CBCR HOME BUYER GUIDE

CAMPBELL REALTORS

YOUR EXCITING HOME FINDING ADVENTURE BEGINS

Buying a home is one of life’s biggest investments and most exciting adventures. This Home Buyer Guide includes helpful information to get you started:

• Your role & obligations in the home buying process

• What to know about Commissions & Agency

• My role as your partner in this exciting journey

• Step by Step – The Home Purchase Process

• Writing Offer, Opening Escrow, & Inspections

• Coaching you to success all the way to the Closing & Possession

I would like to be your partner in the process, guiding you along the way to make your experience smooth and successful.

YOUR ROLE & OBLIGATIONS

Buying real property is a detailed process, and your satisfaction with your purchase will depend, in part, on how effectively you participate in your role & obligations as the Buyer.

USE REASONABLE CARE: Home Buyers are obligated to read all documents provided to them. Buyers also have an affirmative duty to take steps to protect themselves, including discovery of the legal, practical, and technical implications of facts which may affect the desired use of the property.

HIRE PROFESSIONAL ASSISTANCE: Buyers should seek assistance from professionals for mortgage services, the investigation of property condition, disclosures & reports.

COMMUNICATE TIMELY: Buyers should notify their Agent of any issue which may affect their ability to execute documents, attend important meetings, or complete the transaction Scheduled. Timely notification will aid your agent’s efforts in obtaining a satisfactory resolution.

We do not expect you to purchase unless you find a home you like… but if you do, I will be there to help. By working together and using a combination of reasonable care, professional assistance, and excellent communication, your home buying experience will be very positive.

WHAT YOU SHOULD KNOW ABOUT COMMISSIONS & AGENCY

COMMISSIONS: With the advent of Veterans Administration (VA) financing after World War II, it became standard practice for the entire single family residential real estate industry in the United States and California for the seller to pay the real estate commissions for both the agent representing the buyer and the seller.

On March 15, 2024 the National Association of Realtors announced changes to the Multiple Listing System rules which became effective August 13 2024:

1) Agents are required to sign a written Buyer Representation Agreement with their Buyer Clients. There is a $2500 MLS fine if a Buyer Agent shows a home without a signed Buyer Representation Agreement.

2) Seller paid buyer commissions will no longer be published in the Realtor MLS.

You and I will agree on the amount of the Buyer Agent Compensation in the Buyer Representation Agreement. When we submit offers for you, the “Seller’s Payment to Buyer’s Broker” form is included in the offer packet to ensure the seller pays the commission in escrow. We attempt to structure all of our transactions such that you do not pay any of the commission directly.

AGENCY: The simple-rule-of-thumb is not to tell the Listing Agent anything that you would not tell the seller yourself. When in personal contact with the Listing Agent, a very important thing to remember is:

“The Listing Agent works for the seller, they are not devoted to your success.”

YOUR PARTNER IN THE PROCESS

When you choose me as your Buyer’s Agent, you’ll have me at your side every step of the way:

• Understanding Loan Programs, Down Payments & Closing Costs

• The Power of having a Mortgage Pre-Approval cannot be overstated.

• Meet with you in person to discuss your needs & desires for your new home.

• Home Search: Realtor MLS, Real Estate Websites, & Off Market Homes

• View homes together that interest you & meet your criteria.

• Making an Offer: Sales Comps, Terms, Condition, Price, Counters, Acceptance

• Open Escrow: Inspections, Disclosures, Reports and Negotiation of Repairs/Credits

• Closing: Loan Approval, Wiring of Funds, Final Walk-Thru, Closing, Possession

I will give you the insights and information you need to have confidence in your decisions. I do not give legal or tax advice, so you will need to seek out outside council on legal and tax matters. My duties begin once we sign the Buyer Representation Agreement.

Representation

STEP BY STEP

INSPECTION CONTINGENCIES

LOAN PROGRAMS & PRE-APPROVAL

The first step in any home search is finding out exactly how much home you can afford and securing the financing to make the purchase.

The amount you can borrow depends on many things: loan programs, down payment, credit score, employment, and financial reserves. While you can get a rough estimate through pre-qualification in a matter of 15 minutes, taking the extra step to obtain a full pre-approval by submitting a complete application to your lender will give you some added advantages:

• Understand your financial condition & things you can do to im prove borrowing power.

• Know exactly how much home you can afford before you begin your home search.

• Loan pre-approval gives you an advantage when there are multiple offers.

• Even if there are no other bidders, your mortgage pre-approval lets the seller know that you’re fully prepared to buy their home… the seller will give you their best price.

I urge you to begin the pre-approval process with your trusted lender as soon as possible.

THE PRE-APPROVAL PROCESS

Here are some of the documents that you will provide your lender to get the pre-approval process started:

Income

Current pay stubs, usually for last two months

W-2s or 1099s, usually for last two years

Tax returns, usually for last two years

Assets

Bank statements

Investments/brokerage firm statements

Net worth of businesses owned (if applicable)

Debts

Credit card statements

Auto & Student Loan statements (if applicable)

Alimony/child support payments (if applicable)

Mortgage information on other properties you own (if applicable)

Your lender will take the information, submit it loan underwriting, and the system will return a pre-approval… or, they may ask for additional information. Obtaining the information requested by underwriters promptly will get you the pre-approval certificate more quickly!

THE ROLE OF THE REALTOR MLS

The Listing Agent has the responsibility of uploading accurate information about the property along with the photos to the Realtor Multiple Listing Service (MLS). Then, the listing is shared by the MLS server to other real estate websites. Whether you find a new listing on my website, or a few hours later on Zillow, Realtor.com, or Homes.com… The listing will always be in the Realtor MLS first!

I will set up an Automatic MLS Search, so you are immediately notified when there is a New, Back-onMarket, or Price-Reduced listing which meets your parameters.

Zillow and other real estate websites do not show homes which fall in these status categories:

• HOLD: Off the market temporarily and will come back on the market.

• EXPIRED: Did not sell during the scheduled time it was on the market.

• CANCELED: Removed from the market prior to the listing expiration.

• WITHDRAWN: Removed from the market but may come back on market.

As an added service, I will screen the off-market listing categories for homes which meet your parameters, then I will reach out to the listing agents and/or homeowners to see if they would consider an offer from you.

THE ROLE OF MY WEBSITE

My website has a direct connection to the Realtor MLS and gives you access to property listings in most areas of Southern California.

The property data is very current, and the site has been designed for ease-of-use.

Q: What is the “first stop” online for your home search?

A: My website… You are going to love it!

It is fully mobile responsive so you can search on your phone, tablet, or desktop computer.

Not only is it an easy way to check out all the available properties in your preferred area, it’s also another way for me to get to know the types of properties that you like. When you sign into the website, and save your searches, I can see which homes you have viewed.

Also, I can set up automatic home search links for you where you can quickly see all the homes in your target neighborhood with a quick tap of your figure on your phone, tablet, or desktop.

I FIND OFF-MARKET HOMES

It is estimated that 40% of the homeowners in SoCal have a mortgage which is 2.75% or less. These owners are very unlikely to sell in the near term. Experts say the inventory of homes will not reach the Pre-Covid levels for many years.

If your plan is to check Zillow for the 10th time today to see if there are any new listings, you need a better way to find a home.

We live in an age of information. I can search databases to locate all homes which have the attributes you are looking for: Location, living area, bedrooms, bathrooms, lot size, stories, garage spaces, and more. Then, I will harness technology and proprietary databases to filter the home list to intelligently identify homeowners who are more likely to sell.

When you work with me, I identify the Off-Market Homes which are suitable for you to purchase… and I will contact the owners to see if they will sell to you before anyone else has a chance to buy the home.

VIEW HOMES TOGETHER WHICH INTEREST YOU

When you see a property you like, we will go look at the inside together. We may look at several homes in a day or a weekend. Perhaps you will see a home you really like in the first few showings… but do not get discouraged if it takes longer.

If present, the Listing Agent will be listening to what you say (remember agency relationship).

The less you interact with the Seller’s Agent, the better. When possible, let me set up private showing for you. Be aware that some homes have security cameras with audio. Do not say anything inside the home that you would not want the seller to hear… they might be listening.

Eventually you will find something that compares very favorably against the other homes you have seen, and it will be time to move forward to the next important step.

MAKING AN OFFER TO PURCHASE

There are many factors that influence the market value of a home. I will give you the insight and information you need to make an offer. Some initial factors to consider when writing an offer include:

• Why is the homeowner selling?

• How long the home has been on the market?

• Has the price has been reduced, when and how much?

• Other items included in sale (furniture, TVs, electronics, spa, etc.)?

• What do recent similar neighborhood sales indicate regarding the value?

• Are there are multiple offers… is there a deadline for submitting an offer?

• What terms can we offer that cost us little but can give our offer an advantage: Short or long escrow, rent back for seller, etc.

Once the offer is written, I will present it to the seller’s agent. The seller can accept, reject, or counter your offer to start the negotiation process. If all goes well, the negotiations with conclude with price and terms being agreeable to you and then the escrow can be opened.

ESCROW OPENING & INSPECTIONS

Once your offer has been accepted, the escrow process begins. Here are some of the typical steps involved.

Deposit – The standard California Association of Realtors purchase agreement form calls for the buyer to wire the earnest money deposit to the escrow company within 3 business days of acceptance.

Inspections – Most property sales are contingent on the results of a home inspection, which is paid for by the buyer. The inspection typically occurs within 10 days of offer acceptance and includes a review of the home’s exterior elements like the roof, stucco, windows, and drainage, as well as kitchen and bathroom fixtures and appliances, and finally mechanical systems like heating and cooling, plumbing and electrical.

Insurance – Verify availability and cost of homeowners insurance. Determine if extra coverage for flood, fire, earthquake coverage is required or desirable.

Disclosures & HOA Documents – The seller is required by best practices and statute to disclose known defects in the home, and there will be a packet of disclosure forms provided to you for review. If the home is part of a Homeowners Association, you will also receive a packet of information from the association management company.

The Preliminary Title Report – will verify the seller’s ownership of the property and ensure that there are no claims against the title of the property which would prevent its sale to you. The report will also identify easements, CC&Rs, and there will be a plat map showing the measurements of the lot.

The Natural Hazard Report – will indicate if the property is in a flood zone, earthquake zone, fire responsibility zone, etc. It will also provide a list of bond measures approved by the state, municipalities, and voters which apply to the property tax bill for the home.

The Structural Pest Control (termite) Report – will indicate if there is any active infestation of termites or dry rot in the structure and will propose methods (and cost) of repairing damage and/or eradicating the pests.

Request for Repair – There is no perfect house, and the inspector will often also note items that are purely cosmetic. If we find items of concern, we will follow the normal process of submitting a “Buyer’s Request for Repair”. Over a day or two, we will negotiate for repair or a credit for the items. If we arrive at an impasse with the seller, you can cancel escrow and obtain a refund of your deposit.

Removal Contingencies Except Loan & Appraisal – Once the all the reports have been reviewed to your satisfaction and the Request For Repair negotiations have been completed, the next step is to remove all contingencies except for the loan & appraisal, and move toward the final steps of the escrow.

THE CLOSING

While you were working on the inspections, your lender, escrow, and title company were very busy.

With the inspection contingencies removed, it is now time to focus on the last few items remaining before you get possession of the property.

Appraisal – As a standard part of the mortgage process, your lender ordered an appraisal report. If the appraised value comes in below the contract price, we may attempt to negotiate with the seller to reduce the price.

Final Loan Approval – After submission of updated financial statements or other items requested by lender, the lender will give final loan approval.

Closing Disclosure – The lender will issue a document known as the Closing Disclosure (CD) about five days before the loan documents are issued.

Final walk-through – If it’s requested in the contract, you’ll be given the chance to look at the home to make sure it’s in the same condition as when you signed the sales agreement.

Signing Loan Documents – The escrow officer will request a meeting for you to sign the loan documents and any final applicable amendments.

Wiring of Funds to Close – The escrow officer will provide wiring instructions for you to take to your bank so you can wire the funds necessary to cover the downpayment and closing costs.

Loan Funding – The lender will wire the funds for the loan to escrow.

Recording – The title company will arrange the recording of the grant deed, which transfers title of the home to you at the County Recorder’s Office.

Confirmation – For morning recordings, the title company will provide confirmation of the recording by about noon… for afternoon (special) recordings we will hear by about 5pm. When they notify us of the confirmation of the recording, we say the transaction is “closed”.

Possession – You will get the keys and possession of the home per what was agreed in the purchase agreement. If the house is vacant, you will often get possession immediately after confirmation. If the seller is still in possession at close, typically they will move and give you the keys within 3 days.

LET’S GET STARTED

Your home-buying needs are one of a kind… Would you like me to help you?

• I am committed to customer satisfaction, and will represent your interests with the utmost care, honesty, integrity, and discretion.

• Using the fantastic resources, tools, & skills of our brokerage, I will help you find the best available home for your needs at the price & terms which meet your desired budget.

• With the help of experts, I will assist you with inspections & due diligence on the property to identify hidden defects… and negotiate repair or resolution for items found.

• I will follow up with escrow, title, & the lender to close the sale in a smooth, timely manner.

• During the home buying process, I will provide proven, powerful, and personal service.

• I answer my phone and respond to text & email messages promptly.

If you are ready, I am ready. Let’s get started with the Buyer Representation Agreement.

1.PARTIES: (“Buyer”), and (“Broker”) haveenteredintoaBuyerRepresentationAgreement,dated ,beginningon (date)(“Representation Agreement”)fortheacquisitionofproperty(“Property”),asdescribedtherein.

COLDWELL BANKER-Campbell Realtors

2.BUYER'SFINANCIALANDPERSONALINFORMATION: BuyerandBrokeragreethatitisbeneficialtobothifBuyeridentifies,in writing,Buyer'sfinancialconditionandpersonalinformation("PersonalInformation”)thatBrokercanuseinassessingandidentifying propertiesthatmaybesatisfactorytoBuyer.IfBuyerdoesnotqualifytopurchasethetypeofpropertyforwhichBuyer isinterested, BrokerandBuyermaymutuallyalterthetermsoftheRepresentationAgreement,orBrokermaycancelthatagreement.

3.PROPERTYFINANCINGINFORMATION (whereapplicable,checkallthatapply):

A.Amountofdepositavailable:$

B.Amountofdownpaymentavailable:$

C.Source(s)ofdepositanddownpayment: Savings(cashinbank) Retirementaccount Gift Loan Assistance program, Saleofexistingproperty( Alreadysold, Alreadyincontract, Notyetlisted), Other

D.Amountofadditionalfundsavailableforbrokercompensationandclosingcosts:$

E.Sourceofadditionalfunds:

F.MaximumLoanAmount:$

G.LenderInformation: (1)CompanyName: (2)LoanOfficername: (3)Phone: ,Email: (4) Pre-qualified, Pre-approved, Fullyunderwrittenpre-approval

H.Financingtype: Conventional, FHA, VA, Other

NOTE: IfBuyer'spreferredfinancingorlenderdoesnotallowBuyertopaycertainclosingcosts,includingbrokercompensation, BuyerwillneedtorequestthatSellercompensateBuyer'sBroker.

I.Maximummonthlyhousingexpense (forPITI,HOAfees, other ):$

4.OTHERFINANCIALINFORMATION:

A. 1031exchange, Expectedlegalsettlement, Expectedinheritance

B. Buyerintendstoincludeacontingencytosellanotherpropertyaspartofanytransaction(seeC.A.R.FormCOP)

C. Other:

5.PERSONALINFORMATION:

A.CurrentHousing: Own CurrentlyRent Other

B.PropertyOwnershipExperience: Firsttimebuyer, #ofpropertiespreviouslypurchased: One, 2-5, Morethan5, #ofpropertiescurrentlyowned:

C.RealestateRelatedExperience: R.E.broker R.E.salesperson Contractor R.EInvestor Trade(ex.Plumber, electrician,landscaper):

D.TimeConstraints: (e.g.Jobrelocation,saleofexistinghome,schoolstartdate):

E.ReasonsforPurchase:

F.Other:

6.CONFIDENTIALITY: Thefinancialandpersonalinformationidentifiedhereinareintendedasconfidentialinformationasthatterm isdefinedinCivilCode§2079.13etseq.RegardlessofagencyrelationshipinanytransactioninvolvingBuyerandBroker,the informationwillnotbedisclosedtoanysellerorseller'sagentexceptasBuyerauthorizesBroker.

7.IDENTIFICATIONOFANDCHANGESTOFINANCIALANDPERSONALINFORMATION: BuyerrepresentsthatBuyerisnotaware ofanyotherfinancialandpersonalinformationthatwouldaffectBuyer'sefforttoacquireproperty.Buyerhasnotmadeanyverbal representationstoBrokerofadditionalfinancialandpersonalinformation.BuyeragreestonotifyBroker,inwriting,ofanychangeto Buyer'sfinancialandpersonalinformation.

Bysigningbelow,Buyerunderstands,acknowledgesandthatitisBuyer'sresponsibilitytodeterminetowhatextentany propertymeetsBuyer'sfinancialandpersonalneedsandabilities.

Buyerhasread,understands,andreceivedaCopyofthisBuyerFinancialandPersonalInformation.Buyerisencouragedto readitcarefully.

Buyer Date:

IacknowledgereceiptofacopyofthisBuyerFinancialandPersonalInformation.

RealEstateBroker(Firm) DRELic#

COLDWELL BANKER-Campbell Realtors

By(Agent) DRELic# Date:

©2024,CaliforniaAssociationofREALTORS®,Inc.UnitedStatescopyrightlaw(Title17U.S.Code)forbidstheunauthorizeddistribution,displayandreproduction ofthisform,oranyportionthereof,byphotocopymachineoranyothermeans,includingfacsimileorcomputerizedformats.THISFORMHASBEENAPPROVED BYTHECALIFORNIAASSOCIATIONOFREALTORS®.NOREPRESENTATIONISMADEASTOTHE LEGALVALIDITYORACCURACYOFANYPROVISIONIN ANYSPECIFICTRANSACTION.AREALESTATEBROKERISTHEPERSONQUALIFIEDTOADVISEONREALESTATETRANSACTIONS.IFYOUDESIRELEGAL ORTAXADVICE,CONSULTANAPPROPRIATEPROFESSIONAL.Thisformismadeavailabletorealestateprofessionalsthrough anagreementwithorpurchase fromtheCaliforniaAssociationofREALTORS®.

PublishedandDistributedby:REALESTATEBUSINESSSERVICES,LLC. asubsidiaryoftheCaliforniaAssociationofREALTORS® BFPI7/24(PAGE1OF1)

Banker, 1720 Pacific Coast Hwy Ste 101 Huntington Beach, CA 92648

Scot Campbell

BUYERFINANCIALANDPERSONALINFORMATION(BFPIPAGE1OF1) Phone: Fax: ProducedwithLoneWolfTransactions(zipFormEdition)717NHarwoodSt,Suite2200,Dallas,TX 75201 www.lwolf.com

(C.A.R.FormBIPP,7/24)

ThisBuyerIdentificationofPreferencesandPriorities,No. isintendedtosupersedeandreplaceanypreviouslydatedBuyer IdentificationofBuyerPreferencesandPriorities.

COLDWELL

BANKER-Campbell Realtors

1.PARTIESANDPROPERTY: (“Buyer”), and (“Broker”) haveenteredintoaBuyerRepresentationAgreement,dated ,beginningon (date)(“Representation Agreement”)fortheacquisitionofproperty(“Property”),ifapplicableasdescribedtherein.

2.IDENTIFICATIONOFBUYERPREFERENCES: BuyerandBrokeragreethatitisbeneficialtobothifBuyeridentifies,inwriting, Buyer'spreferencesandprioritiesforthepurchaseofProperty.Althoughtheinformationprovidedhereinisonlyintendedtorepresent ageneralexpressionofBuyer'sneeds,wantsandconcernsasofthedatesignedbelow,Brokerwillusetheinformationtonarrowthe parameterBrokerusesinsearchingforpropertythatmightbeacceptabletoBuyer.BuyeracknowledgesthatBuyer'spreferences andprioritiesmaychangeovertime,andthatcurrenthousinginventoryandothermarketconditionsaswellasBuyer's financial positionwilldeterminehowmanyofBuyer'spreferencesandprioritiescanbeachievedinacquiringProperty.Manybuyersultimately makecompromiseswhenchoosingwhichpropertiestomakeoffersonandacquire.ItisBuyer'sresponsibilitytodeterminewhether anypropertymeetssome,all,orenoughofBuyerspreferencesandpriorities.

3.BUYERPREFERENCESANDPRIORITIES(checkallthatapply):

A.PriceRange: $ to$

B.PropertyUse: Primaryresidence, Secondhome, Incomeproducing, Relativepersonaluse Other

C.PropertyType:

SingleFamilyResidence, Duplex, Triplex, Fourplex Condominium( apartmentstyle, townhousestyle) TenancyinCommon Manufactured/Mobilehome,( Inapark, Onitsownlot)

Pre-owned Newconstruction

D.PropertyFeatures:

Minimum#ofbedrooms: Minimum#ofbathrooms: Minimumsquarefootage: Maximumsquarefootage: Singlestory, Multi-level, Cornerlot

Yard( Grass, Droughttolerant), Pool( built-in aboveground)

SolarPanels( leased/liened, ownedoutright, any), Gasappliances, Electricappliances

Schooldistrict:

Accessibility/Disabilityfeatures:

E.Location: City(ies): County(ies):

F.Other (AnyotherdesiredfeaturesormattersofconcernorimportancetoBuyer,whetherbasedonpreviousexperience,prior offers,expectations,intendedfutureuse,financialabilitytomakerepairsorimprovements,orotherwise):

4.CONFIDENTIALITY: Thepreferencesandprioritiesidentifiedhereinareintendedasconfidentialinformationasthattermis definedinCivilCode§2079.13etseq.RegardlessofagencyrelationshipinanytransactioninvolvingBuyerandBroker,these preferencesandprioritieswillnotbedisclosedtoanysellerorseller'sagentexceptasBuyerauthorizesBroker.

5.IDENTIFICATIONOFANDCHANGESTOPREFERENCESANDPRIORITIES: BuyerrepresentsthatBuyerisnotawareofany othersignificantpreferencesandprioritiesaffectingBuyer'sefforttoacquireproperty.Buyerhasnotmadeanyverbal representationstoBrokerofadditionalpreferencesandpriorities.BuyeragreestonotifyBroker,inwriting,ofanychangetoBuyer's preferencesandpriorities.

Bysigningbelow,Buyerunderstands,acknowledgesandagreesthatBrokercannotguaranteethatanyproperty willmeet anyorallofBuyer'spreferencesandprioritiesandthatitisBuyer'sresponsibilitytodeterminetowhat extentanyproperty meetsBuyer'spreferencesandpriorities.

Buyerhasread,understands,andreceivedaCopyofthisIdentificationofBuyerPreferencesandPriorities.Buyeris encouragedtoreaditcarefully.

Buyer

IacknowledgereceiptofacopyofthisBuyerWantsandNeeds.

Date:

RealEstateBroker(Firm) DRELic#

By(Agent)

COLDWELL BANKER-Campbell Realtors

Date:

PublishedandDistributedby:REALESTATEBUSINESSSERVICES,LLC. asubsidiaryoftheCaliforniaAssociationofREALTORS® BIPP7/24(PAGE1OF1)

Coldwell Banker, 1720 Pacific Coast Hwy Ste 101 Huntington Beach, CA 92648

BUYERIDENTIFICATIONOFPREFERENCESANDPRIORITIES(BIPPPAGE1OF1) Phone: Fax: ProducedwithLoneWolfTransactions(zipFormEdition)717NHarwoodSt,Suite2200,Dallas,TX 75201 www.lwolf.com