FAQ For Buyers
Q. Why should I consider buying property in
Humboldt County?
A. Humboldt County real
estate values have lagged behind the rest of California for years. Locally we refer to
“living behind the Redwood Curtain”. The curtain has parted in the past few
years. While investors and retirees have driven up prices dramatically, property is still
reasonably priced compared to the rest of the state. The rural quality of life in Humboldt
County is attracting people from throughout the USA.
Q.
What should I consider before purchasing?
A. Before you start looking
at homes, you need to find out what you can afford. In general you can afford to buy a
home equal to three times your gross annual income. Besides your income, other factors
that come into play include the amount of cash available for a down payment, outstanding
debts, credit history, current interest rates and the type of mortgage that you select.
Getting prequalified with a lender makes the process easier and the lender will provide
you with a “prequal letter” which will make your offer stronger.
Q.
What do I need to take with me when I apply for a loan?
A. You will save a good deal
of time if you take the following:
1.) Social security
numbers for everyone who will be on title.
2.) Copies of your
bank account statements for the last 6 months
3.) Evidence of other
assets like bonds or stocks
4.) A recent paycheck
stub detailing your earnings
5.) A list of all
credit card numbers and amounts owed. Bring the latest statement for each
6.) Balances due on
any other loans, such as car loans
7.) Copies of your
last 2 years income tax statements
8.) The name and
address of your employer
Q. How do I know what
to offer on a property?
A. First of all, your real
estate agent and you will look at a number of properties in your price range. Then your
real estate agent or broker should provide you with the market prices regarding all of the
other homes currently on the market as well as properties in escrow and recently sold
houses. Trust the knowledge of your real estate professional, this is what they do for a
living. If you don’t trust your agent, find one you do trust.
Other considerations to keep in
mind are 1.) the condition of the home. Will you have to make repairs? Inspections during
escrow will help you make that decision. 2.) How long has the home been on the market? If
it has sat for some time, the seller may be anxious and willing to negotiate on the price.
3.) How much do you want the home? The closer you are to the asking price, the more likely
the offer will be accepted.
Q. How much are closing costs?
A. There are loan fees that
will be a part of your loan package. Your lender will give you a “good faith
estimate” of how much cash you will need at the close of escrow. Don’t hesitate
to ask questions, this is a large amount of money you are committing to pay for many
years.
There are also costs associated
with the inspections that you are entitled to have performed. You are encouraged to make
any and all inspections that you deem necessary. The most common are the Pest Inspection,
Home Inspection and Roof Inspection. These usually cost vary from $100 to a couple of
hundred dollars. As a part of your purchase contract, there is a “Buyer’s
Inspection Advisory”. It will detail out all of the possible inspections to cover the
normal areas of concern.
