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Buyer Information

Our agents at Golden Pacific Real Estate will gladly assist all buyers, including:

  • First-time homebuyers looking for that perfect starter home.
  • Move-up buyers for the expanding family.
  • Investment buyers from condos and homes to multiple-units and commercial.
  • “Empty nesters” looking to scale down into a smaller home or retirement area.

Buyers at any level always have many questions.
Here are some brief answers to frequently asked questions:

Q.   How much down payment do I need?
A.   For an FHA loan, the minimum down payment is 3.5% for loans under $417,000.
For a VA loan, a zero down payment is allowed for loans under $417,000. For
conventional loans, 20% down payment is ideal, to avoid mortgage insurance. For
investors 20% is the minimum, however, 25% will get you the best interest rates.

Q.   How much are closing costs?
A.   A good rule of thumb is to figure 2% of the purchase price, not including points
on the loan. This will include impounds for taxes and insurance and prorated
interest on your new loan. The actual figure may be lower, however, it is good
to budget on the high side.

Q.   What are points?
A.   A borrower pays points to lower the interest rate on their loan.
A point is equal to 1% of the loan amount. Points can range from .25 to 3
points on a loan. The most common amount for points paid on a loan is 1 point.
This would then need to be added to the closing costs mentioned above.

Q.   What is escrow?
A.   Escrow is the process that begins when your offer on a property
is accepted. It’s a process that allows all of the necessary documents, monies,
and signatures to be collected so change of ownership may take place. Escrow
closes when this process is complete. An escrow company is an independent
company who handles most of this process. They collect the money from the
buyer and the proceeds of the new loan then distributes the money and
paperwork at closing to the buyer and seller.

Q.   What do I need to get started?
A.   The following is a short list of items needed to qualify for a new loan:
Last two years W-2 forms for wage earners.
Last two pay stubs from all wage earners.
Last two months statements (all pages) for all asset accounts (checking/savings).
Last quarterly statement (all pages) from 401k, stock or IRA accounts.
For self-employed borrowers—last two years complete tax returns.
An accurate list of monthly payments (car, credit cards, student loans, etc.)

Q.   How long does it take to buy a home?
A.   First, you will be pre-approved for the loan. In most cases, this will
take only a few days. Once you find the perfect home to buy and get your
offer accepted by the seller, the escrow period will range from 30 to 45 days.
The more complete your up-front loan information, the quicker the process.

Golden Pacific Real Estate agents will make the process seamless from loan application through the close of escrow. Our goal is to make every transaction an enjoyable experience. Come see us, we are here to help you move in the right direction.