Is this a Buyer’s Market?
Yes and No. Buyers are able to purchase a home that may have previously been out of their price range. Buyers may also get Sellers/Banks to contribute to the paying of their closing costs, as well as a low purchase price. Buyers in the Central Valley may also have to compete on bidding for a home, even if it’s not at auction. So Buyers may have to pay over the asking price of a home to win the offer.

How much are closing costs?
Of course, your costs will vary depending on your credit, FICO scores and type of loan. In general, 4 percent of the purchase price is a good gauge to use. That does NOT include your down payment.

How long does it take to purchase a home?
After you place an offer, it can take from 3 days to 2 weeks to receive a response from a Bank Seller. Another week can pass before you receive the bank addendum for signatures and escrow is opened. Escrows generally last 45 days for financed property and 15 days for cash transactions.

Do I need to talk to a lender before or after I find the house I want?
Always talk with a Lender before you purchase. All offers require a pre-approval letter to be included with the offer for purchase. The Lender can also advise your Realtor how to format the offer for you to best fit your loan requirements.

How do Realtors get paid?
Realtors are paid on commission only. In our area, the Seller pays the commissions for both the Listing and Selling Agent.

Why do we need to pay for Title Fees?
Title fees are paid as insurance to protect the Buyer from any unknown liens that may be held against the property. Liens on a property follow the property, not the owner. The owner in possession of the property is responsible for the bills and liens. If a lien is discovered later, the title company insurance will pay off the lien for you.

Why do we pay Escrow Fees to the same company?
In some places, title and escrow are separate companies. In our area, they tend to take place within the same company. Escrow fees are the fees billed so that the escrow company can act as a neutral third party to the purchase transaction. They monitor the transaction and hold all monies for both parties. They disburse the funds and see that the legal paperwork is properly submitted and recorded for all parties.

Why do I sign an Agency Agreement with a Realtor?
A Realtor is obligated by law to use the utmost care, integrity, honesty and loyalty in dealings with their client. It is important for all parties in a transaction to understand who is being represented and by whom.

Why pay for a home inspection if I’m buying an “as-is” property?
“As-is” does not mean, “unknown”. You have a right and an obligation to investigate the property you are going to purchase. If any conditions are found to be unsatisfactory, beyond what you expected or can accept, you may still cancel the contract.

What is the basic difference between Conventional and FHA Loans?
FHA = A minimum down payment of 3.5% down. It requires mortgage insurance and certain health and safety conditions to be met on the qualifying home. Conventional = A minimum down payment of 10% . If 20% down payment is achieved, there is the possibility of removal of the mortgage insurance. Less conditions & paper work needed than FHA.

What is the First Time Homebuyer Tax Credit?
For more information see the IRS website at: www.irs.gov