Top 5 Mistakes Home Buyers Make

1. Finding out too late that you have no representation. Make absolutely sure your Agent is your buyer representative!! Take the time to investigate and familiarize yourself with the laws regarding Agency. (When an Agent represents the buyer, that Agent "rejects" the implicit seller agency and thus owes loyalty to the buyer.) Don’t rush out to look at homes, whether in person or on the Internet, and don’t contact the Agent who has the house advertised (who will be the listing Agent and will absolutely represent the seller). Don’t represent yourself in the purchase of a home, thinking that you will save money. This may be the case, but it is just as--or more--likely that you will run into a savvy seller who is looking to keep the commission savings in their pocket rather than give it to you.
   
2. Not knowing how much you can afford before you make an offer. Get pre-approved!! The easiest way to avoid this mistake is to get pre-approved for a mortgage loan by a lender before you start looking. This will allow you to know exactly how much you can afford.
   
3. Not knowing how much credit can affect your ability to buy or refinance a home. Be prepared!! Before you buy or refinance your home, many of the clouds on your credit history can be cleared up and even eliminated. Your mortgage consultant can help you review and prepare your credit file in advance.
   
4. Not comparing mortgage loans. Do your research!! The wrong mortgage can cost you thousands of dollars in needless interest and taxes. There are far too many variables--type of mortgage, term, lender and amount of points to mention a few--not to investigate all of your options. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or on the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation. One option is to check with your accountant for information about the long-term effects on your income.
   
5. Shortcutting the inspection process. Protect yourself!! Do not skip a whole house inspection completely in order to save the relatively small amount of money involved. And don’t use a friend or relative with limited experience to conduct the inspection. In either case you run the risk of not exposing potentially expensive--or even hazardous--defects in the property. Invest the $200 to $500 for a professional inspection. Do a final walk-through after the house is vacant, on the day of closing if possible, and don't let anyone talk you out of it.

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Top 10 Questions Home Buyers Ask

1 When can you tell me the amount of funds required to close escrow?
Upon receipt of your loan documents and preparation of your escrow instructions, we will contact your real estate agent and/or you to let you know the amount of funds you will need to close escrow.
2. Who will call me to schedule an appointment?
Normally, your real estate agent will call you. However, sometimes we will call you from the title company to make arrangements for your signing.
3. Can I give you a personal check?
No, according to California State Law, all funds must be in the form of a cashier's check or via wire transfer. We do, however, accept teller's checks as long as they are drawn from a California banking institution
4. When do I get my keys?
At the close of escrow, your real estate agent will contact you regarding the disbursement of the keys. Usually, this is by noon on the day you close escrow.
5. How much time should I allow for my signing appointment?
Please allow 45-60 minutes for your signing appointment.
6. What will the escrow offer explain to me at my appointment?
Escrow instructions with terms of sale per your purchase contract, the estimated escrow statement, preliminary report, etc. The escrow officer will explain any reports and inspections that may be required on the property. We will also provide you with a complete package of all documents you have signed so that you may take it home for further review. Should you have any questions after reviewing your package, Please do not hesitate to contact your escrow officer.
7. What is a Statement of Information?
Statements of information provide title companies with the information they need to distinguish the buyers and sellers of real property from others with similar names. After identifying the true buyers and sellers, title companies may disregard the judgments, liens or other matters on the public records under similar names.
8. When should I shop for homeowners/fire insurance?
Due to recent natural disasters in our state, we suggest the you start shopping for homeowners/fire insurance as soon as your offer is accepted (it is a good idea to call your current insurer first). Know the age of your home when shopping for insurance. Please have your agent contact your escrow officer when you have made your decision.
9. What will I need to take to the Title Company when I go in to sing my papers?
You will need to bring your cashier's check payable to The Title Company (if the amount was given to you previously). Bring a valid drivers' license, California ID card, valid passport of Military ID.
10. When will I get my deed showing proof of ownership?
The day escrow closes is the day the deed records with the county and you become the owner of your home. It could take 6-10 weeks from that date for the county to mail you the original signed/recorded deed.

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Home Buyers Generally Pays For…

1. Title insurance
   
2. Escrow fees
   
3. Document preparation (if applicable)
   
4. Notary fees
   
5. Recording charges for all documents in buyer's name
   
6. Termite inspection (according to contract)
   
7. Tax pro ration (from date of acquisition)
   
8. Homeowner's transfer fee
   
9. All new loan charges (except those required by lender for seller to pay)
   
10. Interest on new loan from date of funding to 30 days prior to first payment date
    
11. Assumption or charge of records fee for takeover of existing loan
    
12. Beneficiary statement fee for assumption of existing loan
    
13. Inspection fees (roofing, property inspection, geological, etc.)
    
14. Home warranty (according to contract)
    
15. City transfer or conveyance tax (according to contract)
    
16. Fire insurance premium for first year