during this process. Buyer can expect to:1.Submit aloan application, for each potential buyer.2.Receive a "Good Faith Estimate" from loanofficer with a breakdown of estimated closing costs.3.Submit bank account statements.4.Submit current pay stubs.5.Submit two years of tax returns.6.Submit explanation of any credit inquiries.
Once the loan officer has reviewed the complete financial position,they will issue a loan commitment letter, or pre-approval letter. Keep in mind; this is not a full loan approval letter. Theloan approval will not be issued until there is an executed offer on aproperty, and all contingencies of the offer have been satisfied. We alwaysremind our buyers to keep their current financial situation the same during theentire home buying process. This includes but not limited to, not purchasing anew car, applying for student loans, changing jobs, or maxing out any creditcards.
Hire a RanchoCucamonga Realtor
Now that you are armed with a pre-approval letter and have agood idea of what you are looking for in a new home, it's time to hire a RanchoCucamonga Realtor. The Realtors at theLisa DiNoto Group will set you up with exclusive access to the MLS listingsthat meet your specific needs, review the Residential Purchase Agreement, andwill accompany you on a guided tour of the homes as they become available. You have found the perfect home, presented a great offer,and the Seller's have decided to move forward with opening escrow with youroffer! That's great news, but now what? What is the escrow process? This isoften the question we get right after our Buyer's offer is accepted and escrowis set to open. Get connected with a Rancho CucamongaRealtorhereOpen EscrowBuyer and Seller have agreed to all terms in the RPA (ResidentialPurchase Agreement) and escrow is ready to open. Typically a third party escrow office ischosen by the Seller or Seller's Realtor and an escrow officer is assigned tothe new home purchase transaction. The escrow office and officer take on thefiduciary duty of transferring the property from Seller to Buyer and act as aneutral third party. The escrow officer will generate Escrow Instructions based on the agreed upon terms in the RPA.Buyer and Seller will then approve these terms.
Buyer Submits DepositFundsThe earnest money funds, or deposit, agreed upon in the RPAwill then be delivered into escrow. This can be a personal check from thebuyers mailed in or hand delivered, or a wire transfer can take place. Theearnest money funds need to be delivered to escrow by the third business day ofopening escrow. This is a cruciallyimportant step in the event the earnest money funds do not make it to escrow onagreed upon time; Seller does have the option to cancel transaction. The escrowoffice will then hold the funds in an escrow account for safe keeping. Thedeposit should never go directly to the Seller or the Seller's Realtor.Contingency PeriodEvery escrow transaction will naturally have a contingencyperiod for both Buyer and Seller to satisfy certain aspects within the RPA. A contingency is a future event orcircumstance that is possible but cannot be predicted with completecertainty. As a Buyer, you may openescrow on a home that appears to be in good condition and you are committed tomoving forward with the escrow transaction. However, you will most likely begranted a contingency period tocompletely satisfy yourself with the true condition of the property through variousinspections, reports, and disclosures. On the contrary, the Seller will alsomost likely have a contingency period on the Buyer, allowing time for appraisalto be completed, proof of closing funds to be delivered, and full loanapproval. Contingencies are in place to protect both Buyer and Seller from the"unknown" aspects of the sale of the property.
Review Seller'sDisclosuresBuyer will now review all pertinent information Seller hasprovide regarding the property. Seller's property disclosures along with aNatural Hazard Disclosure, Title Report, and other agreed upon reports shouldbe delivered to buyer within 7 days of opening escrow. At which point, buyer typically has until the17th calendar day of opening escrow to review and approve all disclosuresand reports. This is the optimal time to figure if there is anything negativelyaffecting the property, currently or in the past.
Do a Home Inspection
Al Buyers arerecommended to hire a certified professional to conduct a thorough homeinspection of property. Although Seller will provide disclosures of the home'scondition based on their current knowledge, a Seller may not always know everycircumstance affecting the property. A certifiedprofessional will conduct a detail investigation of the property and will thendeliver a detailed written report to Buyer. It is recommended that Buyer bepresent during home inspection, to become familiar with the property and itscurrent condition. Buyer is now able tomake informed decisions about the property, and request recommended repairs ifnecessary. A Buyer can expect to pay anywhere from $300 -$500 dollarsat time of home inspection. Rates can vary based on size and location of thehome, and if there is a pool and spa to be inspected as well. Although it isnot mandatory for a Buyer to have a home inspection completed, it is encouragedand will be a benefit moving forward through the escrow.
Assuming Buyer willneed a mortgage loan to purchase their new home, an appraisal will benecessary. During the Buyer contingency period, typically 17 days of openingescrow, the Buyer's lender will simultaneously complete a property appraisal.The property appraisal will determine how much money the lender is willing toloan the Buyer in order to purchase the specific home. A certified Californialicensed professional will conduct an appraisal on the property and reporttheir findings to Buyer's lending institution and determine a value forproperty. Purchasing a home will most likely be contingent upon the appraisalcoming back "at value".The appraisal not only protects the lending institution fromloaning out more money than the property may be worth, but it also protects theBuyer from purchasing a home above the current market value. The desiredoutcome for all parties involved is to have the appraisal value come back atthe exact agreed upon purchase price from the RPA. Some appraisals may require specific repairs be made to theproperty before the Buyer's loan can be approved. This will vary heavily, basedon the type of loan that is being obtained, and the current condition of theproperty. These repairs will need to be satisfied, before the loan can close.
Request RepairsNow that all Seller's disclosures, property reports, homeinspection, and property appraisal have been reviewed, Buyer is able to submit toSeller a Request of Repairs based on the findings.This request should typically be present to Seller before the 17thcalendar day of escrow. This will give Seller time to review and respond.Although this is a formal request submitted to Seller, it is merely a request.Seller is not contractually obligated to make any repairs beyond what hasalready been agreed upon in the RPA. The RPA naturally reads that the home isbeing sold in "AS-IS" condition inthe state of California. Should Buyer not be satisfied with Seller's response,Buyer may cancel escrow transaction assuming they are within their agreed uponcontingency period. Should Buyer and Seller agree to terms, escrow willcontinue as laid out in the RPA.***All Buyer andSeller obligatory terms and conditions will be laid out in the California RPA (ResidentialPurchase Agreement). The obligatory time frames in each RPA will vary. The timeframes laid out in this blog are displayed as a "typical guide" and forinformational purposes only. All questions regarding a specific transactionshould be discussed with your Realtor or current legal adviser. AllInformation deemed reliable for the state of California, but not guaranteed.Pictures courtesy of Lisa DiNoto Group, and google.com. Keller Williams Realty: Each office independently owned andoperated.