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Property Spotlight
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Pacific Beach
For Sale
$249,900
1 Beds / 1 Baths
| Unbelievable location only 3 blocks to the beach! This condo has everything you need with granite counter tops, travertine in the bathroom, maple flooring, and cherry cabinets... more >>
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San Diego
For Sale
$1,695,000
3 Beds / 3 Baths
| If you appreciate volume, design and architectural beauty, this home is for you!.. more >>
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Escondido
For Sale
$1,150,000
4 Beds / 6 Baths
| Luxury Defined-elevated and Private Architectural Gem with dark bottom pool with waterfall, swim ledges and separate spa with waterfall and views to Catalina Island, when clear... more >>
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San Diego
For Sale
$499,000
4 Beds / 3 Baths
| This 4br\/3ba is located on a cul-de-sac in the great family community of Mesa Summit.With over 2200 square feet of living space and breathtaking canyon views on a larger lot... more >>
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A neutral third party holds documents and money for a local San Diego real estate transaction and ensures
that all conditions of a sale are met. That in a nutshell is the definition of Escrow.
A special account that a lender uses to hold a borrower's monthly payments on San Diego home taxes and insurance also refers to an escrow.
The amount of money that you will be required to come up with at escrow depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the San Diego home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the San Diego home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your local San Diego real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans
require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans
require only 3% down - and sometimes less.
Some San Diego real estate buyers hold monies in escrow because it helps ease closing costs.
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various
fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.
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