HAPPY FATHERS DAY!

Escrow, step by step.

The first step in the home buying process is for you to get approved for a home loan.

 

After finding a property that interests you, I will show you the comps (comparable sales) to help us determine the value of the property. The best comps are in the same building (if a condo/townhome) or in the surrounding area (if a single family home or income property).

 

 

Appraisers are generally required to focus on the past 6 months when reviewing area sales so I try to do the same when verifying the property’s value.

 

At this point we are ready to make our offer, which will consist of 4 separate items:

1. The offer contract itself. It is written on a standard California Association of Realtor’s contract, which I complete and then review with you either in person or over the phone. I offer my clients the option of signing electronically, which can save a lot of time and paperwork hassles.

2. A pre-approval letter from your lender (let me know if you would like me to e-mail you contact information for the local lender that my clients most highly recommend).
3. Verification of funds (copies of bank and/or investment statements showing liquid funds to cover the down payment and closing costs).

4. Buyer’s intro letter. This explains who you are, what you do and what you like about the property. I usually write about 95% of this letter for you and then e-mail it to you for final editing and approval.

The offer is presented to the sellers and we wait for their response. Often times they may not sign off on our offer initially but instead write a counter offer which addresses items in the contract that they would like changed (price is the item that is countered most often). It may take several counter offers before the price and terms are agreeable to both parties.

After the offer is accepted, escrow is opened. Escrow is a neutral 3rd party and their job is to make sure all obligations of the contract are fulfilled before the seller gets their money and the buyer gets keys to the property. The most standard escrow length is 30-45 days.

 

I will send a copy of the completed contract to the lender and you will need to promptly provide them with any additional information and/or paperwork that they require. The lender takes care of scheduling the appraisal.

You will schedule the physical inspection with an inspector of your choice. I can give you a list of inspectors that my clients have been very happy with. The physical inspector checks all the major systems in the property (plumbing, electrical, heating, etc) and also looks for cosmetic damage and problems (sloping floors, doors that stick, cracks in walls/ceilings, etc). For a condo/townhome inspection, the inspector only inspects the unit and not the common areas (building, hallways, pool, etc) but if you are purchasing a home the inspection will also check out the exterior (roof, foundation, garage, etc.). I recommend that my clients always get a mold inspection done and if the property has a fireplace then you should also have that inspected. Whenever purchasing a single-family home it is very important to have a sewer inspection. Geotechnical inspections are especially important if you are buying a home in a hillside area. You can also schedule additional specialty inspections if you would like. After reviewing all inspection reports we will usually complete a Request for Repairs form (asking for a credit and/or repairs)… depending on what was found in the inspections.

You will also need to call an insurance company to verify that the property is insurable and get quotes for the cost of insuring the property. For a condo/townhome you are generally just insuring your personal contents (the building is almost always insured by the Homeowners Association).

The other inspections that take place during escrow include the termite inspection, which is usually paid for by the seller. A retrofitting inspection will also take place to make sure the property is up to code with smoke detectors/carbon menoxide detectors, water heater strapping and the gas shut-off valve (retrofitting requirements vary from city to city).

If the property you are purchasing is a condo/townhome, you will receive copies of all the homeowner’s documents to review. You generally have 5 days to review this paperwork which includes: copies of the meeting minutes for the past year, budget and financial information (including the amount currently in the HOA reserves) and a copy of the CC&R’s (Covenants, Conditions and Restrictions).

Loan docs are usually signed as early as a week prior to closing.

Five days or less prior to closing we do a walk-thru of the property. This gives us a chance to verify that any seller repairs were completed and we also make sure the property is in the same condition as is was when we initially wrote our offer.

Two days prior to closing you wire any additional down payment & closing costs to escrow. The loan proceeds are wired to escrow one or two days prior to closing.

On closing day we wait to hear from the title company that you are listed on the county records as the new owner and then you get keys to your new home.

 

 

 

 

Mixed-Use Affordable Housing Headed Towards Expo/Vermont

Although Metro's Expo Line has experienced no lack of proposed office, residential, hotel and retail developments near its Westside stations, investment has noticeably lagged in-between Culver City and Downtown LA.  Well get ready South Los Angeles: Expo/Vermont Station is finally getting some much needed TOD action.  Non-profit organizations T.R.U.S.T. South LA and Abode Communities are partnering on the redevelopment of Rolland Curtis Gardens, a 48-unit affordable housing complex located one block west of Vermont Avenue.  According to an environmental report just released by the city, plans call for the demolition of Rolland Curtis' existing buildings, followed by the two-phased construction of a mixed-use development with 140 affordable residential units and 8,000 square feet of ground floor commercial space.
Residential structures would rise five stories, flanking the southern and western sides of the project site.  Apartments are centered around a grassy courtyard which would serve as both gathering space and a children's play area (see after the jump).  The project also includes multiple community rooms, on-site laundry facilities and parking for 114 vehicles and 154 bicycles.

Commercial space would consist of a one story building stretching along Exposition Boulevard, with proposed uses including a community serving health clinic, non-profit office space, and perhaps some small business retail.  Plans also call for a small amount of surface parking for bikes and cars in the rear of the retail structure.  Buildings would be clad with materials including plaster, smooth finish concrete and metal siding.

According to a document created by the developers, the Rolland Curtis redevelopment is scheduled to begin construction in December 2015, with full occupancy expected in November 2017.  T.R.U.S.T. South LA and Abode Communities shaped the project with input from the community on a variety of subjects, including potential retail tenants, urban design, and architecture.

Ten Steps to Home Ownership

#1 Getting Ready To Buy

Preparing to buy a home can be exciting and terrifying at the same time. Luckily, Bray Real Estate is ready to lead you in the right direction toward the home of your dreams. You first may want to ask yourself:

1. What are you looking for in a new home?
2. How much cash do you want to invest in your purchase?
3. Have you talked with a lender regarding qualifying and obtaining a mortgage?

You may want to make a list or brainstorm about the features and amenities that you find most appealing in a new home.

#2 Finding a Realtor

When choosing a Realtor, do not be afraid to meet with many different agents. They are, after all, competing for your business. This competition is what makes the real estate industry successful.Feel free to ask them the following questions:

1. How many years of experience do you have in this industry?
2. What is your selling experience in my community?
3. What professional certifications do you hold (Accredited Buyer Representative (ABR), Certified Residential Specialist – CRS, Graduate REALTOR® Institute (GRI))?
4. What services will you provide for me as my agent?
5. How will you represent me as a buyer?
6. Can you provide as much information as I need about homes in the area that fit into my price range?
7. What is the fee for your services?
8. Explain the paperwork that I need to sign
9. What is my contracted timeframe for using you as my agent?

Once you have chosen an agent, it is important to establish specific goals that you would like to meet. Communication with your agent is key!

#3 Starting the Loan Process

It is important as a buyer that you establish some kind of financing before you make any serious home offer. The "pre-approval" process allows lenders to take a look at your finances and credit history in order to make a general assumption about your loan amount.
The pre-approval process is when a lender looks at all of your finances and determines the amount of money you could afford for a mortgage.
In order to get pre-approved for a loan, you need to contact a lender. Your agent can help you help you find a lender that you feel comfortable with, and that offers programs best-suited to your needs.

#4 Starting Your Search

Now it is time to start the exciting search for homes!
You may want to narrow down your search by asking yourself the following questions:

1. Where do I want to live?
2. What is the neighborhood like?
3. What is the crime rate?
4. Would I be moving into a good school district?
5. Are there any zoning restrictions?
6. How far is this home from my job?
7. What is my price range?
8. How many bedrooms and bathrooms do I want?
9. What style of house am I attracted to?
10. What amenities do I desire (ex. pool, fenced-in yard, etc.)?
11. Does this home have potential to increase in value?
12. Is there room to expand if we need to in the future?

Searching for a home is becoming easier than years ago. We now have the Internet as a powerful "home finding tool," as well as the MLS (Multiple Listing Service) and print advertising.

#5 Finding Your New Home

Beginning the search for your new home can be a great feeling. It is important that you directly communicate with your real estate agent about the desires you have for your new home.
You may want to first begin by making a list of the features and benefits that are most important in your pursuit of finding a home.
These could be:

1. Location
2. Affordability
3. Size
4. Style
5. Design
6. Amenities

Looking for a home in an area where you feel comfortable is key. If appropriate, instruct your real estate agent to look for homes in the specific areas you have designated.

#6 Making an Offer on a Home

Selecting a home should be relatively easy once a home falls somewhere in your criteria and the property is desirable for purchase.
You will want to inform your real estate agent what you like about the house and make a list of your likes and dislikes with the property. Though you will most likely have done this already in a general sense, it is important to do it again for specific homes you have in interest in.
In the negotiation process you may accept the seller's asking price and have your agent write up the contract or reject the seller's asking price and have your agent make a different offer.

#7 Financing

Doing your homework about loans will save you time and money. There are thousands of loans out there to choose from, but it is important to keep in mind several key factors that will help you along the way:

1. How much money should you put down?
2. How is your credit?
3. Is this your first home?

Receiving a loan requires completion of a loan application and specific financial documents including pay stubs, rental checks and/or tax returns. You can receive a loan from a number of different financial institutions, namely: commercial banks, credit unions, mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks and insurance companies.

#8 Insurance

Insuring your home is like making an investment in your future. You work hard to have a home; homeowners insurance protects you and your family from someone or something taking it all away.
There are many different forms of insurance:
Title Insurance - Protects you in the event that the title on your property has a lien, unpaid taxes, or other legalities that would make it invalid.
Homeowners' Insurance - Protects your home from fire, theft and other liable coverage.
Flood Insurance - Protects your home from flood damage.
Home Warranty - Offers buyers and sellers the peace of mind that should anything unexpected happen (due to normal, every day wear and tear) of the home's appliances, heating, air conditioning, plumbing, and electrical systems, it will be repaired (or replaced in some cases) for you without costly fees.

#9 Closing Procedures

The closing process is always changing. It is even referred to as "settlement" or "escrow" in different parts of the country. With increased technology, most closings are completely automated and both parties do not have to be present at the same time to sign.
Closings usually occurs about 30 days after a contract is signed by both parties. This mainly depends on the buyer's financing availability, successful home inspection completion, and various lender conditions (ex. title search, title insurance, termite inspections, surveys and appraisals).
The closing process is the transfer of the title of the property from the buyer to the seller. The buyer will receive the keys to the home or the deed to the land, while the seller receives payment for the property. The amount the seller receives is based upon the amount that is still owed on the mortgage, any outstanding fees or taxes, and any additional closing costs.
All legal papers are filed with the local record office.
Prior to closing, it is important as the seller to take a final walk through the property to make sure the property's condition as not changed. It is equally important for both the buyer and seller to make sure the paperwork they are signing reflects the agreement of the original sale.

#10 Settling In

You have unpacked your boxes, arranged your furniture, and feel complete with your moving task.
What's next?  Enjoy your new home!

March Newsletter

Arts District Could Get Two New Red Or Purple Line Rail Stops

 

As the Arts District's star has climbed over the past several years—hot restaurants, million-dollar condos, high-end development, even a park—there's been only one thing holding it back: It's pretty damn annoying to get to. And now Metro CEO Art Leahy is looking to fix that, asking staff to look at new rail stations at First and Sixth Streets along already-existing track that runs between Santa Fe and the LA River, from Union Station. He tells the Downtown News the stops could connect to either the Red or Purple Lines. (The under-construction One Santa Fe project at First Street sits on Metro land and there's long been talk of putting a station there, since it's also close to the Red/Purple maintenance yard.) One active neighborhood developers points out that a stop at Sixth Street would be particular great because it would let out right by the future Sixth Street Viaduct replacement, which will be friendly for bikers and pedestrians and surrounded by open space (and create an easy hop to or from Boyle Heights). Leahy made the request about two months ago and staff will check out "costs, location and initial designs." A proposal could reach the Metro board within a year.

January Newsletter