Buyer Questions & Answers
This page addresses advanced and technical questions that often arise after preparation begins. Reviewing these topics early reduces uncertainty when timing becomes critical.
Q1. Do I need underwriter approval before touring homes?
Underwriter approval is not legally required before touring. However, stronger financial verification often improves access, communication, and credibility with listing agents and sellers. The appropriate level of approval depends on timing, competition, and property type.
Q2. How does title vesting affect ownership?
Title vesting determines how ownership is legally held. Common structures include sole ownership, joint tenancy, community property, and trust ownership. Each carries legal and tax implications. Buyers should consult qualified legal or tax professionals when selecting a vesting structure.
Q3. What is Proposition 19, and how can it affect property taxes?
Proposition 19 affects property tax reassessment rules in California. It may allow eligible homeowners to transfer their tax base under specific conditions. Eligibility and long-term tax impact depend on age, disability status, and transaction type. Professional tax guidance is recommended before relying on assumptions.
Q4. How do appraisal gaps affect negotiations?
If a property appraises below the agreed purchase price, the lender will base financing on the lower appraised value. Buyers may need to renegotiate the price, increase cash contribution, or terminate the agreement depending on contingency timelines. Understanding appraisal risk before writing an offer reduces friction later.
Q5. What happens if financing changes during escrow?
Material financial changes during escrow can trigger reapproval or delays. New debt, employment changes, or unexplained deposits may affect qualification. Maintaining financial stability during escrow protects approval status.
Q6. How should down payment funds be structured?
Down payment funds must be sourced, documented, and verifiable. Large unexplained deposits, cash transfers, or informal loans may be excluded from qualification. Planning the structure and timing of funds before entering escrow reduces underwriting disruption.
Q7. How do insurance and dispute provisions affect risk?
Homeowners insurance, title insurance, mediation clauses, and arbitration provisions define risk allocation in a transaction. Buyers should review these documents carefully and seek clarification when necessary. Risk management begins before closing, not after.
Q8. Are probate or trust sales different for buyers?
Probate and trust sales may involve court timelines, variations in disclosure requirements, or confirmation procedures. Buyers should understand timing expectations and property condition before entering into these transactions. Preparation is especially important when legal oversight is involved.
A Practical Perspective.
Advanced questions are easier to resolve before deadlines compress options. Addressing structure, financing, ownership, and risk early reduces last-minute decision pressure.
If you have a question not addressed here, you are welcome to schedule a brief conversation for clarification.