Can I help my adult son buy a house?
Yes. There are a few restrictions. I suggest you talk to your lender, who will tell you just what is required. It is a requirement for any purchase.

What is a title report?
A complete history of all recorded ownerships of property.
What is title insurance?
It is a requirement by all lenders and should be purchased even when paying cash for a home. It protects lenders and homeowners against loss of their interest in property due to legal defects in the title. DO NOT BUY A HOUSE WITHOUT IT.

What is the 1% loan origination fee?
A charge by the lender for making a loan. It is included in the closing costs.

If I make an offer on a property and it is not accepted, I lose the deposit. Right?
NO!

What is a PUD (generally detached single family residences)?
A Planned Unit Development. The swimming pool, tennis courts, parks, etc. are collectively owned and maintained by the owners; hence, a monthly assessment fee is necessary.

What are closing costs?
They are the seller's and buyer's fees and prorations necessary to be paid in order to record the deed in the buyer's name.

I have to be pre-approved; can you help me with this process?
You betcha?

What is Community Property?
Property acquired by a husband and wife, or both, using commingled funds.

What is a Notary Public?
A person designated by the State to witness signatures and to take affidavits and acknowledgements. All documents recorded with the County have to be notarized, i.e. real estate grant deeds.

My parents are willing to give me a gift of money to buy. Is this legal?
Lenders love to see moms and dads come through with cash which they have on deposit.
Is it a tax advantage for parents to do to this?
It certainly can be. See your taxman.

A car dealer told me I have bad credit. Can I buy a house even if I he told me that?
Could be. The question is, Why is the car dealer not bending over backwards to make a sale? Let's take a look at your credit report.

Date of closing, COE, recording date, huh?
They all mean the same - the date escrow has all the necessary documents to transfer title from seller to buyer. At this time, all liens are prior liens are paid off and prorations figured. Only then can title to the property be transferred from the happy seller to the anxious buyer.

Proration, prorate, pro-rata. What do these mean?
Buyers and sellers pay their proportionate obligated share in real estate taxes, insurance, dues, etc. It is normally the date of closing.
Can you gain entry into any house listed for sale in So. CA.?
Ninety-nine percent of them.

Is this a good time to buy?
This is Buyer's Market. Make an offer while the interest rates are low.

What is a specific Power of Attorney?
A legal document authorizing another to perform a specific act on your behalf as your agent or attorney.

What's an encumbrance?
A lien, liability or charge upon real estate.

What's an easement?
An interest in land owned by another. It entitles the holder to a specific limited use, such as laying a sewer or putting up electric power lines.

My sister owns a property with me as joint tenants, but only I live in it. Is this legal?
You own it jointly no matter who lives in it. It is implied that you will own it totally upon her death. This can be most advantageous for the the co-owner.

I used my VA eligibility years ago. Can I use it again?
If the loan in your name was paid OFF, absolutely.

What's an investor anyway? Can I become one?
Someone who already has a house and wants to buy another. Sure.

What is earnest money?
Another name for the deposit submitted with an offer to show "good faith" to follow through with the purchase.
What does owner-occupied mean?
A residence primarily used by buyer.

What is Mortgage Insurance Premium (MIP)?
A charge paid by the borrower obtaining financing with less than 20% down, usually added to the loan amount and paid in the monthly paymnet, i.e. PITI+MIP (principal, interest, taxes, insurance, mortgage insurance.

What's a contingency?
A condition - i.e. in real estate: your offer is accepted, but the sale depends on you selling your present house. The seller agrees to postpone closing until your sale closes.

I'm confused. What's a conventional loan?
Any loan other than that which is insured by FHA or VA.

My friend says I can make out taxwise if I own a house. How?
File an IRS 1040 Long Form and include all your interest and taxes as deductions; a larger refund than you got last year.

What's a HUD Repair Escrow (203K)?
Some improvements (over $5K, but less than $35K) are necessary to obtain an FHA loan. This can include health and safety issues, a stove, new paint, new carpet, new toilets, etc. - the cost of which is added to the loan.
Is a repair loan available to investors also?
No, not at this time.
What's a buyer's agent?
A real estate professional who represents you, the buyer, exclusively.
Are you a buyer's agent?
Precisely, yes.

Do I have to come up with the full down payment before I make an offer on a house?
In today's market, lender/owners, REOs desire proof buyer is capable of closing an escrow.

What is a co-borrower/co-signor?
A person or persons who help you qualify to purchase a home.
What best describes a co-borrower?
Owns his own home. Has a stable job. Has good credit. Generally, today, it is desirable that the co-borrower be related to the buyers.


Where do all these Questions and Answers (QandAs) come from?
Over the years I have chronicled many Frequently Asked Questions (FAQs) put to me relative to residential real estate buying and selling in California's San Bernardino and Riverside Counties.

My father has bad credit and I'm a Jr. Can I easily eliminate the duplication of his bad credit on my credit report?
Yes, of course, BUT a little work is necessary on your part.

I want to buy a home in six months. Should I inquire about any conflict sooner?
It certainly is recommended to assure your credit score is as good as possible. Thus, you will receive the best loan possible.
What's better - more down payment or great credit?
"Show me the Money," can be the rule, but flawless credit works wonders.

Many REO homes have holes in the walls. It'll be expensive to replace the entire wall, right?
No. You can simply go to your local Home Depot for easy, complete instructions to easily repair only the holes so they are invisible.

I want to live in a rural area, but I'm afraid of septic tanks. Should I?
About 25 million U.S. homeowners favorably rely on these simple, yet highly efficient systems.

What's an acceleration or alienation clause?
A condition in a note which declares it due immediately when the condition in the clause occurs.

Amortization. What's that?
The payment of a loan, as to both principal and interest in equal installments over a specified period of time.

What does earnest money mean?
A deposit of money paid as part of the purchase price to bind the agreement between a buyer and seller.

What's an assessment?
A cost local entities can charge/levy against real property in the area for an improvement, i.e. streets, sewers. A tax - by another name.

Eminent domain. What is it?
When a government acquires for payment real property for public use or as interpreted in some locales "for the betterment of the community."

There's a lis pendens on a property and I can't buy it now. Why?
A lawsuit is pending (not solved) against the real estate. It must be satisfied before ownership can change.

What is a "Short Sale?"
A lender agrees to reduce the payoff of a loan to accomplish a sale.
Too good to be true for the seller, huh?
It depends how you look at it. The seller will have bad credit and a potential tax bill from the IRS. Caution: If you used your VA, you will also lose your benefits until your debt is paid.

What is a Straight/Note Loan?
One with periodic payments of interest only. The principal is all due and payable at the end of the time specified.

What does Fannie Mae (FNMA) mean?
A Congress created corporation - Federal National Mortgage Association - it encourages lenders to make low down payment loans.
What does Freddie Mac (FHLMC) mean?
A publicly owned agency - Federal Home Loan Mortgage Corporation (also known as Homesteps) which provides a secondary mortgage market for conventional mortgages.
Do these two agencies sell their repossessed homes?
Yes. They are included in the MLS along with the many of their REOs.

What does it take to merit the title of "First-time Buyer?"
Simply, one who has not owned a home within the last three years.