First-Time Buyers

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This is the first question to ask your self when purchasing a home. Be honest with yourself. Make sure the mortgage for your new home fits into your budget. Know what you are willing and/or able to spend for a monthly mortgage then give that number to a lender to run the numbers and they can let you know what price of home you can afford. Starting the process this way instead of having a lender tell you what you can qualify for will save you from over spending your monthly budget. Check out my partner list for great lenders that can help you out.

The amount needed for your down payment when purchasing a home varies with the loan program you qualify for and/or choose. It could be as low as 3% for an FHA or VA loan or 20% of the purchase price for a conventional loan. Keep in mind the more you put down the less your monthly mortgage payment and if you put 20% down or more there is no mortgage insurance added to your monthly payment.

Whether buying or selling a home you will pay some closing costs. These fees are in addition to your down payment if you are buying. A good estimated rule of thumb is 2.5% of the purchase price if you are buying and 1.5% of sales price if you are selling. Closing costs consist of items such as title fees, title insurance, HOA prepaids, taxes (prorated), and lending fees. All of these costs will be disclosed to you prior to closing and are paid at close of escrow through the agreed upon title company. See my partner list for a wonderful title company and give them a call if you have additional questions regarding these fees.

Yes. Besides the down payment and closing costs buyers will pay upfront for a home inspection, termite inspection and appraisal.

The selling process can have variations for each client, however these are the general steps that most sellers follow: 

1. Contact your Real Estate Agent

2. You and your Real Estate Agent will handle marketing your home to buyers.

3. Review and negotiate offers from potential buyers with your agent.

4. Accommodate for inspections, disclosures, and negotiate any repairs as permitted by contract.

5. Sign Escrow documents

6. Record/transfer Title 

7. Close on the sale of your home!

Below are some of the most common costs sellers can account for:

1. Property repairs
2. Existing Loan payoff
3. Existing Loan pre-payment penalty (if any)
4. Tax service contract
5. HOA Transfer Fee (this could be paid by the seller or the buyer)
6. Home Warranty Premium (this could be paid by the seller or the buyer)
7. Realtors' Commissions
8. Homeowners Title Policy
9. Escrow Fee (split by both parties)
10. Recording Fees (split by both parties)
11. Reconveyance/Satisfaction Fee
12. Courier/Express Mail Fees (split by both parties)

There are many situations or title issues that can arise during the escrow process that may cause

your transaction to be delayed or have unexpected costs. Below is a list of the most common

situations that cause problems originating from the seller. I will be here to walk you through every step of the process!

• Sellers leaving town without establishing a power of attorney, reviewed and approved by the

title insurer.

• Failure to submit lien holder information on existing loans to escrow.

• Homeowner Association information and fees not provided to the Escrow Officer upfront.

• Homeowner Association pre-paid doc fee not paid in a timely manner.

• Escrow Officer not made aware of recent construction on the property.

• Escrow Officer not made aware of various statuses (e.g., marriage, registered domestic

partnership, separation, sole and separate property, death of joint tenant, properties held

in a trust, bankruptcy, out-of-state or out-of country seller, 1031 exchange, easements, etc.).

• Seller is incapacitated.

• Deceased seller without a Tax ID number.

• Foreign seller without a Tax ID number.

• Seller chooses to pay reduced withholding tax to State of Arizona.

• Escrow Officer not notified when judgments arise during escrow period.

• Escrow not notified that the sale of the property includes a mobile home that will need to be

transferred.

• All liens on the Title Commitment have not been paid off or pay-off information not provided

to Escrow Officer.

• Acceptable forms of identification, including current Driver’s License, passport, or Arizona

DMV Identification Card, not provided at signing.

• Name on identification different from name in which title is held.

• Arrangements to transfer or wire funds to another escrow, bank or investment account, not

made in advance with Escrow Officer.

As with any process in buying or selling a home, there can be variations for every client. However, this is the general outline of the loan process for buyers:

1. Pre-Qualification/Interview

• Application interview

• Lender obtains all pertinent documents to avoid delays

2. Loan Process Period

During the loan process, the lender will request:

• Credit report, appraisal of property, verification of employment, mortgage or landlord ratings,

verification of funds to close

• Title Commitment from Premier Title Agency

• Picture ID, W2s (2 years), a Certificate of Eligibility, DD214 (VA only), and any other necessary

supporting documentation

• Loan Estimate (includes estimate of costs)

3. Loan Submission

• Loan package is assembled by the Loan Officer or Processor and submitted to the underwriter

for approval

4. Loan Approval

• Generally takes 24-72 hours

• Parties are notified of approval and conditions to the loan

5. Documents Prepare by the Lender

Upon loan approval:

• Closing Disclosure is issued to Borrower and delivery and reviewing period begins

• Loan documents are prepared and sent to Premier Title Agency

• Borrower is notified of how much money is necessary to close the loan

• Borrower will come to Premier Title Agency to sign all final documents

6. Funding

• Lender reviews the signed loan package

• Funds are wired to Premier Title Agency

7. Recording Documents

• Premier Title Agency records the Deed of Trust electronically with the County Recorder’s Office,

securing the lien against the property

• Funds are disbursed to the appropriate parties

• Escrow is officially closed

Below are some of the most common costs buyers can account for:

1. Down Payment
2. Property Inspection
3. New Loan Origination Fee
4. Credit Report
5. Appraisal or Extension Fee
6. Next Month's PITI Payment
7. Prepaid interest
8. FHA MIP, VA Funding Fee, PMI Premium
9. Tax Impounds
10. Fire/Hazard Insurance
11. Flood Insurance
12. HOA Transfer Fee (this could be paid by the buyer or seller)
13. Next month's HOA Payment
14. Home Warranty Premium (this could be paid by the buyer or seller)
15. Lenders Title Policy and Endorsements
16. Escrow Fee (split by both parties)
17. Recording Fees (split by both parties)
18. Courier/Express Mail Fees (split by both parties)