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.

What does APR (annual percentage rate) mean?
Annual cost of the money you borrowed, including interest, loan fees and other costs.

What factors contribute to my FICO score?
Payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), types of credit (10%).

When my escrow closes, what must I keep of the volume of stuff in my file?
Insurance policies, any amendments, the deed, trust deed note, truth in lending statement and the HUD-1 statement.

What is the difference between "pre-qualified" and "pre-approved?"
Pre-qualified: purchase price determined by probable credit. Pre-approved: your credit, employment and funds have been approved by the lender.

What is the difference between 1) a home inspector and 2) an engineer?
1) examines components of a building through visual means and user controls without the use of mathematical sciences. 2) analysis/design work entailing not only math but physics, chemistry and other sciences.

What is a "gift deed?"
No material consideration is involved (only love and affection), i.e. transfer from relative to relative.

What's a grace period?
Additional time in which one is allowed to perform an act or make a payment before default occurs. Solve the problem before the grace period expires.

I am a housewife. My husband is buying a house for us. Should I sign a quitclaim to him to close escrow?
To finalize the purchase, I recommend seeking assistance (an attorney, paralegal, escrow officer) in preparing an additional deed adding your name as co-owner to be filed after COE.

When I pay off a mortgage loan, am I entitled to a refund on the origination fee?
No. It was paid directly to the lender as their legitimate fee for making the original loan.

As a landlord, can I cut off services (utilities, water, etc.) to a unit occupied by a nonpaying tenant?
Absolutely not. File eviction immediately.

Can I paint the house/apartment I am renting?
If your rental agreement states “no” alterations, that includes paint also. Get approval before proceeding.

I just received a 3-day Notice from the new owner of the foreclosed property. Is this legal?
Yes, I am led to believe it is. Doesn’t sound too friendly, does it?

What does C.L.U.E. (Comprehensive Loss Underwriting Exchange) mean?
Most insurance companies file paid/unpaid loss info into a central database. It is CA law that all inquiries be reported. Two or more losses can increase your and even future owners premiums considerably. Inquire as to what your prospective insurer’s practices include.

Can I deduct on my 1040 any association dues, insurance, appraisals, rent to occupy prior to COE, credit report, mello roos?
Sorry, no.
Well, then, what can I deduct?
Interest, late charges (oops, credit no-no), taxes.

I am in escrow for 2 weeks; the home needs many hidden repairs. Can I cancel?
Yes, and your deposit returned.

Can the new landlord/owner increase my deposit to two times the new rent?
Yes, if your not under rent control.

My tenants must move due to termite extermination. Must I pay them for the days of non- occupancy?
Simply deduct the 1/30th of the monthly rent for each day.

Can I appeal an adverse arbitration award if it is erroneous?
If there is no fraud or corruption by the arbitrator - NO.

What's a "pooch or dog park?"
A completely enclosed area where dog, supervised by their owners, are allowed to run free without being leashed.

Do I have to pay rent if I get a notice to move?
Of course.

How long is the usual probate?
Without a planned estate, perhaps 7-9 months and attorney's fees.

What is a non-conforming use property?
The use of a property that violates present zoning regulations but is allowed to continue because it began before the change in zoning.

What is an "instrument?"
Legal document created to effect the rights and liabilities of the parties to it, i.e. a deed, will or lease.

What are the prerequisites to qualify for a CalHFA home?
Go to my website. Click on CalHFA.

I keep hearing the words "boiler plate" in regard to stuff I have to sign. Explain.
Description of contracts that use standard, the same or similar terminology.

What factors contribute to my FICO score?
Payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), types of credit (10%).

When my escrow closes, what must I keep of the volume of stuff in my file?
Insurance policies, any amendments, the deed, trust deed note, truth in lending statement and the HUD-1 statement.

What is the difference between "pre-qualified" and "pre-approved?"
Pre-qualified: purchase price determined by probable credit. Pre-approved: your credit, employment and funds have been approved by the lender.

What is the difference between 1) a home inspector and 2) an engineer?
1) examines components of a building through visual means and user controls without the use of mathematical sciences. 2) analysis/design work entailing not only math but physics, chemistry and other sciences.

What is a "gift deed?"
No material consideration is involved (only love and affection), i.e. transfer from relative to relative.

What's a grace period?
Additional time in which one is allowed to perform an act or make a payment before default occurs. Solve the problem before the grace period expires.

We supplied a well-known on-line computerized lender with tons of personal information 2+ weeks ago. "It" now needs $300 to provide us with a prequalification letter. Is this the norm in the industry?
Not in my sphere of influence. Go shopping.

Is HUD planning an auction soon?
Yes. Contact me for-up-to-the-minute details.

Can filing a bankruptcy stop a tenant's eviction after receipt of a judgment?
No. The BK should be filed prior to issuance of the eviction judgment.

What is a Graduated Payment Mortgage and do you recommend them?
Any loan where the borrower pays a portion of the interest due each month during the first few years. The payment increases gradually during those years to the amount necessary to fully amortize the loan during its life. It depends upon how long you intend to keep the home and/or the loan.

As a homeowner, am I liable for injuries to those doing work on my home?
Yes. Verify that your "contractor" is licensed and insured. Your insurance may not cover such incidents.

How do I dispose of used paint and their cans?
Leave descriptive labels ON. Generally: Latex (water-based) - remove the lids, allow paint to dry and toss in the trash. Oil/alkyd - mix kitty litter or similar material with paint to absorb and dry out. Check with your city or trash company.

What is a "subordination clause?"
A stipulation or document permitting a mortgage recorded at a later date to take priority over an existing mortgage.