When you select a house that you want, we will discuss the price, terms and contingencies that make up your offer. After we prepare the offer and the other related documents, we sign the Sale Contract. We will present the offer to the Sellers through their Agent. There may be an immediate acceptance or there may be Counter Offer(s). When we come to full agreement, all parties sign the sales contract and counter offers and escrow is "opened." During the escrow period, we will conduct all inspections. Your Lender will: have you fill out the loan paperwork, appraise the property, approve your loan, and then draw loan documents. We will help you every step of the way. We are then ready to close. When a buyer makes an offer, their agent meets with us and presents the offer. We will discuss the price, terms and contingencies that make up the offer. There may be an immediate acceptance or there may be Counter Offer(s). When we come to full agreement, all parties sign the documents. Once all the documents are signed by all parties, we open escrow and the timeframes or "contingencies" begin. All parties will begin removing their contingencies and fulfill their contractual obligations. The buyer´s lender will appraise the property, approve the loan, and then draw loan documents. The Seller will sign the Grant Deed along with the Escrow Instructions. You also will have the Home Inspector, the Appraiser, and the Termite Inspector looking at your house, as well as the Buyer having their "walk through" within a week or so of the closing period. In summary, thank you for letting us be of service to you. Buying your new home through us is a privilege we hope we've earned. We get paid for our services but try to make sure that you get your money's worth. We are not interested in just "selling you a house" or "buying you a new one". We want to earn a permanent business relationship with you, through good service and follow-through. By doing so, when you have an opportunity, you can feel comfortable recommending us. It really is not about us - it's about you!
Suzie Quiring (805) 501-2556 SuzieQ4Homes@aol.com
Glossary of Terms:
Please, ask questions. Remember there aren't any "dumb" questions when buying or selling a home. Barb and I understand that often times our homes are our most valuable assets and we take special care to Always keep that in mind.
Questions that our clients most frequently ask are "What is a trust deed, escrow, title, contingencies, lenders, etc". If you wake up in the middle of the night worrying - don't! Don't call us in the middle of the night either! lol Jot down your question and call us in the morning - we're early risers! Don´t hesitate to ask anything. We work for you. Please stop us if we ever use a real estate term that you are unfamiliar with or uncomfortable. It's important that you understand every step of the transaction.
Contingencies:
These are conditions to be satisfied by a certain date to the satisfaction of the person requesting them. There are usually several contingencies to be met in a sale; generally, the most important ones are loan approval and home inspections.
Escrow:
This means two things: 1) a mutually agreed upon period of time for the Buyer and Seller to perform all of the detail work in the Sales Contract; and 2) the Escrow company itself, which prepares paperwork, handles the title insurance, gets the loan documents signed, receives and pays out money to the correct parties only after all the terms of the sales contract have been fully satisfied.
Home Warranty Plans:
This is a maintenance insurance plan for your home for a one year period. The policy can be, and often is, extended by Buyers after the one year period is over. The policy covers most of the problems that can go wrong with a home during the first year. IT IS VERY IMPORTANT TO UNDERSTAND THAT THEY DO NOT COVER EVERYTHING. READ THE POLICY. THEY MAY EXCLUDE THINGS THAT YOU THINK WOULD OR SHOULD BE COVERED.
If a covered problem occurs, the Buyer calls the warranty company and they send out a repairman. The Buyer pays a small service call fee and the company picks up the rest of the charges to repair the problem or replace the item. We as Realtors must offer these plans by law. We make no profit on them. Who pays for the policy is always negotiable but generally they are paid for by the Seller on the Buyer's behalf and we always ask that they do.
Termite Inspection:
The home that you want to buy will be inspected by a licensed termite professional. The termite inspection will cover the sub area to the attic. The inspector will advise you of any problems with termites, dry rot, or cellulose debris (junk wood under the house that termites can eat), etc. Generally, the Seller will pay for any needed work to get a "clear" termite report. We always include detached garages and decks, etc. The Termite Report will outline recommended work and estimated costs.
Home Inspection:
It is extremely important to get the home inspected by a licensed home inspector who does professional home inspections. They are often times General Contractors with an additinal license to inspect homes. Get a thorough inspection from the foundation to the chimney, with a report of any problems. The home inspection is paid for by the Buyer. "They're worth their weight in gold". If you don't know and inspector, we'll give you a list of local inspectors.
Your Loan:
Your loan is attached to the property through a trust deed. This is a legally recorded lien against the property. When we use the term Lender, it´s a generic term meaning a bank, savings & loan or a mortgage banker or broker. It´s important that you shop for the best loan and we suggest contacting more than one lender. The lender you select should be somebone that you are very comfortable with and someone who will not only explain all the different programs and help you select one that's just right for you, but will answer any questions you have regarding your loan - be very careful choosing a lender through the Internet for this reason. Remember, you're paying for your loan for a very long time and you want to be confident they are working in your best interests and not theirs.
Here's a little more about each type of loan:
ARM's
ARM's (adjustable rate mortgages [loans]) are the easiest loans to qualify for. It is important to understand how these can adjust. These are tied to one of four government indexes, 6-month T-Bill, 1 Year Treasury Securities, 11th District Cost of Funds, and the LIBOR-the London loan index. The middle two are the most popular. The bank takes the index and adds on their margin, or profit. This is the interest rate you pay. The lower the margin the better. This will differ depending on what index you use. Don't be distracted by the initial "teaser" interest rates. Compare the "fully adjusted" rates. These loans can be assumable by the next Buyer.
3, 5, 7, or 10 Year Fixed or Fixed in General
The interest rate is fixed, usually for 3, 5 or 7 years, then it adjusts just like an ARM for the rest of its 30-year loan life. Fixed Loans are loans with the interest rate fixed for 30 or 40 years and do not adjust during the life of the loan. These usually are not assumable by the next Buyer.
PMI
PMI is Private Mortgage Insurance. If you get a loan from the bank greater than 80% of property value, they require you to get PMI. This coverage protects the bank in case you default on the loan. PMI is payable until the loan to value lowers to 80%. However, there are many exceptions to this rule.
Points & Loan Fees
Anytime you hear the word point, just think "percent." 1 point means 1% of the loan amount. While discussing loan fees, you may hear "2 points plus $350.00". This means that bank charges 2% of the loan amount and $350.00
Miscellaneous Loan Fees
Besides the points plus a few hundred dollars, lenders charge for a few other items. Appraisal, Credit Report, Tax Service, etc. are standard ones. You will receive an estimate of these costs from the lender once you have filled out your application -- insist on receiving it in a timely manner so there are no surprises just before closing. How much are these costs? Usually about 3% of your loan although they could be a good deal lower.
Title Insurance:
The buyer´s title insurance is paid by the Seller and the lender´s title insurance is paid for by the buyer to insure proper ownership of the property. The title company will search each property to uncover liens of all types, easements, and any "clouds" or encumbrances on the title so that when it passes to you it has a clean slate. They also make sure any outstanding property taxes owed by the Seller are paid and the old loans are paid off and all liens are removed prior to the actual close of escrow.
Who We Represent, or Agency:
If You Are the Buyer we represent you in the purchase of property. We invest a lot of time and effort to find just the right house for you. If you are out and see a sign or an ad on a property that you like, CALL US. We will get all of the information on it. If you stop by an Open House, just tell the Agent that you are working with Barb & I. They will be very nice and show you through. Let me know if they try to solicit your business because that is unethical behavior on their part. Remember that we can represent you for the purchase of ANY home you see. Don't think we're ever too busy to talk to you - we're not!
If You Are the Seller:
We represent you in the sale of your property. After we establish the fair market value for your property, We list your house and market it in order to attract a buyer.
For Buyers and Sellers
Escrow takes in all the money, monitors the progress of the parties, executes the rest of the documents, arranges for title to transfer to the buyer and pays all the bills. After title transfers from seller to buyer, Escrow is "closed." All costs associated with the sale are then paid. Buyer and seller have different costs to pay associated with their side of the transaction.
Thank you,
Suzie Quiring (805) 501-2556 SuzieQ4Homes@aol.com