FAQ’s

How much money do I need for my down payment?

There are many different loan programs with different down payment requirements.  An FHA loan requires 3.5% of the purchase price as a down payment.  VA loans have a 0 down option (you may still need some money for your deposit and closing costs) Conventional loan programs have many options for down payments some of those are 3%, 5%, 10%, 20% or more.  There are also programs that offer down payment assistance.  The best way to plan and know what program is best for you is to have a short meeting with a trusted lender.  Your real estate agent works closely with many lenders and will be able to recommend one that may be a good fit for you.

Who pays for inspections?

Sometimes the seller has inspections done prior to listing their home; however, in the current market most buyers are paying for their inspections.  Doing inspections is always recommended for the buyer to be fully informed on the condition of the home prior to close of escrow.  There are many different inspections that the buyer can choose to order, some examples are: Home Inspection, Pest Inspection, Roof Inspection, Solar Inspection, Sewer Inspection, HVAC inspection, Septic Inspection, Well Inspection, etc.  Each inspection can cost approximately from $100 to $500.  After receiving the inspection reports, the buyer’s agent should review them with you and discuss any repairs or credits that you would like to request from the seller. 

Who pays for the appraisal?

When a buyer is using a loan to purchase a property, the lender will usually require an appraisal.  Appraisals usually cost $600 or more.  The buyer will usually pay for the appraisal when it is ordered or as part of their closing costs.  Your lender is the best person to verify the cost of your appraisal and when the payment will be due.

What is EMD?

EMD stands for Earnest Money Deposit.  Your EMD is usually 1% of the purchase price and is usually due 3 days after your contract is accepted depending on the terms of your contract. Bankrate.com gives a good definition and explanation at: https://www.bankrate.com/glossary/e/earnest-money/ Depending on your contract, your EMD may be refundable should you cancel based on one of your contingencies with-in the appropriate amount of time. 

Who pays Real Estate Agent commission?

All contracts are different, you should read all contracts and understand the terms before signing anything.  With that understanding, typically in the current market, the seller pays the commission to the seller's agent and the buyer's agent.  Typically, the buyer does not pay the realtor commission.  You must confirm this by reading any contract you sign.

When do I sign with the notary?

Typically, during the last week of your escrow the title company will schedule a signing with a notary.  Remember to bring your Driver’s License or ID to your signing appointment.

When do I get my keys?

Contracts may differ, but typically you will receive keys after the title company records the deed with the county.  This will likely happen with-in a few days of your estimated closing date.  Some contracts may include an early occupancy or a seller rent-back.  If you have any questions regarding getting your keys, you should confirm your contract with your Realtor.

How should I prepare my house for sale?

It is important to talk with your Realtor before investing money to get your house ready for sale.  Your Realtor may be able to guide you to get the most return on your investment.  Some things that you can start on that don’t cost money are: de-clutter, clean up the yard (trim bushes, weed, clean off patio and furniture), deep clean the house, blinds, windows, window tracks, showers, light fixtures, take down personal items, clean-up the entryway for a great first impression.  You should meet with your Realtor at least 2-4 weeks before you want your house to go on the market so there is plenty of time to prepare the home and schedule pictures and video tours.

What should I do if I am considering buying a home, but I am not sure I am ready?

You should let your Real Estate Agent know that you are thinking about buying in the future.  Your agent can explain the buying process to you and help you prepare for your future plans. Your agent can also help you choose a lender that will be able to analyze where you are at currently and give you suggestions to put you in the best scenario when you are ready to buy.