Mortgages Made Simple with Rick Gundzik

Sunday, July 24, 2005
I'm in Escrow! Part 2
You've found your dream home, your offer was accepted and your real estate agent says, 'Congratulations, you're in escrow.' Now what?

As a homebuyer it is pretty straight forward. Here is what to expect.

Many agents include an appraisal contingency which means you'll be paying for an appraisal pretty quickly. The contingency is to make sure you're not paying for more than the home is worth.

Home inspection
A home inspector will come out and rip apart your dream home. Just kidding!! They're actually very good and can give you a good idea on the condition of your home. They'll check water pressure, electricity, look for obvious water leaks, check the functioning of appliances, etc. They'll give you a nice report of your new home.

Pest inspection
Depending on your state a pest control company will come out and inspect your new home for the existence of/or damage from pests. In California its termites.

In our opinion this is the most important part. Hopefully you took our advice and had your loan pre-approved. This is a detailed process which we will cover in our next blog entry.

Paperwork from closing agent
You will receive various items from the closing agent. Typically this will include requests for information about your mortgage company, your insurance agent and a little history on you. Simply fill out the forms and return them promptly. If you have any questions, give them a call.

Buying a home doesn't have to be a nightmare. Just be sure you understand your offer, have secured a good loan with payments you can afford and if you're ever unsure of anything, call your real estate agent.

Questions??? email us at
posted by Pac Res @ 4:39 PM   0 comments
Monday, July 18, 2005
I'm in Escrow! What are they talking about?
'I'm in Escrow!' Sometimes you hear this phrase at a cocktail party (Ok, those went away in the 60's, but it sounds trendy) and wonder, 'Hmmm, They're in escrow, I hope it doesn't hurt, can they get out of escrow?, if so when can they get out?'

Well, sometimes escrow is painful and if you're a seller you can't get out. Let's look at escrow from the viewpont of a seller, next time we'll take the buyer's viewpont.

As a seller, you've decided to sell your home. You call your aunt who has friend whose grandmother's cousin has a niece that sells real estate. So you list your home with her. If she is the average real estate agent, she may sell as many as 8 homes per year. Wow!! Genuflect in her direction. The reality is she probably sells less. Therefore, she has NO experience.

RULE #1 Work with an experienced agent or one that has a fantastic staff behind them. Everybody has to start somewhere, but if they're low on experience ask them what kind of experience their staff has.

Ok, assuming everything goes well and you accept an offer for your house, the transaction is now in escrow. The purchase contract is given to an escrow company or Attorney, depending on the state you are in, and they open escrow.

Escrow is nothing more than an independent 3rd party who makes sure your money goes to the right place. They make sure your mortgage is paid off, the title to the property is transferred to the buyer's properly and ensure you receive your money. As mentioned before, depending on your state either an escrow company, title company or attorney handles these functions.

Do not be afraid to call the Escrow officer, title officer or attrorney's office, they are working for you. Also, due to the sheer volume of transactions they perform they have a great deal of experience. Keep in mind they can't give you legal advice, but they can generally help you out.

RULE #2 Understand the offer. As a seller you can not back out of the deal, so be sure you are satisfied with the offer. If you are unsure of anything ask your real estate agent. Also, be sure the place you are moving to will be ready and you are approved for your new mortgage. We've rescued more than a few sellers who couldn't get their loan approved at the last minute. Which brings us to the next rule.

RULE #3 Get your loan approved in advance. It is very important to know if you'll qualify for the new home you're buying. Just because you sold your home for more than you ever thought possible doesn't mean everything will be fine.

If you need help or have any questions, email us at
posted by Pac Res @ 3:45 PM   0 comments

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