NEW California Mortgage Fraud Laws
Finally.
Some new laws have been passed in California to better protect consumers against mortgage fraud, which is rampant (I understand CA has the 4th highest % of mortgage fraud).
If you are in the process of shopping for a mortgage, this is a MUST READ to educate yourself aboutthe laws that protect you.
Use Your Common Sense, and Others Too
I realized that I wrote this article some time ago that I didn’t share here.
I think it’s an important one.
Buyers, especially folks going at it for the first time, sometimes just don’t use their common sense. It’s easy to get swayed by a beautiful home, or turned off by an ugly one, without using your common sense about what really is important and what your ultimate goal is.
But in this market of short sales, REOs and sellers who just may not give a hoot about how their home looks, using ALL YOUR SENSES makes, well, sense (cents??).
Read on to learn more how and why YOU better come to your senses while house hunting.
Check Out the HOA Before You Buy
Buyers who are purchasing condos or homes in communities where there is an Home Owner’s Association MUST take the time to thoroughly investigate the HOA, for a variety of reasons.
One of the biggest concerns may be an HOA that is involved in some form of litigation, which can impact your ability to get a loan on a home in that complex.
READ MORE:
Carlsbad Buyers Beware – Check Out the HOA Before You Buy (which of course can apply anywhere)
First Time Buyers – What Are You Missing in Your Home Search?
Believe it or not you may be missing some things in your home search.
This is especially true if your interest, or budget, puts you in front of a lot of short sale and REO (foreclosure or bank-owned) homes.
And it may not be what you think.
Read more about buying a short sale or REO – What Am I Missing?
What You Should Know About Homeowner’s Insurance
If you are buying a new home, you will be required by the lender to have homeowner’s insurance, the purpose of which, in part, is to protect the lender’s collateral. No insurance, no closing.
If the home is a condo, then there should be a master insurance plan for the complex and that may be all you need, but check with your lender – you pay for your portion of this insurance in your monthly HOA fees. It is still prudent to also have a homeowner’s policy to cover the cost of your appliances, the walls, flooring and all your personal stuff.
If you are buying a single “family” home, then you will need to:
- Make sure the home is insurable during the contingency period as stipulated in your contract [this may vary in states outside CA] by checking with a insurance company (perhaps one you already use), and
- Obtain a 1-year paid in advance insurance policy with a binder (the receipt) to provide proof of coverage at the time of closing.
You should also know that some insurance companies perform on-site inspections of the home before they will set up a policy (AAA for one) and more and more are doing so because of problems with under-insurance, existing damage (e.g., REOs and short sales), potential liability issues (pools, spas, tennis courts), and to make sure the cost of replacement is accurate (if there are lots of upgrades but these are not part of the policy, your replacement cost will be less…a big problem).
Links to Help You Research Schools, Communities, Crime and the Housing Market
If you are buying your first home you are very likely spending a lot of time researching on the Internet. And why not? There’s a ton of information there.
Are You Researching on the Internet? You Should Be!
The things that tend to be of interest, apart from listings, of course, are schools, communities, crime and the housing market itself.
I wrote a recent article for relocations, providing a bunch of links to various sites in these areas. But you might find this resource useful as well.
READ MORE: Internet Aids for Helping You in Your Relocation to Carlsbad
Of course this information can be useful no matter what community you are interested in.
If I can help further, just let me know.
***********************************
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
Why is the Contingency Period Important?
Views of the master planned community of Calavera Hills in east Carlsbad
As a buyer of a condo or a detached home in California, the standard contract provides for a CONTINGENCY PERIOD during which you have the opportunity to perform your due diligence. The reason this is important is that you want to make sure you learn as much as you can about the property you are buying so you can make an informed decision.
The default time period is 17 days (starting the day after contract acceptance) but this can be negotiated up or down. Since buyers normally make their offers contingent on a number of things (e.g., inspection, bank appraisal, obtaining a loan commitment) the contingency period allows you to investigate the property and all available reports, and provides you with ample time to satisfy all the terms and conditions of your contingencies.
At the end of the contigency period you are required to either remove the contingencies and move ahead with the deal or withdraw. In this market some buyers wish to leave the loan contingecy in place until it is actually funded given the problems we have seen with some banks failing to fund at the last minute, this should be part of your negotiations up front. Failure to follow the terms and conditions of the written contract can put your deposit in jeopardy.
***********************************
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
More Thoughts on HOA Fees
Ya gotta love ‘em if you are buying a condo, since you don’t have a choice.
AND they can sometimes be pretty hefty – so watch the MLS listings (or ask your Buyer Agent) so you are not too surprised. In our area here in Southern California HOA fees in condo associations typically range from perhaps the mid $100s to over $300 per month (and well in the $500s for higher-end complexes). These are not tax deductible so you need to factor these costs into your budget (and the bank doing your pre-approval and your loan will as well).
HOA fees can cover all sorts of things, although buyers often feel they are not getting a lot for the fees they are paying. And in some complexes that does appear to be the case. Usually exterior building maintenance is included, as is grounds maintenance. Perhaps also water and sewer, and the association will have a master insurance plan to cover the building exteriors and common areas. If the HOA is professionally managed the fees for those services are also part of the HOA fees you pay. If there is a pool, a garage, elevators, tennis courts, an electronic gate, and other amenties then you are paying for these as well.
Keep in mind these are not negotiable since they are set by the HOA not the seller. Also know that they will go up over time, and in some cases a special assessment may be needed for repairs if there is not enough money in the budget.
When doing your due diligence as the buyer once an offer is accepted, make sure you examine all the HOA documents including the meeting minutes, the budget and accounting, the rules and regulations, and the by-laws. And be sure to ask any questions so you are satisfied.
***********************************
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
Check Out the Agent Before You Buy
My feeling is it is important to check out any agent before you go ahead and hire them to help you find your first home.
The article (link below) was written to assist both buyers and sellers, and is equally important whether you are a first time buyer or a more experienced one. The more you know BEFORE you buy, the better. And there are ways on-line to get the information you need.
Buyers and Sellers: Check Out That Agent Before You Hire
***********************************
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
Before You Open That Refrigerator…
If you are looking at distress sales – short sales, foreclosures, REOs – you may want to read this short article I wrote about my own experience with buyers and opening refrigerator doors. The clues may or may not be there.
WARNING – Don’t Open That Refrigerator
***********************************
If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler
