FAQ
Answers to most commonly asked questions!
Frequently Asked Questions
We have the answers (well most of them)!
Most of the common questions that you will have are answered in this section. Please reach out to continue the conversation.
What are closing costs?
Closing costs are all the fees associated with the loan process. Closing costs include: earnest money deposit, down payment, title and escrow fees, lender fees, and tax/ insurance impounds. Be aware, some of the closing costs are upfront fees, like an appraisal or home inspection.
What is Home Owner's Insurance?
Home owners insurance is the insurance, like for car, that covers repair and damage to the real property. To illustrate, home owner's insurance would cover the water heater if it became damaged or disabled. Keep in mind, they can have deductibles like car insurance. The point is that this type of insurance protects the home from damage, over-use, and major disasters.
What is Title?
It is important t point out that we will create a team that helps close this real estate transaction and that will include other companies. One company that all RE transactions use is a Title Company. They are responsible for the transfer and completion of Title for the real property. Title is also used to explain the Title report that explains the legal description of the real estate and its legal owner, including APN and plot map (location). It will also include any mineral rights, liens and easements.
What is Home Mortgage Insurance?
Mortgage insurance is a policy that the lender has for the client's loan. It is a safety measure designed to protect the lender in case the loan defaults or we have another major housing recession. PMI is triggered when the equity of the home or Loan-To-Value (LTV) is greater than 80% of the properties appraised value. For example, if you put 20% down on a $500 home, your balance would be $400,000 . This would not trigger MI. On the other hand, you chose an FHA loan and put 3.5% ($17,500) down to purchase the home. You would have a LTV of 96.5% (Balance is $482,500).
How long does a purchase take to complete?
Most purchase loans can be completed within 20-30 days, depending on circumstances and preparation.
How much does it cost to sell your home?
The cost of selling your home can vary between 2-6%. This is usually broken down between the buyer and seller.
When do I get the keys to my new home?
During a purchase transaction, the note and title must be recorded in the county assessors office before the transaction is complete. Once the title has been recorded in the county office, the realtor (selling) will release the keys to the new owner. You will receive your keys after funding and recording.
When do you complete the home inspection?
Home inspections are usually required for all purchase transactions. Keep in mind, the home inspection cost is usually an upfront cost and is paid out of borrowers personal funds outside of the loan.
Contact Info
Austin Lawrence
Call: 415-582-1995
Email: [email protected]
NMLS# 225079
Address:
4401 Hazel Ave., Suite 135
Fair Oaks, CA 95628
EHL NMLS # 1839243
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