All Posts tagged property in rancho mirage

The Basics of Escrow

By Kimberley Kelly 01 Aug, 2014 Rancho Mirage property in rancho mirage, Rancho Mirage real estate

If you’re a first-time buyer of real estate in Rancho Mirage, you may not fully understand the escrow process. Read on for some basic information about how escrow accounts work.

When you borrow money from a mortgage lender to buy a home, you will usually pay funds into an escrow account each month, in addition to your loan payments. When you have a mortgage, your home becomes collateral for the loan. Therefore, the lender will want to be certain that the property is properly insured in case damage or some type of accident occurs. In addition to the principal and interest your pay your lender each month, they may also collect property tax and homeowners insurance payments to ensure those bills are paid and to avoid a tax lien on your property should you neglect to pay your taxes. Many owners actually prefer to pay their lenders each month so that they are not hit with a large annual bill.

While escrow accounts are not always mandatory, if you have a loan guaranteed by the Federal Housing Administration (FHA), you must have an escrow account. Escrow accounts are also required on high-risk loans, such as those with a down payment of less than the typical amount, which is 20 percent. If yours is a conventional loan, the lender can decide whether or not to require an escrow account.

Since property taxes and insurance premiums change over time, the amount of your escrow payments may also change. Once your annual payments are made, if there is a shortage or overage in your account, you will get a refund or have to send an additional payment to make up the difference. As you can see, whether you’re buying real estate in Rancho Mirage or another part of California, escrow accounts can ensure that your investment in secure and be a convenient way to make sure all the bills associated with owning property are paid.

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What to Find Out Before Making an Offer

By Kimberley Kelly 20 May, 2014 Rancho Mirage property in rancho mirage

If you think you have found your dream property in Rancho Mirage or another part of the Palm Spring Valley, you may be close to making an offer. Narrowing down your choices to one is a very exciting prospect, but don’t jump the gun too early. Below are a few essential things to investigate before you actually make an offer—your realtor may be able to dispense much of the information needed and some of it you can research on your own.

Evaluate safety. One of the first things you should do when considering a neighborhood is to check the crime report. The local police station will post crime statistics on line and you can also check CrimeReports.com.
Check out the school system. If you have children, this is very important—even if you don’t, the school systems rankings can affect your home’s resale value.
Assess your commute. This is an important detail that many people forget about doing. Drive from your job, during rush hour, to your potential new property in Rancho Mirage. Since you probably viewed the home on a weekend, it’s not a good representation of what traffic will really be like during busier times.
Hire a home inspector. It’s essential to find out all the repairs that may be necessary before you make the offer so you can have an accurate picture of the kind of budget you will need to have in place. You can negotiate to include a home inspection in the offer, and then possibly require the seller to make some of the improvements.
Determine other costs. It’s important to understand that your monthly mortgage payment can be more than the principal and interest on the loan. Ask your realtor about taxes, homeowner association dues and utility bills. You should also get some quotes in advance for homeowners’ insurance.

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