This is a simple checklist of things that you should
be aware of when buying Real Estate in the Los Angeles
area:
1. Offers
| • |
Pre-Approval Letter from a lender – Most
sellers won’t consider an offer without one.
Don’t confuse this with a “pre-qualified” letter. |
| • |
Deposit = 3% (Customary in So. Cal.) – will
be deposited within 3 days after accepted offer.
This is STILL REQUIRED even with 100% financing.
You would be due some refund, if applicable, at close
of escrow. |
| • |
Be prepared to provide bank statements within 7
days of the accepted offer to prove you can provide
the remaining down payment and closing costs at Close
of Escrow (COE). |
|
2. During Escrow
| • |
Inspection – Buyer
responsible for payment COD
| - |
$175-$275 for condominiums |
| - |
SFR based on square footage $350-$500 or more. |
| - |
We have multiple inspectors you can choose from |
|
| • |
Appraisal – Buyer responsible
for payment; lender sometimes pays (~$400-$500) |
| • |
Credit report may be charged
by your lender - $50 |
| • |
It is the buyer’s responsibility
to secure hazard insurance (Earthquake insurance
is optional, but may be included in many Homeowner’s
Association
Dues) |
|
3. Closing Costs Approx 1.5% of purchase
price
| • |
Escrow fees ($1.95/$1000)
+ $200 |
| • |
Title Insurance- varies: $1572
for $500K property |
| • |
Origination, Points or Discount
Points from your lender (1-2% of purchase price,
if any) – Don’t forget to ask your lender
what will be on the buyer’s closing cost statement!
Get it in writing! |
| • |
Taxes and Insurance Impounds
| - |
Taxes are
billed at 1.2% for owner-occupied and 1.25%
for non-owner-occupied |
| - |
Some lenders require impounds
of up to 6 months in escrow of taxes and insurance |
|
| • |
Prorated Interest from the time
you sign loan documents until your first payment. |
| • |
Property Tax Pro-rations
| - |
Property Taxes
are billed in arrears by the County of Los
Angeles. |
| - |
November 1st for March
thru October; March 1st for November through
February |
| - |
(these are not 6 month
increments) |
| - |
You will be billed for
the pro-rated amount based on your property’s
transfer value. |
| - |
The seller will be credited
for their portion of paid property taxes through
the date of closing. |
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