please respond to tanya with 150 words
Course: BRE 100, Real Estate Principles
Student Name: Tanya
Today’s Date: 11/23/2022
Textbook Author: Perez, J.
Chapters # 9-10
Overview
Chapter 9 discusses understanding the finance process. Financing is a significant part of home buying, and chapter 9 discusses the different aspects of financing. Finally, chapter 10 discusses Escrow, transaction coordinators, and title insurance. Completing an escrow involves full setup instructions.
Key Concept from Chapter 9
Those who buy real estate pay with cash sparingly. Instead, they use the property as leverage and borrow the funds to buy it. With borrowing money, comes interest fees. Interest fees in real estate is a simple interest charges for borrowing money. Another type of mortgage is fixed-rate because it is a duplicate monthly payment each month and includes the principal and the interest.
Key Concept from Chapter 10
According to Huber, “A transaction coordinator is a real estate professional who assists agents and brokers in the processing of a real estate transaction through escrow.” One can pay a transaction coordinator a specific listing fee to review the listing, order and review certain documents, prepare the packet of seller-signed disclosures, advisories, and reports, and enter the listing into the e-file system. Being in Escrow is a requirement in California because a third party has to hold funds until all agreements are met. The Financial Code has the Escrow listed in it. The Escrow is usually a written contract.
Key Concept
Purchaser Requirements (306)
According to Huber, “the FHA requires the purchaser to have some financial interest in the property on which a loan is to be insured.”Some FHA programs require down payments, while others allow an impound to be paid in cash. In addition, the borrower must meet FHA credit qualifications and have Mortgage Insurance.
Chapter 10 Key Concept: How escrows work (pg. 345)
Instructions for Escrow are on the CAR and Joint Escrow page. The terms can be modified by mutual agreement. Escrows usually have a checklist that needs to be followed, and once completed, the agent needs to take the receipt of acknowledgment. Once the escrow rules are set, they can only be changed if both parties agree.
Summary
Chapters 9 and 10 discuss important information from finances to escrows. Escrows are one of the essential parts of buying a home and, in California, are a must.
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