An escrow company is an independent third party that communicates with you during the escrow period and coordinates all business arrangements between MBK Homes, you, the lender, county recorder and in some cases the title company. It collects and distributes funds, executes deeds and manages needed paperwork to facilitate the terms of your purchase agreement. Escrow is opened when a deposit is made, cashed and held in an escrow account. It marks your agreement to start the loan approval process in good faith with the goal of closing escrow. To close escrow, all papers and money are deposited with the escrow agent within the agreed-upon time frame. Documents are recorded and all parties get the documents and money due to them.

The amount needed is based on actual loan terms, the additional options you choose and prorations of loan fees and property taxed calculated with your actual closing date. Your escrow agent, New Home Consultant and loan officer will provide you with a closing estimate of funds needed.

The title company provides you with a title insurance policy ensuring the validity of your new home's title. During escrow, it will give you a "preliminary title report" showing any easements, disclosures or restrictions, liens, defects or other encumbrances considered exceptions to your title insurance coverage. At close of escrow, you'll receive your title insurance policy.

Also known as "an offer to purchase", an PSA is a legally binding contract setting forth terms and conditions of a purchase, and sale of an agreed upon real estate property. The terms and conditions must be agreed to and signed by both seller(s) and buyer(s).

This is a mortgage in which the interest rate is adjusted periodically based on a pre-selected index.

We encourage you to use MBK Home's preferred neighborhood lender. Our lender is prescreened and selected based upon experience, competitive rates and attentive customer service. You'll benefit from our close communications with our preferred lender, a relationship that allows us to track the progress of your loan and assure a timely closing. Your purchase agreement requires that you submit a complete loan package within 14 days, obtain unconditional loan approval within 30 days and maintain an approved loan status throughout escrow.

VOD - Verification of Deposit: A document signed by the borrower(s)' financial institutions verifying the status and balance of his/her/their financial accounts. P&I - Principal and Interest: This is the largest part of a mortgage payment and includes principal and interest. The principal is the part of the payment that is the unpaid amount borrowed and is reduced with each payment, building home equity. The interest is the part reflecting the fee charged for borrowing the money. PMI - Private Mortgage Insurance: This is an insurance policy the borrower buys to protect the lender from non-payment of the loan. PMI policies are usually required if you make a down payment lower than 20 % of the home's sales price.

A Buyers Agent is a real estate agent representing the buyer and owes fiduciary duties to the buyer. A Sellers Agent is a real estate agent representing the seller and owes fiduciary duties to the seller. A Dual Agent is a real estate agent representing both the buyer and the seller. In almost every state, dual agency is illegal and unethical without the written consent of both buyer and seller.

Within 24 hours an escrow officer will return the signed documents to your lender, requesting that your loan be funded. The lender then reviews your documents for accuracy, a process that requires between 24 and 48 hours. Delays in funding your loan will occur if any loan conditions are outstanding. When all conditions have been met to the lender's satisfaction, your loan will fund and escrow will close on the following day.

These are costs that only occur once. They include loan fees, escrow fees and title fees. Recurring costs are ongoing costs, including fire insurance premiums, tax impounds and prorations.

Funding is when the lender disperses the loan proceeds to the title company. Recording is when the grant deed has recorded at the county recorder's office in your name.

Your lender will require that you obtain both title policy and hazard insurance. Both policies protect the interests of you and your lender in your property.

The extra premium collected for three months is deposited in your account and remains there as a buffer for unforeseen items such as an insurance premium increase. Your lender will collect these premiums monthly beginning with your first payment, ensuring there will be sufficient funds in your impound account to pay the following year's insurance premium when it becomes due.

Please consult your professional tax advisor on the tax benefits of home ownership.

Certain MBK communities will not accept a home sale contingency. Therefore, notify your New Home Consultant and lender immediately. If acceptable to MBK prior to your purchase, at MBK's sole discretion we can execute a Contingent Sale Addendum, allowing MBK Homes to monitor the listing and sale of your existing home with your listing agent and escrow company. If you do not execute this Addendum and you are unable to sell your home, you'll still be legally obligated to purchase your new MBK home.

You do not need a realtor to purchase an MBK Home. Our Sales Staff are all licensed California real estate agents and as such will disclose all information pertaining to the purchase of the home to you.

This organization of homeowners oversees regulations and expenditures within a community. It is typically responsible for the development of an annual budget, the collection of assessments homeowners pay to maintain and repair "common areas," and the creation and enforcement of various rules and guidelines for community living. Most homeowners associations have a board of directors elected annually, ensuring efficient and democratic leadership. Each homeowner within the community is a member of the association with voting privileges.

Those terms are used interchangeably. Contact your insurance agent for a more detailed explanation.

Created by the California State Legislature in 1982, Mello-Roos and Assessment Districts are special tax districts. These districts collect funds to pay for vital facilities needed by new home communities - streets, schools, water, drainage, parks, sidewalks, median landscaping, sewer systems - which otherwise might not be available to initial homeowners in the community. An assessment District or Mello-Roos District is formed by local government and can include the City Council, Board of Supervisors and school districts. They issue bonds (essentially loans) to fund community facilities. Homeowners pay assessments to repay the bonds, which are added to their annual property tax bills. Each community has its own rate, and assessments can increase or decrease. Depending on where your home is located, you might have the option of paying the assessment in one lump sum. Sometimes assessments are tax deductible. This explanation is a summary and not intended to take the place of more detailed explanations and legal disclosures, so you may need to consult a financial advisor. When you make your home purchase, you'll receive complete information on Mello-Roos and Assessment Districts.

The Mello-Roos Act of 1982 allows certain public entities, such as cities, counties, schools and local districts, to finance public infrastructure and certain governmental services. The public entity forms a community facilities district and, after a public hearing and approval of two-thirds of the district's electorate, may levy a special tax on the real property within its boundaries, which is subject to voter approval within the proposed district Assessment districts, on the other hand, have been used to finance infrastructure improvements such as streets, water, sewer and utilities. An assessment district can be formed by a city, county or other public entity after a public hearing, and levy an assessment on the real property in the district to finance public improvements, like streets or roads.

In Mello-Roos districts, rates can increase from year to year based on the charge formula or additional bonds being issued to pay for different improvement phases. Property taxes can also increase depending on the area you live.

There are many reasons a new home is preferable to an older home. First and foremost are reasons like getting the fresh, modern design you're seeking for the way you live today, and the fact that there are fewer things to go wrong with a brand new home. Other good reasons include the opportunity to customize your home with the flooring, cabinets and countertops reflecting your taste and standard of quality, and that everything in your new home comes with a warranty. Special benefits of an MBK home include the latest in building innovations, materials and energy efficiency. There are also those advantages we take for granted that aren't always part of an older neighborhood, like sidewalks, attractive street landscaping and underground utilities.

Covenants, conditions and restrictions (CC&Rs) are governing documents that dictate how homeowners associations operate, and what rules homeowners and their tenants and guests must obey. CC&Rs usually include restrictions on types of architectural changes allowed, recreation facilities rules, and other rules such as number of pets per household. They are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws. CC&Rs help maintain the value of both individual properties and the community as a whole by establishing standards with which owners must comply.

After selecting the best land for building homes, we draw up plans and get city or county approval. Once we've purchased the land, we prepare the site for construction, trench and install plumbing, pour foundation and frame walls. Then we build the framework supporting the roof and install the heating, plumbing, electrical systems and any fireplaces. Next come roofing, lathing, insulation and drywall, as well as the installation of cabinets and countertops. Once all this is complete, application of the exterior surface, like stucco is done. Work then moves inside, including plumbing fixtures and door hardware, painting, appliance installation, as well as adding a roof. Finally, we put in the driveway landscaping, carpeting and tile, paint the exterior trim. And you're ready to move in!

You'll be invited to tour your new home at several key points during construction: the Scheduled Framing Tour, the Drywall Complete Tour and the Post Hard Surface Installation Tour. You'll also take a New Home Tour prior to closing. You'll be provided with a hard hat for safety during all tours and accompanied by an MBK Homes staff member. No one under age 18 may visit the site, and no one can take an unscheduled tour of their home for safety and insurance reasons.

MBK provides many opportunities for you to view your new home with a qualified MBK team player throughout the escrow process. You may have a home inspector look at your home only after escrow closes.

Once your New Home Consultant receives confirmation from escrow that the grant deed has recorded in your name, and you are now the owner of the property, you will receive your keys. However, move-in may be delayed because of variables affecting construction, such as inclement weather, labor shortages or materials delays. So even though you've closed escrow, your move in date may be postponed until all work is completed.

A host of personalization choices is available through our design options. Your time frame in which to select from these options depends on when you sign your purchase agreement and the point of construction of your home. Homes are built in phases with materials purchased months in advance of installation, so strict cut-off dates are applicable. Consult your New Home Consultant for option selection availability.

Once you've scheduled your New Home Tour, you should contact all utility providers (gas, electric, sewer, trash) and apply for new residential service in your name by this date. Your utilities can be turned on only after the city or county completes its final inspection. MBK Homes will ensure that the utility companies receive the final inspection notification, but it's your responsibility to coordinate with them directly.

During this tour, you'll have a thorough walk-through/new home orientation to demonstrate your home's features, review care and maintenance information, and check for any items needing attention or adjustment before closing. This is the perfect opportunity to become familiar with your new home systems and location of all utilities. While MBK Homes strives to have your home in ideal condition at tour time, this is often not possible. Items that have not been completed prior to your move-in date due to delays in parts delivery or subcontractors scheduling will be fixed by MBK Homes within 30 days after close of escrow.

Your investment in customizing your new MBK home w/options and flooring is a very personal choice and may vary based upon many factors such as how long you plan to live in the home, your budget and payment sensitivities, etc. An average guideline is planning to spend around 10% of the price of the home.