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10 Torrance Home Buyer Tips and Helpful Information

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Assistance for First Time Home Buyers in Torrance CA – 10 Home Buying Tips

  1. Find a real estate professional who is the right fit for you.   Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the Realtor®  you choose is both skilled and a good fit with your personality.
  2. Timing the market.   There is no “right” time to buy anymore than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price and a good home won’t stay on the market long. See article on trying to time the real estate market.
  3. The most important opinion is your own.  It’s natural to want reassurance for such a big decision, but too many  ideas will make it much harder to make a decision. Don’t ask for too many opinions and trust your own instincts.
  4. The Big Picture. Accept that no house is ever going to be perfect. Pay attention to the things that are most important to you and let the minor things go. Make the decision based on whether you would be happy in the home.
  5. Keep negotiations realistic.  Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love and although the difference may sound like a lot, it may be an insignificant difference over the life of a 30 year mortgage.
  6. Remember your home doesn’t exist in a vacuum.   Don’t get so caught up in the physical aspects of the house: room size, kitchen, floors, etc. that you forget such issues as amenities, noise level, neighborhood, etc. that have a big impact on what it’s like to live in your new home.
  7. Get pre-qualified or pre-approved.  Don’t wait until you’ve found a home and made an offer to get approved for a mortgage. Not only is getting pre-qualified quick and easy, but there is no obligation. Finding out how much you can afford, whether your credit could use some repairing, and what your monthly payments might be, is a significant step toward buying a house and making the process less stressful.
  8. Factor in maintenance and repair costs in your post home-buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.
  9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits. It is common to question your decision but in the long run, home ownership is usually a fantastic opportunity.
  10. Choose a home first because you love it; then think about appreciation. A home’s most important role is as a comfortable, safe place to live. With the increases in value in the early 2000’s, people have begun to think of their home strictly as a way to make money. Make sure your home is something that you’ll enjoy living in for a long time.

See our other articles for first time homebuyers:

Will Overpricing Help Slow the Market Down?

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By Keith KyleTorrance Homes

I’ve noticed an early January trend in some of the local markets as many homes now seem to be listed at prices that recent sales just don’t seem to justify. Will this overpricing help slow the market down a little as we’re starting to see some homes sit on the market and even eventual price reductions.

We’ve seen the market increase in value dramatically in the past 12 months with values generally rising each month but since late November we seem to be seeing more homes priced well above the current market and well above the pricing trend. Only time will tell what 2014 has in store in the Beach Cities real estate market but as perception is such a real part of real estate, buyers now seeing homes sit on the market without selling may mark the beginning of a slow down.

Who Pays for What in Escrow

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Closing Costs – Who Generally Pays What In a Torrance CA Escrow

Title Fees

Cost
Customarily
Charged By/To:
Description

Owners
Title Policy

 Title:
To Seller		 Fee for the title policy. Calculated using the sales price.
May be reduced if home was purchased or refinanced in
the last 5 years. Insures that the title is as agreed
to at closing

Lenders
Title Policy

 Title:
To Buyer		 Title  policy issued to lender to cover the amount of the loan. Based on the loan amount unless it is a negative amortization loan.

Sub
Escrow Fee

 Title:
to Buyer & Seller		 Fee  to administer the payoff of loans or property taxes
of the seller and collection of funds from the new lender

Document
Transfer Tax

 County,
City: to Seller		 Fee  charged on all properties that transfer title – based
on sales price.

Record
Release/Reconveyance

 County:
To Seller		 Charge  to record the release/reconveyance

Federal
Express

 Federal
Express: to Buyer & Seller		 Charge  to deliver all time sensitive documents and monies

Title/Wire
Fee

 Banking
Instituion: to Seller		 Charge  to wire funds to escrow, seller, lenders, etc

Electronic
Recording

 County:
to Buyer		 Charge  to electronically record the document

Record
Grant Deed

 County:
To Buyer		 Charge to record the grant deed

Record
Trust Deed

 County:
To Buyer		 Charge
to record the trust deed.

Messenger

 Messenger
Service: To Buyer and Seller		 Charge to special messenger documents during the escrow: Fee  varies with distance

Lender’s
Endorsement

 Title:
to Buyer		 Charge  for endorsements required by lender to cover “outside the normal” risk circumstances

Escrow Fees

Cost
Customarily
Charged By/To:
Description

Escrow
Fee

Escrow:
to Buyer & Seller		 Covers  liability assumed as well as standard processing costs.

Damand
Fee

Escrow:
to Seller		 Charge  to request a statement & process involved in getting
a payoff figure to escrow on the outstanding amount of the current loan.  One demand fee per loan.

Process
HOA Docs & Transfer Fee

 Escrow:
to Buyer & Seller		 Fee  for processing required to assign membership for HOA
a& copying all governing documents

Document
Fee

Escrow:
to Buyer		 Covers  the cost of all processing required to meet new lender
requireents

Loan
Tie-In Fee

 Escrow:
to Buyer		 Covers  the cost of all processing required to meet new lender
requirements

Federal
Express

Federal
Express: to Buyer		 For  document packages to out of County Lenders.

Lender Fees

Cost
Customarily
Charged By/ To
Description

Origination
Fee

Lender:
to Buyer		 Charge  for lending money at 1% of the loan amount

Documentation
Preparation

 Lender:
to Buyer		 Paid  to lender for preparation of final loan documents

Tax
service

Tax
Service: to Buyer		 Fee  charged to buyer to set up property taxes with the state

Wire

 Banking
institution 		Charge  for the wiring of funds to title for closing

Underwriting

 Lender:
to Buyer		 Fee  to direct lender for the process of approving

Tax
impounds

Lender:
to Buyer		 Collected  to create an impound reserved account for the lender to pay property taxes twice a year

Insurance
impounds

Lender:
to Buyer		 1yr  + 2 months hazard insurance collected for impound reserve  account

Appraisal

 Appraiser:
to Buyer		 Paid  directly to appraiser for appraisal of property

Credit
Report

Lender:
to Buyer		 Paid  to credit bureau for report containing 3 credit scores

Processing

 Lender:
to Buyer		 Paid  to mortgage broker for processing loan package from
application to closing

Disbursements

Cost
Customarily
Charged By/ To
Description

HOA  Transfer Fee

 HOA Management: to Seller To  transfer ownership and handle new accounting set up

HOA  Dues

HOA Management: to Seller Paid  through month o closing

Fire  Insurance

Insurance Agency: to Buyer 1  year prepaid premium for Homeowners insurance

Notary

 Notary:  to Buyer Charge  to seller for signing of grant deed or certificatin

Payoffs

Cost
Customarily
Charged By/ To
Description

Recording  Fee

Existing  Lender: to Borrower Charge  for having reconveyance recorded.

Statement forwarding fee

 Existing  Lender: to Borrower Charge  for issuing a payoff statement

Credits
and Prorations

Cost
Customarily
Charged By/ To
Description

HOA  Dues

 Seller: to Buyer Calculated  from date of COA through month-end

County  Property Taxes

 Seller:  to Buyer Calculated  from the date of payoff through end of period paid for.

Common Ways of Holding Title To Property in Torrance

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Common Ways of Taking and Holding Title in Torrance Real Estate

back to home buyer and seller tips

There are many ways to take title on property in California. While you should  consult with an attorney, our helpful chart gives some of the  similarities and differences of the various ways of holding title  including, tenancy in common, joint tenancy, community property,  and community property with right of survivorship. There are other ways of holding title as well, but our chart should help explain  the basics. If you are considering buying real estate or a home in Southern California’s South Bay, we can help. Contact us today

Tenancy in Common Joint Tenancy Community Property Community Property with Right of Survivorship
WHO? Anynumber of persons (can be husband and wife). Any number of persons (can be husband and wife). Only husband and wife. Only husband and wife.
DIVISION Ownership can be divided into any number of interests, equal or unequal. Owner interests must be equal. Ownership and managerial interests are equal. Ownership and managerial interests are equal.
TITLE Each co-owner has a separate legal title to his or her undividedinterest. There must be unity of title and time. (created in one document) Title is in the “community.” Each interest is separatebut management is unified. Title is in the “community.” Each interest is separatebut management is unified. Title must expressly statecommunity property with right to survivorship.
POSSESSION Equal rights of possession. Equal rights of possession. Bothco-owners have equal management and control. Both co-owners have equal management and control.
CONVEYANCE Each co-owner’s interest may be conveyed separately by its individual owner. Conveyance by one co-owner without the others will terminate that individual’sjoint tenancy. Real property requires written consent of other spouse, and separateinterest cannot be conveyed except upon death. Real property requires written consent of other spouse, and separateinterest cannot be conveyed except upon death.
PURCHASER’S STATUS Purchaser will become a tenant in common with the other property co-owners. Purchase will become a tenant in common with the other co-owners. Purchaser can acquire title from the community with written consentor joinder of both spouses. Purchaser can acquire title from the community with written consentor joinder of both spouses.
DEATH Onc o-owner’s death, his or her interest passes by will to thatperson’s devisees or heirs. No survivorship right. Onco-owner’s death, his or her interest ends and cannot be disposedof by will. Survivor(s) own(s) the property. Anaffidavit of death of joint tenant establishes death. Upon death of one spouse, 50% belongs to surviving spouse, 50%goes by will to descendant’s devisees or by succession tosurviving spouse. Upon death of one spouse, his or her interest ends and cannot bedisposed by will. Survivor owns the property 100%.An affidavit of death (community property with right of survivorship)establishes death of a spouse.
SUCCESSOR’S STATUS Devisees or heirs become tenants in common. Last survivor owns property 100% If passing by will, tenancy in common between devisees and survivorresults. Purchaser can only acquire whole title of community; cannot acquirea part of it.
CREDITOR’S RIGHTS Co-owner’s interest may be sold on execution sale to satisfy his or hercreditor. The creditor becomes a tenant in common. Co-owner’s interest may be sold on execution sale to satisfy creditor.Joint tenancy is broken; creditor becomes tenant in common Property of community is liable for contracts of either spouse whichwere made after marriage and prior to or after January 1,1975. Co-owner’s interest cannot be sold separately;whole property may be sold on execution to satisfy creditor. Property of community is liable for contracts of either spouse whichwere made after marriage and prior to or after January 1,1975. Co-owner’s interest cannot be sold separately;whole property may be sold on execution to satisfy creditor.
PRESUMPTION Favored in doubtful cases except husband and wife case. Must be expressly stated. Not favored. The legal presumption is that property which has been acquiredduring the course of the marriage is community property. The code reads that deeds must state “community propertywith the right of survivorship.”