1350 Bayshore Highway
Burlingame, CA 94010
(650) 340-7800 x 269
If you have any question, please feel free to contact me!
This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. It is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.
The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.
A rate lock is a commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.
It is a list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.
It is a loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac. The loan limit is currently $424,100 for a condominium, townhouse, or single family residence.
It is a loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac. The loan limit depends on which county the property is located, but it is above $424,100 and below $636,150 for a condominium, townhouse, or single family residence.
A jumbo mortgage is any loan that is higher than or equal to $636,151.
It is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount. For example, "2 points" means a charge equal to 2% of the loan balance.
Escrow is an agreement between buyer and seller. It is a neutral party, usually an escrow or title company. It prepares and holds document and funds until the terms of purchase agreement have been fulfilled.
It is a response to an application for a policy of title insurance. The report contains ownership of the subject property: how the current owners hold title, matters of record that specifically affect the subject property or the owners of the property, a legal description of the property, and an informational plat map. It is important because its basic function is to minimize the risk or loss the buyer may suffer.
A title insurance policy is a contract to insure the buyer against loss or damage occasioned by defects in the title as insured under the policy. Unlike other types of insurance which insure against loss in the event of "future" happenings, title insurance protects the insured (buyer) against the possibility of loss resulting from a defect in the title that may have occurred in the "past."
It is written for a one-time premium; the protection continues until the interest of the insured is conveyed or is transferred. Even when an insured owner dies, his or her heirs remain protected under the terms of the title insurance policy.
Non-recurring costs are paid on a one-time only basis at closing. They include the followings:
Credit report fee - Fee charged for report on borrower's past ability to pay installment payments.
Appraisal fee - Lenders fee to appraiser for written report on the property value and comparables.
Underwriting fee - Fee charged by the lender to do the work to verify information necessary to make a decision as to whether or not to approve a loan.
Tax service fee - Fee paid to tax service company for semi-annual report to lender on tax payments.
Loan origination fee - One time fee charged by lender, also referred to as "points", does not apply to a "no point" loan.
Processing fee - Charged by lender for accepting a loan application and gathering the supporting paperwork.
Prepaid interest on new loan - Interest charged by lender from date of loan proceeds check to date of first payment (estimate 30-45 days).
Tax impound account - Prepaid monthly taxes held by lender in reserve for future payments of taxes due (3-6 months).
First year fire insurance premium - Prepaid annual fire insurance premium for one year commencing on the date of close of escrow.
Owners title insurance policy - Fee charged for extended coverage policy of title insurance.
Escrow fee - Fee charged by escrow agent to handle funds of buyer and documents of seller.
Recording fee - Fee paid to county recorder for each recorded document ($7.00 for the first page, $3.00 for each additional page).
Notary fee - State established fee of $10 per signature.
Drawing fee - Fee charged by title company to prepare documents (Notes and deed of trust).
Termite inspection fee - Fee charged by termite company for written report (Good for a year).
Property tax due - Next payable installment of property taxes due.
Home warranty contract - Warranty that pays for repair/replacement of home's major systems and appliances.
Property inspection fee - Fee paid for structural condition of property inspection.
Recurring closing costs are charges that you will pay over and over again. They include interest, homeowner's insurance, property taxes, and homeowner association (HOA) dues if applicable.
A Single Man/Woman A man or woman who is not legally married.
An Unmarried Man/Woman A man or woman, who having been married, is legally divorced.
A Married Man/Woman, as His/Her Sole and Separate Property When a married man or woman wishes to acquire title in his or her name alone, the spouse must consent, by quitclaim deed or otherwise, to transfer thereby relinquishing all right, title and interest in the property.
Community Property The California Civil Code defines community property as property acquired by husband and wife, or by either. Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Both spouses have the right to dispose of 1/2 of the community property.
Joint Tenancy A joint interest is one owned by 2 or more people in equal shares, by a title created by a single will or transfer, when expressly declared in the will or transfer to be a joint tenancy. A chief characteristic of joint tenancy property is the right of survivorship. When a joint tenant dies, title immediately vests in the surviving joint tenant(s). As a consequence, joint tenancy property is not subject to disposition by will.
Tenancy in Common The co-owners own undivided interests and these interests need not be equal in quantity or duration, and may arise at different times. There is no right of survivorship; each tenant owns an interest which, on his or her death, vests in his or her heirs or devissees.
Trust Title to real property in California may be held in a title holding trust. The trust holds legal and equitable title to the real estate. The trustee holds title for the trustor/beneficiary who retains all of the management rights and responsibilities.
Community Property with Right of Survivorship Community Property of a husband and wife, when expressly declared in transfer document to be community property with the right of survivorship, and which may be accepted in writing on the face of the document by a statement signed or initialed by the grantees, shall, upon the death of one of the spouses, pass to the survivor, without administration, subject to the same procedures as property held in joint tenancy.
A special power of attorney is an instrument authorizing one person (the agent) to do a specific act or acts on the behalf of another (the principle). A power of attorney may be appointed to act on your behalf in the event you became ill or disabled, or if you need to travel and matters need to be completed at home, in this case, to sign document related to your home purchase.
The special power of attorney is good for a limited amount of time and is revocable by the party signing the form.