ARE YOU READY?
IS AN INVESTMENT HOME RIGHT FOR ME?
When you are ready to explore the opportunities that real estate investment can offer, we can help you cut through the confusion in order to make the right decisions for your future. The competition for investment homes can be tough in many markets. You may need additional assets for repairs, or times when there are no renters in your property. Do the numbers work out in your favor?
WHAT TO CONSIDER BEFORE BUYING AN INVESTMENT HOME.
Investing in real estate is more than just purchasing a property. Rental properties can bring in monthly cash flow, but do you want to act as a landlord? Buying a property at a low price and “flipping” it, fixing it up and selling it for a higher purchase price, will require some home repair know-how, or investing more money for repairs. Both options have pros and cons to consider, but either way you are looking at a tangible asset that can possibly bring in positive cash flow and tax deductions.
We have seen every investment situation you can imagine, so go ahead and ask us; we want to help.
THE LOAN PROCESS
HERE IS AN OUTLINE OF THE TYPICAL HOME BUYING PROCESS WE WILL GUIDE YOU THROUGH:
Based on your income and credit information, we can give you a written statement stating our preliminary determination that you would qualify for a specified loan amount under our loan guidelines. A pre-approval letter is usually good for 60 to 90 days.
2. CHOOSE A REALTOR
A good realtor can help you find the home you are looking for, in the area you want, and can help you with offers, negotiations and contracts.
3. CONTINGENCY PERIOD
Once you have found your home and made an accepted offer, you will sign a contract, which is legally called a “contingent contract.” This means you are agreeing to purchase the property contingent upon certain conditions being met. The most usual contingency is that the home must be free of major defects, subject to inspection by a qualified home inspection. The contract has a contingency period that typically allows you 10-18 days to collect more information and decide whether you want to proceed or not, without forfeiting your deposit. During this time, you will work with
Your realtor to:
review and approve the Seller’s Real Estate Transfer Disclosure Statement
review and approve the Preliminary Title Report
arrange for inspections
approve inspection reports
Your loan originator (that’s us!) to:
satisfy any loan contingencies in the purchase contract
4. HOMEOWNER'S INSURANCE
You must have arranged for homeowners insurance before close of escrow. If your new home is in a flood zone, you will need flood insurance — we can help you with that determination and recommend appropriate insurance companies.
5. DOCUMENT SIGNING
We will prepare the necessary documents for your signature and will send them to the escrow company for signing. We will give you copies of all title and loan documents you sign.
6. DOWN PAYMENT & CLOSING COSTS
Several days before closing, you will be asked to go to the escrow company to sign documents and make a down payment (you need to bring a cashier’s check for this). The escrow officer will walk you through a Buyer’s Estimate Closing Statement, which will itemize your costs and credits associated with the purchase. Note that this is an estimate, but it will closely resemble your final amounts.
As your loan originators, we will receive your signed loan documents and any other loan condition documentation from the escrow company. When we have reviewed and approved the documentation, we will wire your loan funds to the escrow company.
8. CLOSE OF ESCROW
When the escrow company verifies the funds transfer, they arrange for the deed of title to be recorded in your at the office of the County Recorder.