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This whole process takes about 30 days on the average. You will constantly be updated and we will guide you every step of the way. |
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First, fall in love with your new home. We really want our homeowners to be happy, and feel good about coming home to a warm, inviting place. This has been the key factor for us in building
such an awesome community! |
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Discuss pricing. At different times, the seller may be offering different concessions. This means we may be able to help with closing costs, help you buy a point off your loan, or offer a better deal on the listing price. As more units sell and demand increases, the deal may change.
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IMPORTANT! If you really want to purchase the unit you discussed, time is of the essence. Out of courtesy, we will take the unit off the market and hold it for you for 3 business days so you can talk to a lender to get approved. After the 3 days, if you do not present an offer, the unit is available to the next person.
Also, all pricing/concessions will be subject to change after this period. If you come in at a time where the seller wants to give you a deal, this offer will only be good for 3 business days from when the deal was offered.
If you have your heart set on a unit, let us know before you lose it to someone else! |
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Now that you are armed with the pricing and concession info (if any was given), you will have the necessary information to have a lender start running the numbers for you.
The first thing they will do is approve you for the loan you need. This is based on your credit history, income and amount of down payment you are able to make. We know most first-time home buyers have good credit, good jobs, but not a lot of cash. This is where we can really help, since we have a pool of lenders that can do low down payments (0-5%) with great rates. The lender will ultimately help you come up with a monthly payment including your property taxes and monthly HOA dues.
Remember, as a homeowner, you can write-off the interest on your loan and your annual property taxes. Try doing that with rent! Note: you may use any lender you want, but we qualify you through our lenders since they have already approved this property for loans. (?)
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Make sure they run
those numbers until
you are happy!
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Get a copy of the Final Public Report from the property salesperson, and read it over.
This gives broad strokes of the area, the building, school districts and the legalities concerning the property. This is required by the California Dept. of Real Estate, and you must sign the receipt, acknowledging you received and read this report before we can write up the offer. This report can also be downloaded at our website here. It’s an easy read. |
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Write up a purchase agreement. This is on our website and is approved by the California Department of Real Estate.
Most transactions in California are written up on the C.A.R. (California Association of Realtors) purchase agreement forms, but for a new subdivision, we are required to use this standardized form. It is almost identical to the CAR purchase agreement, but does not conflict with the property CC&R’s (?) - for example, there is no termite inspection addendum because the HOA (Home Owners Association) is responsible for any termite issues, and taxes are prorated a little different since the seller was required to pay all property taxes for each unit through June 2008. |
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Disclose, disclose, disclose. Along with the purchase agreement, you will also be given addendum A and B and 1 to sign and include with the purchase agreement. Addendum A and B covers general disclosures and things we have found on the property that needs to be disclosed. What needs to be disclosed? Basically, if a seller or agent is unsure, that means it needs to be disclosed. This can also be downloaded at our website here. |
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What’s addendum No. 1? Once we open escrow, we then order and put in the new appliances. To ensure everything is hooked up properly and in good working order, we do not want you to order the home inspection beforehand. Addendum No. 1 states that because the unit is being upgraded, the home inspection will be ordered within 5 days after notice is given that the unit is ready. This way, you get your money’s worth. What’s a home inspection? We are not quite there yet… |
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Escrow! The purchase agreement with addendum A, B and No. 1 and the signed receipt from the Final Public Report are delivered to escrow, along with the earnest money deposit. This is also referred to as a good faith deposit, showing you are sincere and serious about the purchase, and this takes the unit off the market.
Normally, this is 3% of the purchase price, but the seller at The Hudson will open escrow with $1000.00 deposit. This check is made out to our escrow company (Glen Oaks Escrow) where it will get logged in, and kept for safe keeping. Basically, it is like you gave it to Switzerland, escrow is neutral territory where the escrow officer now becomes the agent for both the buyer and the seller. Ultimately, this amount will get credited towards the purchase price. |
Our neutral friends, the Swiss!
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Now, you will notice the purchase agreement says at the top: “Joint Purchase Agreement and Escrow Instructions.” This is because upon both buyer and seller signatures, this contract is also now the escrow instructions for the escrow officer to follow. This may include timelines, how funds are dispersed, etc. After escrow opens, no changes can be made without both the buyer and seller signatures. What might change? Maybe a lender needs more time to process your loan, so we would write up an addendum extending the escrow (our escrows are usually 30 days). Both buyer and seller sign this and it is good to go. |
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The escrow officer now shifts into high gear, opening communication channels with the lender and keeping everyone updated. The officer also makes sure we all stay on track and that all the proper paperwork is signed and sent in. |
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It is really not that bad!
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Meanwhile, back at the ranch…more paperwork is being generated!
We are now putting together all the state mandated disclosures both buyer and seller will need to sign. This includes a property questionnaire from the seller, verification that we have complied with all smoke detectors and retrofitting of the water heaters, a Transfer Disclosure Statement (TDS) etc. In a nutshell, you will start to see the same disclosures over and over, but the state of California really wants to make sure the buyer is well informed.
You will also receive a Property Disclosure Report compiled by a third party company, giving more of a geographical and environmental snapshot of your property. Is it in the flight path of an airport? On an earthquake fault zone? In a flood zone? All these questions are addressed. By the way, this property has a checkmark next to “No” going down the whole list! Both buyer and seller sign and get copies of everything. |
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Appraisal. Your lender will schedule an appraisal with the seller to make sure the value of your unit is at least the amount they are funding. The appraiser works for the lender, and usually does not share this info with the buyer and seller. It either appraises for the value or not. Kind of like a pass/fail thing. You do not need to be at the property for this, appraisers like to be left alone. The buyer will generally pay for the appraisal through the lender, included in their fees. |
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Ahh, finally a break! Your unit is being finished with new appliances, new window screens put on, the final fixtures added. You are more than welcome to stop by anytime to measure for your furniture or just to see the place. Now, we are ready for the home inspection.
WAIT! Don’t go out and buy a new car or make any other major purchases during escrow as this may affect your credit score, and the lender may check this again towards the end of escrow- except now, they want to change the terms of the loan on you! Let’s not let that happen. |
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The Home Inspection. We will give you a list of 2-3 reputable companies, or you might know of one yourself. This will cost you from $200-$300 (on the average) and you will arrange a time for them to come by. The home inspector will want you to write them a check at the time of the inspection, so bring your checkbook.
The home inspector will check everything accessible inside your unit, and the a/c unit outside your unit. This is the scope of their work. They check all the outlets, the circuit breaker box, doorways, faucets, plumbing, etc.
Then they write up a report (which they give you at this time) of what they recommend should be addressed, and how immediate that issue is. They also run all the appliances and make sure they are functioning properly. After being through so many of these, we pretty much know what they look for and usually have all things handled before the inspection. Personally, I do not think a lack of doorstops should be an issue, but they write this up, and we usually do not bother putting any on, unless you really want them. |
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Final walk-thru!
Yes, another form to sign. But by now, it has been about 3 weeks and you should have recovered from signing all those other forms.
 This is where we make sure we fixed anything from the home inspection report (that the seller agreed to), and that everything else is looking good. If anything was missed, we will write up a repair report (again signed by both the seller and buyer) and complete that list.
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Your loan docs are ready to sign!
You meet with escrow to sign the loan docs. Lender funds seller for the purchase, escrow writes up settlement statement (how funds get dispersed, who pays for what, etc.) and escrow will now record the deed with the county (usually by the next day). The home is yours! |
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Declare your independence
from paying rent! |
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Anything I should be aware of after the property closes?
Supplemental taxes: In a nutshell, the supplemental tax bill is a one time, maybe twice tax bill you will receive after purchasing a new home.
Here is a good link that explains it in detail:
http://treas-tax.co.nevada.ca.us/regular/taxsup.html |
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