Buying a Home in Los Angeles

While it's true that every real estate transaction is different, there is a logical sequence in the home buying process. Click on the links below to learn about the process.
The Home Buying Process	The Escrow Period and Process
What is All This Paperwork?	Handy Home Buyer Resources
Call Linda at 818-547-4529 or Email Us to find out how we can help make your home buying dreams come true!

Even if you've bought a home before, today's process may seem quite different. If your former home purchase was in another state - or in Northern California - be sure to note the important differences.

Click on the links below to learn about the home buying process in Los Angeles County: Becoming a Smart Home Buyer - In-depth information on getting started in the home-buying process. Tips on Selecting a Buyer Broker. Frequently asked questions and answers about Buyer Brokerage. Determining Your Buying Power - Excellent guide to mortgage financing and different types of loans. How to select a loan type based on financial strategies. The importance of getting loan preapproval. Has a very cool loan payment calculator, too. Creating a Wish List and Finding the Right Property - Things to consider in choosing a home. This section will help you learn to recognize the right home when you see it. Tips include balancing the choices of picture perfect home vs fixer-upper. Making an Offer on Your Dream Home - Now that you've found your dream home, it's time to make an offer. What's in an offer? How is it presented to the seller? What responses can the seller make to your offer?

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After your offer is accepted by the seller, you are in escrow. What does this mean and what happens now? Click Here for Escrow Process Overview

Checklist of Buyer Responsibilities During Escrow: Buyer's Earnest Money Deposited Into Escrow Review Seller Disclosures Conduct Home Inspections and Investigations Decide on Means of Taking Title (Vesting) Review Preliminary Title Report Review Condo or Planned Development Documents Shop for Homeowners Insurance Lender Appraises Property Final Loan Approval Sign Final Loan Documents Submit Balance of Funds to Escrow Call Ahead to Change Utilities Walkthrough of Property Loan Funding Closing (Deed Recordation) Take Possession of Your New Home

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Paperwork?

Paperwork required in a Southern California real estate transaction can seem overwhelming. Here is an outline of some of the paperwork you'll encounter.

Agency Disclosure - The first disclosure is from broker to client. The agency disclosure explains the role of the seller's agent, the buyer's agent and what happens when there is dual agency. Most clients will see and sign this form at least twice in the course of a California real estate transaction. Exclusive Authorization to Acquire Real Property - Also known as the buyer broker agreement, this form is our authorization to represent you in the purchase of your property. It will show the general location and description of the property you would like to purchase, the price range, and the terms of the agreement. Most importantly, it officially recognizes you as our client, not just a customer. Buyer's Inspection Advisory - This form serves as a reminder that you, as the buyer, have a responsibility to check out all aspects of the property that may be important to you before you buy it. While the seller has a duty to disclose known defects, there often are details about a property that are important to the buyer that go beyond the seller's knowledge or duty to disclose. Disclosures Disclosure paperwork is designed primarily to protect the principals (seller and buyer) in the transaction. The majority of the disclosure paperwork serves to assist the seller in fulfilling mandatory disclosure requirements imposed by the Federal Government and by the State of California, and to provide the buyer with such disclosures in standard, easy-to-understand formats. It is customary for the seller's disclosures to be provided after your offer is accepted by the seller. With a few exceptions*, sellers are required to provide the following disclosures: Real Estate Transfer Disclosure Statement - Form prescribed by California Civil Code 1102.6 which must be supplied by the seller to the buyer of a property consisting one to four residential units (including a stock cooperative). It provides a checklist of items the property has, with space for the seller to indicate the condition of the items. It also contains questions regarding the seller's knowledge of specific conditions that could affect the property. The seller's agent and I will also visually inspect the property and indicate on the Transfer Diclosure Statement our observations. Smoke Detector Statement of Compliance - Required to be provided by seller to buyer as confirmation that the residential property being sold has operable smoke detectors installed in compliance with law and regulation. Water Heater Statement of Compliance - The seller's written confirmation that the water heater has been, or prior to close of escrow, will be properly secured to code to resist falling during an earthquake. Residential Earthquake Hazards Report - A list of questions which must be answered by the seller of a property built before 1960 regarding earthquake weaknesses of the property. Lead-Based Paint and Lead-Based Paint Hazards Disclosure - A Federally required disclosure form that must be provided by the seller of a property built before 1978. Homeowners Guide to Earthquake Safety and Environmental Hazards - Booklet which the seller is required to give to the buyer. Current editions of this booklet contain a chapter which fulfills the requirement that a buyer be given the Federal pamphlet "Protect Your Family from Lead." Natural Hazard Disclosures - Sellers normally provide these mandatory disclosures through a Natural Hazard Disclosure service since they are quite technical. These disclosures include the property's flood hazard area rating, dam inundation susceptibility, seismic hazard and earthquake fault zones, and geological hazard susceptibility, high fire severity zone rating, etc. Seller's Affidavit of Non-Foreign Status and/or California Residency - Seller statement of information in compliance with the Foreign Investment in Real Property Tax Act (FIRPTA) and California Non-Resident Withholding Law. Database Disclosure Regarding Registered Sex Offenders - A notice to buyers as to how they can obtain information on the presence of a registered sex offender in the neighborhood (this disclosure form is a result of "Megan's Law "). Most transactions no longer require this as a separate form since the language is now printed in the California Association of Realtors Purchase Agreement. Mello Roos Zone Disclosure - Required to be provided by the seller if the property is located in a Mello Roos Zone. Other Disclosures - Depending on the local jurisdiction and its related issues, additional disclosures may be required. * A few of the above disclosure documents may not be required in certain circumstances, such as when a property is being sold through probate or by a lender or trustee following foreclosure. Lender's Paperwork In the course of your real estate transaction, you'll also be receiving lots of paperwork from your lender. There is one lender form that creates a great deal of confusion: Truth in Lending Statement - This form gets the award for creating the most confusion in a real estate transaction. The reason is that the interest rate and loan amount shown on the form will not be the rate and loan amount the lender quoted you, and will not be the rate and loan amount that will appear on your Note and Deed of Trust. The Federal Government came up with the idea of a fictitious interest rate known as the APR (annual percentage rate) as a way of comparing costs of borrowing. Lenders must compute the APR by subtracting from the real loan amount certain costs of obtaining the loan. That's why the amount borrowed shown on the form differs from the true amount of your loan. Lenders then must divide the lower loan amount by the sum of the payments to come up with the inflated rate, known as the APR.

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Here are some handy links which you, as a home buyer, may like to click and visit.

Click and learn!

California Real Estate Inspectors Association - Link to the CREIA web site and Inspector Database. The search function by geographic area or community for an inspector is not very reliable. However, if you know an inspector's name, you can check to see if the inspector is an affiliate of the organization. CREIA Members have passed comprehensive technical and ethics exams, and are required to complete at least 30 hours of inspection continuing education per year. They are pledged to abide by the CREIA Code of Ethics and Standards of Practice. Tax Information for First-Time Homeowners - IRS Publication explaining deductions for home mortgage interest and real estate taxes. Also has handy tips on record-keeping. Tax Deduction for Points - IRS publication explaining deductibility of mortgage loan points. IRS Calculator to Estimate Your Withholding - Cool calculator. Plug in figures for your estimated mortgage interest, real estate tax and automobile personal property tax as Itemized Deductions to see how it might affect your tax withholding. LA County Real Estate Taxes - Explanation of how real estate taxes are computed. More links are being added daily. Check back often. © Copyright 1999-2002 - Linda Spell. All Rights Reserved.

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