Helpful Home Buyer Information Booklet

Austin Lampson
Sr. Mortgage Consultant
NMLS #517060
805.335.8200
austin@austinlampson.com
www.austinlampson.com
The material contained herein may have been obtained from a third party (selement agents, tle companies, or credit agencies)
and is deemed to be accurate and reliable, but we do not make any representaons as to its completeness and there is no guarantee
that it is without errors. The material provided is for informaonal and educaonal purposes only and should not be construed
as investment.

Updated August 2016

Congratulations!
You’ve just taken the first step towards a new home.
Especially these days, there is a lot that goes into the process. This book is
designed to help you through the process, and give some information about
homeownership in general.
If you have any questions throughout the way, just ask!
We are here to help.
Table Of Contents:
1.) Our Team & General Info
2.) Loans
3.) Escrow
4.) Insurance: Title & Homeowners
5.) Tax Info
6.) Glossary of Terms
7.) Worksheets
www.austinlampson.com

Our Team &
General Info
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

Austin Lampson
Mortgage Loan Officer
805.335.8200
Serving all of California out
of beautiful Santa Barbara

www.austinlampson.com
Meet Team Lampson
OnQ Financial
Ausn Lampson has over 15 years in the lending industry. She is a
graduate of UCSC, with a degree in Global Economics. She rejoined
OnQ Financial in 2013, as a Senior Mortgage Consultant.
Having a broad depth of knowledge in all aspects of the mortgage
process, Ausn offers her customers the well‐rounded experience
to get the job done and works with her team to provide the highest
level of customer service. She lives in Carpinteria with her
husband of a dozen years and their Boston Terrier, Haley.
NMLS #517060 | ausn@ausnlampson.com
Sco Lindberg is our Team Mortgage Consultant. His role
is to deliver WOW service to help guide you through the
paperwork and applicaon process, so that we can best
address your financing needs. There is a lot of moving
parts to the process and he is there to make it go as
smooth and easy as possible for you. A graduate of UCSB,
he has been in the real estate industry since 2007. Sco is
married, living in Santa Barbara, with his wife and their
two cats, Mr, Keats and Cinder.
NMLS #321923 | sco.lindberg@onqfinancial.com
Cindy Sallee is our Transacon Coordinator. She communicates
with clients, realtors, and all other pares during the transac‐
on, resulng in a smooth, efficient experience. Always ready
with a smiling face and helping hand, she has worked in all
aspects of Real Estate. From Escrow Officer to agent assistance
to closing, she pools her talents together to service clients at
the highest level. She grew up in Eugene, Oregon and is passionate
about the Oregon Ducks!
cindy.sallee@onqfinancial.com
Heather Ronan handles markeng, events, and
client relaons. She also assists you through the
applicaon process and tries to make the process
flow smoothly as possible. She wears many hats
around the office and will greet you with a big
smile and a helping hand as you enter the office.
She moved to Santa Barbara from the East Coast
aer graduang college and she has loved every
minute in this beauful city.
heather.ronan@onqfinancial.com
Our team can be reached at (805) 335‐8206
Our behind‐the‐scenes staff include our own in‐house processing, underwring,
closing, and funding departments. Our expert staff will efficiently expedite your enre
transacon. We also employ the most advanced mortgage technology available. The
Internet, our cung‐edge soware, and underwring system all coordinate to speed
your mortgage process and deliver the greatest rates and terms to you.
We pride ourselves on providing superior customer service and creating satisfied clients. We work hard to exceed your expectations.
It is our goal to keep you as a client for life. We want you to feel comfortable recommending us to your family and friends.
On Q Financial, Inc. is an equal housing lender. NMLS #5645
These programs are available to only qualified borrowers. These programs are subject to change without notice.
Underwriting terms and conditions would apply to qualified borrowers. Some restrictions may apply.
NMLS #5645
AZ Lender #BK-0906866
www.onqfinancial.com
068i0000000ArRm

Loans
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

What is a Pre-Approval?
A pre-approval is the lender’s verification that they have verified your personal and financial
information, as well as that you qualify for the terms of purchase being offered in contract.
Benefits: Strategically positions your offer, advises you of your maximum price point,
and gives you the freedom to discuss your options.
What documents are needed for a pre-approval and why?
Income documents: Paystubs, W2s, Personal Tax Returns
Documents qualifying income for the loan
Asset documents: Bank statements, retirement statements
Documents ability for down payment, closing costs, and reserves
Credit Report: A report from all three bureaus verifying history & obligations
Shows other obligations and confirms credit score. Also lets us know of any issues that
need to be resolved prior to purchase.
How long does it take?
Your pre-approval can only be completed once your complete documentation has been submitted.
Upon receipt, your lender can take 48-72 hours for pre-approval.
What does a pre-approval consist of?
At On Q Financial, we want you to know not just what your loan payment is, but the entire obligations
of the purchase. This includes:
Down payment options and requirements
Reserve requirements
Closing cost estimates
Loan structure options and requirements
The goal is for you to know and understand the requirements, obligations, and benefits of
your mortgage loan purchase.
What should I do to be prepared?
Ask questions! If you’ve heard of any programs, or just are curious, let us know. No question is
unwelcome.
Be open! Let us know what you are thinking, and be responsive to questions and ideas.
Know your comfort zone! Just because you qualify for a certain amount may not mean
that’s what you want to spend. Let us know any concerns you may have, and we will work
within your needs.
Your lender has a fiduciary responsibility to you as their client. It is not our job, but our duty, to keep
your information confidential and act in your best interests.
We are on your side—use us to your advantage!
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

The Life of a Loan
Prepare Loan
Application & Gather
Documentation
Select your new home.
Offer Accepted!!
Inform Realtors,
Borrowers, and Escrow
Set Appointment with
Team Lampson
Discuss financing
options to best suit you
Home Search
Determine Loan Terms
Buyer Fills Out
Application
Team Runs Credit +
Analyzes
Team Prepares Closing
Cost Estimate
Inform Borrowers,
Realtors, and Escrow of
Date Documents will
Arrive
Obtain Formal
Loan Approval
Collect Required
Conditions to Finalize
Loan
Confirm Loan Terms
and Order Documents
Sign Documents and
Send Final Funds to
Escrow
We commit to keep you
informed every step of the
way.
At minimum, you can
expect a call every
Tuesday, and an update
email on Friday.
Our goal is for you to have
the smoothest transaction
possible.
Inform Realtors
and Borrowers
Fund Loan
Record Loan
Receive Final
Closing Statement
Follow-Up After Close.
Answer Questions.

How Purchase Loans Are Made:
A Step-By-Step Walkthrough
1. Pre-Approval: Getting pre-approved for a mortgage allows borrowers to know exactly how much they
can afford. It also confirms their ability to buy at the negotiated price, including verifying your funds.
Buyers should seek the advice of an experienced mortgage professional, our goal who will help determine
which financing options best suit their needs today and in the future.
2. Loan Application: It’s crucial that consumers supply the lender with as much information as possible,
as accurately as possible. All outstanding debts, as well as assets and income, should be included. Withholding
information can hurt you down the line.
3. Documentation: Buyers must submit paperwork supporting the application as well. Information commonly
sought includes pay stubs, tax returns, and account statements verifying the source of the down
payment, funds to close, and reserves.
4. The Hunt: The buyer begins shopping for a house. When the right one is found, the terms of the sale
will be negotiated, including the price and potential terms of the loan being sought.
5. Accepted Offer! You have negotiated an offer on a property, and the sellers have accepted! Now the
clock starts ticking to close on time. We will update the application & move to processing.
6. Title Search: This is the time when any liens against the property are discovered. A lien may have been
placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared
before a transaction can be completed. As a consumer, you can shop for title/escrow.
7. Termite Inspection: While most purchase loans do not require a formal inspection for termite and water
damage, government loans do. If problems are found, repairs may be necessary.
8. Processor’s Review: The processor packages and verifies all pertinent information, then sends it to the
Underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
9. Underwriter’s Review: Based on the information put together by both our team and the processor, the
Underwriter makes the final decision regarding whether or not a loan is approved, as well as what
additional information may be needed.
10. Mortgage Insurance: Many lenders require mortgage insurance when borrowers put down less than
20% on a loan.
11. Approval, Denial, or Counter-Offer: In order to approve a loan, the lender may ask the borrowers
to put more money down to improve the debt-to-income ratio. The borrower may also need a greater
down payment if the property appraises for less than the purchase price. There may also be a counteroffer
to a different loan program.
12. Insurance: Lenders require fire and hazard insurance on the replacement value of the structure. Flood
insurance will also be required if the property is located in a flood zone. In California, some lenders
require earthquake insurance on condominiums.
13. Signing: During this step, final loan and escrow documents are signed and executed.
14. Funding: At this point, the lender sends a wire for the amount of the loan to the title company
(less lender fees).
15. Confirmation of Recording: The lender authorizes the disbursements of loan proceeds. The appropriate
deeds record with county.
16. Close of Escrow: Congratulations! You own your home! All funds have been dispersed, and title to the
property is now in your name.
17. Buyer Begins Making Mortgage Payments.
The Life of a Loan

Credit
Credit Report Ordered
A credit check will be run for a cost of $_________. We will go over the report to
make sure the balances are accurate. If there is any derogatory credit, it will be
addressed because it is a consideration in the approval process of your loan.
Credit Bureaus
There are 3 credit bureaus:
Experian XPN
Equifax (EQ)
Transunion (TU)
Fair, Isaac Model
Beacon Model
New Empirica Model
How Your Score Affects the Loan:
Each bureau has different items reported to them and will provide a score: the lenders
will look at each score. The terms of your loan is typically based on the middle of the
three scores. The scores are based on many variables, the major criteria are:
Number and type of open accounts
Length of time since account was opened
Number of late payments
Amount owed vs. high balances
Remember
The more data, the more robust your report and score can be.
If some type of credit repair is needed, we can refer you to several credit repair specialists.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Credit Scores
FICO scores were developed in 1958 by Fair Isaac Corporation—an Analytics company in
the United States. A credit score is a number, based on a consumers credit report, which
represents the creditworthiness of an individual, or the probability that the person will
pay his or her debts. Meaning, the higher your credit score, the better the chances that
you will be able to repay, on time, your car payments, credit card payments, a mortgage,
loans, insurance, etc.
NOTE: Even the highest FICO credit score doesn’t guarantee that you get what you want
and the worst one may not prevent you from getting at least some sort of loan. This is a
general guideline but offers no guarantees in what sort of loan you may receive.
1. 800-850+ Credit Score: A score of 800-900 is basically flawless credit. An important thing to note
here is that some consumers may have 800 credit scores the minute their credit profile is established,
but without supporting credit history, the score will mean very little to banks and lenders. On the other
hand, a credit score of 800-900 accompanied with years of solid history indicates that the borrower
could be granted the lowest rate on everything from credit cards to auto insurance and mortgages.
2. 720-799 Credit Score: A credit score of 720-799 is considered great credit, and will typically result in
interest rates and approval rates that a credit score in the range of 800-850+ would yield. The only
difference might be a few more pricing incentives at the 800-850+ range, and a more thorough credit
check in this range. But all in all, credit scores in this range are considered excellent and you really
don’t need to worry if your scores fall in this category.
3. 680-719 Credit Score: A score in this range is considered good credit. Although it’s not perfect, you
should still be able to qualify for most loans and auto or rental leases, although interest rates may be a
little higher than those offered to borrowers with excellent credit. There will be situations where a
credit score in this range will prevent you from getting certain types of financing.
4. 620-679 Credit Score: Credit scores in this range are still considered “good” or “ok” by many
creditors, though you may see further restrictions and fewer approvals when attempting to get a loan,
lease, or a mortgage. Scores at this level are fairly common, and no reason for alarm. But it would be
wise to evaluate your score and work to improve it. In this range, it is quite probable that you aren’t
securing the lowest interest rates, and subsequently losing money as a result.
5. 580-619 Credit Score: This is where “ok” and “good” turn to “bad.” Credit scores in this range are
clearly below average, and you will have a difficult time securing a loan, or applying for a credit card. If
you are able to secure financing, you’ll find higher interest rates for low credit scores. If your credit
falls in this range, you definitely need to evaluate your credit report and take measures to raise your
credit score. Many consumers with credit scores in this range may have to work with non-traditional
lenders to secure financing.
6. 500-579 Credit Score: Credit scores in this range are just flat out ugly. If you’ve got a credit score in
this range, there’s a good chance you have a major derogatory mark on your credit report such as a
collection, charge-off, mortgage late, a foreclosure, or a bankruptcy. There is no question that your
credit is in need of serious credit repair. At this level, you must evaluate your credit and act
immediately to turn things around. You’re clearly paying higher interest rates and making credit mistakes
that will impact your life for years to come.
7. Below 500 Credit Score: Credit scores below 500 are the worst of the worst. To fall into this range,
your credit report will definitely contain major derogatory marks, with very little positive data whatsoever.
If your credit score is at this level, you may want to consider speaking with a professional about
your situation. There’s a good chance you’ve got serious financial problems if your credit score is in
this range.

How to Maximize Your Credit Score Quickly
While the following is not required, it is strongly recommended to maximize your results.
Credit cards you currently have:
Look at your credit card limit, and subtract 70% of the limit amount. Never charge
greater than this amount.
This will equal 30%
Example: $1,000.00 limit - 70% = $300.00
Creditors report information to the credit bureaus every 30-90 days and in most cases in
the middle of the month when most people have large balances. They do not report what
you paid but what your current balance is in the middle of the month. Therefore, never
charge greater than 30% of the available credit limit to be safe. In this example, only
charge $300.00 on a $1,000.00 limit.
If no current active credit cards in the last 6 months:
If you do not have at least 2 active, current credit card accounts, you can do the
following which will make up approximately 30% of your credit score:
Apply for 2 secured credit cards today, do not wait. Remember, once these new
cards are opened, your score will drop for approximately 6-12 months. However,
it is better to drop your score now than to wait in most cases. If you do not have
current active credit, it is difficult to raise a score even when removing negative
credit. This will make up 30% of your credit score.
If you have open credit cards with zero credit balances and you have not charged
on it for more than 6 months, charge a small amount such as 5%, then immediately
pay it off. Within 30-90 days, in most cases, you will increase the score because the
account before charging was dormant or inactive. Any credit card that has not
been used with balances for greater than 6 months will typically lower the score.
Do not close any credit cards you currently have:
If you close your credit cards, you will dramatically lower your credit score.
Do not open ANY new accounts without talking to your mortgage consultant first:
In most cases, opening a new account of any type: cars, mortgage, credit cards, etc. will
lower your credit score for 6-12 months. Choose your accounts wisely.
New lates, collections, charge-offs, bad debt of any type:
Will lower your score as much as 107 points, even a late payment of $5.00 can cost you
the loan you want and your credit score. Make all payments including your mortgage
payment even if someone tells your not to. Get your money back later so you do not
have a new mortgage late.

Gift Funds
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Appraisal
Depending on the length of the escrow, the appraisal will usually be done
approximately 10 to 15 days following acceptance of the offer.
An appraisal is an estimated value of a property. It is used by the lender to
ensure the purchase price of the property is reasonable. We hire an
independent appraiser to prepare the appraisal. The appraisal fee will be
paid up front at the time the purchase contract is approved. The appraiser
inspects the property and prepares the appraisal. It is submitted to the
lender and their review team examines the appraisal before the file has
complete loan approval.
Our team will e-mail you a copy of the appraisal when we receive our copy.
If you are refinancing...
The appraiser will call the homeowner to schedule an appointment. The
appraiser will expect payment at the time of the appointment. On Q Financial
will place the appraisal order through Appraisal Tek.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Pre-Closing Costs
In addition to your final down payment and closing costs, there are initial, up-front
costs and funds needed on a purchase.
Earnest Money:
Upon writing an offer, you will need to present your realtor with an agreed percentage.
This must be seasoned money written from your account. Seasoned means these fund
have been in your checking, savings, or investment account for a minimum of two
months.
This money will be held in escrow upon acceptance of your offer by the seller. This
deposit will be credited toward the money that is needed for down payment and closing
costs.
Always write the deposit check out of your own account!
Appraisal:
Upon acceptance of the offer, your loan and appraisal contingency period will begin. In
this time we have to receive complete loan approval which includes the appraisal being
signed off. Appraisals usually run between $400.00 and $800.00 depending upon the
price of the home.
Homeowner’s Certification:
This is a document required by the lender that typically the seller does not pay for on
condos. Most Association Management companies require this to be paid up front by
either a check or credit card—to be determined after being contacted. The cost is $50.00
to $350.00. This is a non-recoverable cost in the event you choose not to buy this
property.
Physical Inspection:
Most buyers make the choice to hire a licensed contractor to inspect the home they just
purchased. This falls into the 17 days to give you, the buyer, the opportunity to look for
any code violations. You will pay the contractor the day he does his inspection. This
usually runs between $350.00 and $600.00. Your realtor will coordinate this for you.
After the checks have been written, you will not have to bring in any more
money until you sign your loan documents, at which time the final down
payment and closing costs are due. This is usually one week before closing.

Closing Costs
Purchase or refinance transactions require services from several entities and each one
has fees connected to the services provided. There are 2 categories of fees:
(1) Non-Recurring
These are one time, possibly deductible fees associated with services
provided.
(2) Recurring or Prepaid
There are not considered fees. These are prorated costs associated with
your monthly costs. These will include interest, taxes, hazard insurance,
homeowners dues, and mortgage insurance.
Non-Recurring
Escrow:
The escrow company charges fees for handling the escrow. It also charges for special
services such as messenger fees or notary fees.
Title:
The title company charges for title insurance and government fees.
Lender:
The lender charges for loan-related fees such as origination fees, credit, appraisal, processing,
and undercutting.
Interest:
Recurring/Prepaid
On a purchase, interest will be paid from the day before closing (also called funding)
until the end of the month.
Insurance:
On a purchase, 1 year premium must be collected. On a refinance, they will have you
bring in enough to bring 12 months current.
Taxes:
Property taxes will be prorated and collected, and if impounds have been requested, the
proper amount will be collected.
HOA:
Homeowner Association fee will be prorated and collected.
Mortgage Insurance:
If this applies to your loan, amounts will be collected.
*If any of the above are due + payable within 90 days of settlement, it will very likely
be required to be paid. FYI

Closing Costs
1. Sales/Broker’s Commission: The commission is typically a percentage of the selling price of
the home and usually paid by the seller. Often two realtors, the buyer’s agent and the seller’s
agent, and their respective brokerage companies, split the commission.
2. Loan Fees: These are fees that the lender(s) charges to process, approve, and make the
mortgage loan.
3. Loan Origination Fee: Sometimes called a “point” or “discount points,” a loan discount is a
one-time charge imposed by the lender or broker to lower the interest rate at which the lender
or broker would otherwise offer the loan to you.
4. Appraisal Fee: The charge, which may vary significantly for different properties, pays for a
statement of property value for the lender, made by an independent appraiser or by a member
of the lender’s staff. The appraiser inspects the house and the neighborhood, and considers
sales prices of comparable houses and other favors in determining the value. The appraisal
does not, however, necessarily detect or discuss defects in the property or title to the
property. As your lender we will provide you a copy of the appraisal.
5. Credit Report Fee: The cost for a credit report, which shows your credit history.
6. Lender’s Inspection Fee: This charge covers inspections, often of newly constructed housing,
made by employees of your lender or by an outside inspector.
7. Mortgage Insurance Application Fee: The fee covers the processing of an application for
mortgage insurance which may be required on certain home loans.
8. Assumption Fee: A fee which is charged when a buyer “assumes” or takes over the duty to
pay the seller’s existing loan.
9. Interest: Lenders usually require that borrowers pay at the close of escrow the interest that
accrues on the loan from the date of funding to the beginning of the period covered by the
first monthly payment.
10. PMI (Mortgage Insurance): Mortgage insurance protects the lender from loss due to payment
default by the borrower.
11. Hazard Insurance Premium: The premium prepayment is for insurance for you and the
lender against loss due to fire, windstorm, and natural hazards. The coverage may be included
in a Homeowner’s Policy which insures against additional risks such as personal liability and
theft.
12. Title Charges: These may cover a variety of services performed by title companies and others
and include fees directly related to the transfer of title and fees for recording, transfer tax,
notaries, etc.
13. Escrow Services: The fee for the services performed by the escrow officer. Typically,
responsibility for payment of this fee is negotiate between buyer and seller when the sales
contract is signed.
14. Recording and Transfer Fees: The sales contract or local custom determines how fees are
split between buyer and seller. The buyer usually pays the fees for legally recoding the new
deed and mortgage loan. The county charges a transfer tax and many cities also have transfer
tax fees.
15. Pest and Other Inspections: This fee is to cover inspections for termites or other pest
infestation of the home. Payment is determined by sales contract or custom.

TRID: What you need to know

Points - Explained
What is a Point?
One point is equal to 1% of the new loan amount.
Why do lenders charge points?
Whenever government regulation state usury law and/or competitive practices prohibit
the lender from charging a rate of interest which would make the real estate loan
competitive with other fields of investments, the lender must seek some method of
increasing the yield for the investors. By charging “points,” the lender can bring the real
estate loan up to those other investments.
Are points called by different names?
Yes. Some examples are: Loan Origination Fee, Commitment Fee, Discount Fee,
Warehousing Fee, Funding Fee, etc.
Who must pay the points?
FHA: The buyer is usually charged with the Loan Origination Fee. The Discount Fee can
be paid by the buyer of seller.
VA: The buyer is usually charged with the Loan Origination Fee and the Funding Fee.
Discount Fee must be paid by the seller.
Conventional: Points can be paid by the buyer, the seller, or split between the two as
stated on the Contract of Sale.
City/County/State Government Sponsored Loans: As published by them.
Do the number of points charged fluctuate?
Yes. If rates on mortgage loans are lower than other investments (such as stocks, bonds,
etc.) then funds will be drawn away from the mortgage market. Also, when there is a
heavy demand upon the money market because of business needs, role requirements, or
other government borrowing, the result is that money for home mortgages becomes
scarce and more expensive. When this occurs, more points can be charged. Points balance
the market. Points are not set by government regulation but by each lender individually.
Is FHA or VA financing unfair to sellers?
No. Homes can sell faster because more buyers can qualify with the lower down payment
requirement and interest rate. Sellers receive all cash for their equity to reinvest in a new
home or other investment. The purpose of these loans is to provide purchasers the
opportunity to buy homes with minimal cash investment thus providing a bigger marker
for sellers.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

What is APR?
The APR reflects the cost of a mortgage loan as a
yearly rate. This rate may be higher than the rate
stated in the mortgage or deed of trust note
because the APR includes, in addition to interest,
points, fees, and other credit costs.
Within 3 days of receiving a loan application, the lender is required to give or
mail to the borrower a Loan Estimate that will disclose the “annual percentage
rate” (APR).
The annual percentage rate (APR) can be a valuable tool to help shop for a
mortgage, but only when you know how to use it.
An APR measures the total cost of the loan (including interest, points, and fees)
and compares this cost to the amount borrowed. You could call an APR the
“effective” interest rate because points and fees are also included.
Your lender does not control all costs included in APR. Settlement charges are
included also.
For more detailed information regarding Truth-in-Lending, contact the Division
of Consumer and Community Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551 or go to www.federalreserve.gov
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Mortgage Interest
Interest is the fee charged by the lender for borrowing their money. It is charged
at a percentage of the loan amount, called the principal. The interest rate is stated
for a term of a year. Lenders use 360 or 365 days in a year to simplify the
computation. When calculated, the principal amount is multiplied by the interest
rate then by the length of time. An example of interest calculation:
Principal (Loan Balance): $100,000
Interest Rate: 6%
Period: 6 months
Calculation:
$100,000 x 0.06 x (6/12) - $3,000
Interest on a loan is paid in arrears, meaning: for the previous month. An example
would be: Your payment due on September 1st is for the month of August.
When closing your loan, you must bring in, as a part of your closing cost, the
interest for the remaining days left in the month. You will not make a payment
on the 1st day of the next month.*
*(unless it is an interest credit back, then it is possible)
Because interest is paid in arrears, your first mortgage payment will be after the
next full month.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Escrow
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

What is Escrow?
An escrow is created when money and/or documents are deposited by two or
more persons with a third party which are to be delivered upon the happening of
certain conditions. The third party is known as the escrow agent or escrow
holder.
The authority given to an escrow holder is strictly limited by instructions
provided by the parties involved. Consequently, an escrow holder acts on mutual
instructions deposited into escrow and DOES NOT represent any party. They are
neutral to the transaction. The escrow officer is authorized by instructions to
allocate funds for items during the escrow period, such as real estate
commissions, title insurance, liens, recording fees, and other costs. Instructions
also specify the method of collecting funds, proration issues, time limitations,
and all the terms of the transaction. The escrow process protects all parties
involved by retaining money and documents until the mutual instructions are
met.
The statutory definition of escrow is found in Section 17003 of the California
Financial Code and reads as follows:
‘Escrow’ means any transaction wherin one person for the
purposed of effecting the sale, transfer, encumbering, or
leasing of real or personal property to another person,
delivers any written instrument, money, evidence of title
to real or personal property, or other thing of value to a
third person to be held by such third person until the
happening of a specified event or the performance or a
prescribed condition, when it is then to be delivered by
such third person to a grantee, grantor, promisee,
promisor, obligee, obligor, bailee, bailor, or any agent or
employee of any of the later.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Steps for a Successful Escrow
1. When your agent open escrow, ask for your Escrow Reference number to use for all
future communications.
2. Read and understand the Preliminary Title Report with your agent.
3. COMMUNICATE with your escrow officer. They must be instructed when to order
payoffs, releases, etc. It is important that we all keep them informed throughout the
process.
4. Remember, with rare exceptions, escrow acts only on MUTUAL instructions from all
parties.
5. It is important to understand the fiscal tax year, debits, credits, prepaid interest,
impounds, and due delinquent dates. Be sure to review your Loan Estimate and Closing
Disclosure with your realtor and lender.
6. Check each signature for accuracy as to middle initials and spelling. Sign exactly as
shown on the document. Make sure all required documents are signed and notarized
when applicable.
7. Ensure you have identification that matches to the name on your loan and escrow
documents.
8. Double check all papers and documents before returning them to your escrow officer
to verify the following:
a. They are signed properly. Any and all changes are initialed.
b. The vesting shows as how you want the title to read.
c. Addresses are supplied for all future correspondence.
d. Any changes in phone numbers are provided.
e. Any and all addendums are executed.
f. All funds held by the broker are deposited into escrow.
g. The notary completes the acknowledgment, signs it, and places the seal
clearly.
h. You have determined how to transmit funds to closing.
i. Closing funds are sent by certified/cashiers check or wire.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

The Escrow Process—Day by Day
Based on a standard 30-day escrow
Acceptance (Day 1) : Congratulations on your accepted offer, now it’s time to hustle!
What your loan officer will do:
Contact you to confirm loan terms, structure, and down payment amount.
Update your information in the system. This may mean new paystubs & bank
statements.
Go over expectations, time frames, your obligations, and commitments.
What your realtor will do:
Open escrow, and request your earnest money deposit check.
Schedule your initial inspection of the property.
Ensure the carbon monoxide & smoke detectors, as well as the water heater are
installed in the property prior to appraisal inspection (CA Law Requirement).
What you should do:
Be responsive to requests for information. Let us know any concerns you may
have.
Keep us informed of any travel or scheduling arrangements.
Start shopping for homeowners insurance!
Loan Set Up
Your loan is disclosed based on fees received from the escrow officer and your
loan structure.
Your appraisal needs to be ordered. The report usually takes 7 business days to
complete, and is your only up-front loan fee.
Loan Processing (2 days)
Your loan cannot be processed without your signed disclosures.
The Loan Processor reviews the file received from you loan officer, and
addresses any questions or concerns.
Conditional Approval (3-7 days)
This is the Underwriter’s initial review and approval of your file.
The goal is to have this long before you are required to release contingencies so
any loose ends may be tied up prior to you releasing your contingencies.
By this time, you may have to prove to the seller(s) your availability of down
payment & closing costs.

The The Escrow Escrow Process—Day Process—ctd. by Day
Based on a standard 30-day escrow
Final Approval (by the 17th day)
Underwriter reviews any final documents that have been submitted to complete
the file & sign off for docs, including your appraisal, property insurance, and
conditions of the file.
This is when you release your contingencies and confirm you are moving ahead
with the purchase.
Resubmission to Underwriting (by the 20th day)
Signing Loan Documents (by the 25th day)
Loan documents are generated by our closing department & sent to the escrow
office.
Ideally, you sign with your escrow officer. This saves time and money.
Be sure to bring your identification documents—they need to match your loan
documents.
Loan Funding (by the 29th day)
You will need to send final funds to escrow and provide proof of the final funds
into escrow to your lender. Make sure it is from an account we’ve reviewed!
Sometimes, you may need to sign, or correct, documents that were missed at
escrow signing.
Closing (30th day)
Recording is most often the day after funding. Keys are then given to you at the
time specified in your contract.
Your first payment will be due the subsequent month after closing
(i.e. closing in December means a February date).
FYI—Post Closing Audits are common these days. File is reviewed a last time to
make sure its in compliance Additional information may be requested...don’t be
alarmed!
Congratulations on a successful closing!
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Life of an Escrow
Prepare Escrow
Instructions &
Pertinent Docs
Obtain Signatures
Order Title Search
Receive & Review
Preliminary Report
Request Beneficiary
Statement
Process Financing
Request/Prepare New
Loan Application
Receive Demands,
Request Clarification
of Other Liens, and
Review Taxes on
Report
Receive Demands and
Enter into File
Request Beneficiary Statement and
Enter into File. Review Terms of
Transfer and Current Payment Status
Obtain Loan Approval
and Determine that
Terms are Correct
Request Loan
Documents
Review file to determine that all conditions have been met and that all
documents are correct and available for signature.
Forward recordable
documents to title
officer for review
Upon approval, forward
original documents to
the county recorder
Figure file and request signatures
on all remaining documents
Obtain funds from
buyers
Request loan funds
Fund the escrow
Order recording
Close File: Prepare
statements &
disburse funds
Complete closing. Forward all final
documents to all interested parties
(buyer, seller, lender)
Return original loan
documents to lender

Escrow Services
What is Escrow?
Escrow is a transaction where one person delivers something of value to a neutral third
party (“Escrow Holder”), to be held until the happening of a specified event or condition,
upon which it is then delivered by the Escrow Holder to another. Both parties to a real
estate transaction entrust legal documents and various funds to the escrow holder,
which transfers the papers and funds upon the closing of escrow. Because the Escrow
Holder is a neutral third party, both buyer and seller are assured that all mutually
agreed to terms are met before the transaction is completed.
Convenience
Using the escrow holder as a common depository, the buyer and seller can proceed
simultaneously in providing funds, deeds, inspection reports, insurance information,
and other required documents. Both parties give mutually agreed upon written
nstructions, the requirements of which must be met before the transaction is complete,
to an experienced escrow officer. Lenders also specify their conditions for completing
the loan process. Provided that the instructions are clear and mutually consistent, the
escrow officer, as a limited agent for all parties, saves time and helps streamline the
closing process.
Protection
The authority given to an escrow holder is strictly limited by mutual instructions
provided by the buyer and seller. The escrow officer is authorized by instructions to
allocate funds for items during the escrow period, such as real estate commissions, title
insurance, liens, recording fees, and other closing costs. Instructions also specify the
method of collecting funds, proration of insurance and taxes, and time limitations on
settling the transaction. The escrow process protects all parties involved by retaining
money and documents until mutual instructions are met.
Confidentiality is another important aspect of escrow. To effectively handle a
transaction, your escrow officer must be instructed as to the required terms necessary
to close. The officer will discuss escrow matters only with the parties directly involved,
specifically the buyer, seller, lender, and real estate agent. No one else has access to this
information, except through proper legal procedures. The escrow officer retains
impartiality and confidentiality concerning the real estate process.
Closing Escrow
Upon closing, the escrow holder causes the required documents to be recorded and
disburses funds according to the instructions given to the escrow officer. Escrow fees
are included in these costs, and are based on the sales prices of the property, the loan
amount, and services required.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Responsibilities of Each Party
Buyer:
Deposits funds to pay the purchase price, and funds for the property and closing
costs
Provides deed of trust or mortgages needed to secure the loan
Provides, if required documents such as inspection reports, insurance policies, and
lien information to verify compliance to the instructions
Seller:
Executes the grant deed to the buyer with the escrow holder
Provides evidence to meet the buyer’s condition of sale, such as proof of repair work,
inspections, and legal ability to sell the property.
Provides other documents, such as disclosures, mortgage information, insurance
policies, and warranties, as requested or applicable
Lender:
Deposits loan funds, lender instructions, and other loan documents with the escrow
holder
The Escrow Holder:
Serves as a central depository for funds and documents
Obtains a title insurance policy, when required
Fulfills the lender’s requirements, if applicable
Secures approval from the parties on requested documents
Prorates insurance, taxes, and rents, as instructed
Fulfills buyer and seller instructions
Allocates funds for closing costs, and verifies that required funds from each party
are deposited into escrow
Once all conditions are met, the escrow holder causes the necessary documents to be
recorded. Executed loan documents are forwarded to the lender
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Common Escrow Questions
What Is Escrow?
An escrow is money or property put into the custody of a third party until specified
conditions are met.
How Do I Open Escrow?
As soon as you execute your purchase agreement, your real estate agent will deliver a
copy of the purchase agreement and your initial down payment check (if in their
possession) to the Escrow Officer to open escrow. Your escrow officer will then send
you escrow instructions.
How Will I Know Where My Money Has Gone?
Written evidence of your deposit is included in your copy of the purchase agreement.
Your funds will then be deposited in your separate escrow account.
What Do I Do Next?
You will want to speak with your mortgage lender. You will be required to finalize your
loan application which will require personal and financial information.
What Happens After I Submit The Loan Application?
The lender will begin the qualification process including ordering/reviewing credit
report, verifying items submitted on the application, and ordering/reviewing appraisal
of the value of the property.
Assuming The Loan Is Approved, What Next?
Your escrow officer will make an appointment for you to sign your final loan papers. At
this time, the escrow officer will also tell you the amount of money you will need to buy
your new home. Your loan funds will be sent directly to the escrow by the lender.
What Are Escrow Instructions?
Escrow instructions define all the conditions that must occur before the transaction can
be finalized. Your escrow instructions represent your written statement to the escrow
holder protecting your interests. They also authorize the escrow officer to order title
insurance which provides ownership protection for your new home.
When Do I Sign Escrow Instructions?
Your escrow officer will send escrow instructions to you for signing along with other
forms such as: vesting instructions, statement of confidential information, and change
of ownership form. Be sure to return your signed instructions and forms as soon as
possible.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Common Escrow Questions, ctd.
What Do I Need To Do Before My Appointment To Sign Loan Papers?
Payment: A cashier’s check made payable to the escrow company in the amount
indicated to you by escrow. You will most likely also be given the option to wire
your closing funds to the Escrow company.
Lender’s Requirements: Make sure you are aware of your lender’s requirements and
that you have satisfied those requirements before you come to the escrow company
to sign your loan documents.
Hazard Insurance: If you are purchasing a single family home, or detached home, be
sure to order your hazard insurance. Then call your escrow agent with the insurance
agent’s name and phone number. You must have secured hazard insurance before
the lender will send documents to the escrow company.
Identification: Please bring a driver’s license or passport (photo ID) for each person
who will be on the title with you to the escrow company. This is needed so that your
identity can be verified by a notary public. It is a necessary step for your protection.
What Is The Next Step After I’ve Completed My Sign-Off?
After you have signed all the instructions and documents, the escrow officer will return
them to the lender for review. This usually occurs within a few days and upon
completion, the lender is ready to fund the loan and advise escrow.
What Is An “Escrow Closing”?
It is the culmination of the transaction. It signifies legal transfer of title from the seller
to you. Usually the Grant Deed and Deed of Trust are recorded within one working day
of the escrow’s receipt of loan funds. This signifies the close of escrow.
When Will I Receive The Deed?
The original deed to your home will be mailed directly to you at your new home by the
County Recorder’s Office. This usually takes several weeks, sometimes longer.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Insurance:
Title &
Homeowners
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

What is Title Insurance?
What Is Title Insurance?
A title insurance policy protects a real estate owner or lender against any loss or damage
they might experience because of liens, encumbrances, or defects in the title to said
property, or the incorrectness of the related search.
How Does Title Insurance Differ From Casualty Insurance?
Casualty Insurers (car, life, health, etc.) assume risk for future events, collecting monthly
or annual premiums. A title policy insures the past of the real property and the people
who owned it, for a one-time premium paid at the close of escrow.
What Does Title Insurance Cover?
Title insurance protects against claims from various defects such as another person
claiming an ownership interest, improperly recorded, fraud, forgery, liens, encroachments,
easements, and other items that are specified in the actual policy.
Who Needs It?
Purchasers and lenders need title insurance to know the property they are involved with
is insured against various possible title defects. Whether it is a sale, refinance, or construction
loan, the seller, buyer, and lender all benefit.
How Is A Title Policy Created?
After the escrow officer or lender opens the title order, a search of public records will
begin, including the County Recorder, Federal and State Agencies, and County and City
Offices. A preliminary report is issued to the customer for review and approval. All closing
documents are recorded upon escrow’s instruction. When recording has been confirmed,
demands are paid, funds are disbursed, and the actual title policy is typed and
sent to the insured.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Reasons for Title Insurance
1. Title Insurance will protect you against a loss on your home or land due to a title
defect.
2. A deed or mortgage in the chain of title may be a forgery.
3. Claims constantly arise due to marital status and validity of divorces.
4. A deed or mortgage may have been made by an incompetent or under aged person.
5. A deed or mortgage made under expired power of attorney may be void.
6. A deed or mortgage may have been made by a person with the same name as the
owner.
7. A child born after the execution of a will may have interest in the property.
8. Title transferred by an heir may be subject to a federal estate tax lien.
9. An heir or other person presumed dead may appear and recover the property or an
interest.
10. A judgment regarding the title may be voidable because of some defect in the proceeding.
11. By insuring the title, you can eliminate delays when passing your title on to someone
else.
12. Title Insurance reimburses you for the amount of your covered loss (only after a
claim has been researched and validated by the underwriter of the title company).
13. A deed or mortgage may be voidable if signed while the guarantor was in bankruptcy.
14. Claims has risen dramatically over the last 30 years.
15. There may be a defect in the recording of a document upon which your title is
dependent.
16. Title Insurance covers attorney fees and court costs (with approved claims or
judgments in client’s favor).
17. A deed or mortgage may have been procured by fraud or duress.
18. A title policy is paid in full by the first premium for as long as you own the property.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

The Title Process
Escrow officer opens title order
with title unit
Customer service verifies legal
and vesting, if needed
Title search started
Computerized
Searcher
Required
Engineering
Tax/Bond
Property Chains
Examines
Documents
Department
Searches
General Index
Chain & General
Are
Prepares
Are
Sellers/Buyers
Index
Printed
Plat Maps
Prepared
Examiner examines complete search package and generates preliminary title report
(Prelim)
Prelim is delivered to Escrow and Lender
New documents/demands submitted to title unit
Escrow authorizes recording
Documents are recorded, demands are paid, and funds are disbursed
Title policies are typed, reviewed, finalized, and delivered to you and lender.

Homeowners Insurance
Condo
You may need an additional policy to close this transaction as your Homeowners
Association Insurance policy may not include the upgraded replacement cost of
interior contents. You will be asked to secure this policy with your insurance agent
prior to drawing your loan documents. This is also called “H06” or “walls-in coverage.”
House
A one year premium is required at closing. You will select your own insurance agent
and give him our name and phone number, as well as that of your escrow officer.
Your agent will send the bill to us and escrow and this will be added to the amount
of money you will need to bring in at the close.
1. Impounds
To open an impound account, you will be asked to bring in one
years premium plus 2 months up front. You will give this to escrow
as part of your closing costs.
The lender will open an escrow and most lenders show the account
balance on your monthly statement. From your first payment, 1/12
of your annual premium will be included with your monthly
payment.
2. No Impounds
You will annually receive an invoice and pay it yourself.
NOTE:
Proof of adequate coverage is required prior to generating loan approval.
Don’t let your coverage lapse! As having hazard insurance is a
requirement of your loan, if your coverage lapses or expires, you
will have a policy force placed on you, which is very expensive. It is
not a long term solution, so be sure to pay attention if any insurance
notices are received from your carrier.
Let us know if you need any assistance in placing insurance.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Tax Info
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

Property taxes are due twice a year:
Property Taxes
October 10th—Late on December 10th
February 10th — Late on April 10th
They are usually figured at 1.25% of the purchase price (may vary according to
city) for qualification purposes. The true amount will be 1% of assessed value,
plus bonds, and fixed rate charges, which are listed down on your bill.
Property taxes can be paid two ways:
1. Impounds: If your loan has a Loan To Value (LTV) of 90% or higher and is
one loan, or if you have a government loan, you have to include your
taxes in your monthly payment. If you do a 1st and 2nd combination, or
have a LTV less than 90%, impounds are usually optional.
To open an impound account, you will be asked to bring in 4-7 months of
taxes to escrow as part of your closing costs.
The lender will open an escrow account and most lenders show the
account balance on your monthly statement. From your first payment,
1/12th of your tax bill will be included with your monthly payment.
The lender will pay your tax bill; you should also get a copy of the bill
from the county. Always check your January and May statements to
make sure the money was deducted from your account. If it was not,
contact your lender immediately.
Supplemental Tax Bills
For the first six months (sometimes longer), your tax bill will be based on
the prior owner’s assessed value. The new bill will be basd on the current
purchase price. There will need to be an adjustment for the difference in
the two assessments, which is called a tax supplement. When the county
updates their records, you will receive one bill with the new assessment.
The lender will not automatically pay supplemental bills. You can request
them to pay the supplemental bill because they have your impounds.
2. No Impounds: You will be responsible to pay your taxes on time. You will
receive your tax bill in October. The first installment is due no later than
December 10th, and the second installment is due no later that the
following April.

What is Proposition 13?
Those who have owned their homes for a while easily see the value of Proposition
13. Did you know that before Proposition 13, the average property tax rate in
California was three percent of assessed value and there was no limit on annual
increases. Previously, if a house on your block sold for much more than you paid
for your house, you shuddered in fear when you received your next property tax bill.
Chance are, your new taxes would be based on what your new neighbor was willing
to pay for his home. Things got so bad in the late 1970s, people were actually losing
their homes because of uncontrolled tax increases.
The base assessment rate is now only one percent for all California property and
annual tax increases are limited to no more than two percent. When property is sold,
it is reassessed at market value, but the rate remains at one percent and the new
owner is then protected by the two percent cap on annual increases.
What good is Proposition 13 to me?
Every owner of property in the state is covered. Proposition 13 is Article XIII A of the
California Constitution.
Why am I paying more in property taxes than my neighbors with similar houses?
Under Proposition 13, you determine how much your property taxes will be. Your taxes
are not based on your neighbors’, but are based on the price you voluntarily agreed to
pay for your new home.
We all receive the same services, but I pay more. How can this be fair?
In California, similar to other states, services have never been related to the amount you
pay in property taxes. If services were tied to what you paid, you might see four fire
trucks assigned to a costly home while only one would protect a less expensive residence.
In fact, property taxes are not allocated for specific services. They go into the
general fund along with other taxes and it is local public officials who determine how
the money will be spent.
It still seems like I am paying too much!
We all feel that way, but thanks to Proposition 13, the tax rate for all Californians is only
a third of what it was. If you think things are bad now, multiply your tax bill by three
and see what you get.
I still don’t see what good Proposition 13 is to me.
Besides your lower tax rate, it makes your taxes deductible. Over the years, if houses sell
in the neighborhood for more than what you paid, you will be protected. Under
Proposition 13, your property taxes cannot go up more than two percent a year.

What is a Supplemental Tax Assessment?
Chances are you will have a Supplemental Tax Assessment after you purchase
your home.
State law requires the Assessor’s Office to reappraise property immediately upon
change of ownership or completion of new construction. The Assessor’s Office
must issue a supplemental assessment which reflects the difference between the
prior assessed value and the new assessment. This value is then prorated based
on the number of month remaining in the fiscal year, ending June 30th.
For example, if property is purchased on September 15th with a market value of
$150,00, and it has a prior assessed value of $50,000, this will result in a supplemental
assessment for the difference ($100,000) prorated for the remaining
months in the fiscal year (9months from October through the following June).
$150,000
- $50,000
$100,000
x 9.5
$75,000
x 1%
$750
New Purchase Price/Market Value
Prior Assessed/Taxable Value
Supplemental Assessment
Remaining Months in Fiscal/Tax Year
Supplemental Assessment
Tax Rate
Supplemental Tax Bill
This supplemental tax bill is in addition to the regular tax bill which is based on
the assessed value as of March 1st of each year. If a second sale or transfer of the
property occurs during the same fiscal tax year, but before the mailing of the
first Supplemental Tax Bill, the taxes will be prorated between May 31st, a second
Supplemental Assessment will be required for the next fiscal year. If you have
further questions regarding supplemental taxes, you can reach your local assessors
office at the below phone numbers:
Santa Barbara County Assessor: (805) 568-2550
Ventura County Assessor: (805) 654-2181
Los Angeles County Assessor: (213) 974-3211

Tax Write-Off
In order to encourage home ownership, the government allows individuals to
deduct home ownership-related expenses from the taxable income.
The expenses are mortgage interest, real estate taxes, and loan origination fee
(also known as points). Income tax rates are graduated, meaning the rates are
higher as your incomes levels pass certain limits.
In order to calculate your tax benefit, you multiply the marginal tax rate, or
the highest tax rate you paid on your federal and state income tax returns. For
example, if a borrower’s state and federal marginal tax rates are 0.08 and 0.28,
the total is 0.36. To calculate the tax benefit, add the annual interest and real
estate taxes together, then multiply by the marginal tax rate. The product is
your annual tax benefit.
Depending on your loan amount, a first time buyer can usually increase your
withholding exemptions on your W-4 by at least 4 and still get a tax refund.
This should be taken into account when considering the mortgage you can
afford and your tax planning.
To find out what your true tax benefits are, consult a tax professional—
everybody’s situation is unique.
Austin Lampson, NMLS #517060 | On Q Financial | austin@austinlampson.com | 805.335.8200

Glossary of
Terms
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

Real Estate Definitions & Abbreviations
Abandonment of Homestead
ADB HOMESTEAD
Document recorded to terminate a
homestead.
Abstract of Judgment
ABST JDGT
A summary of the essential provisions
of a money judgment. When recorded, it
creates a general lien on real property of
the judgment debtor in the county in
which the abstract is recorded.
Assignment of Rents
ASSIGNMENT RENTS
A document which gives the beneficiary
the right to collect rents of the secured
property in the event of a default.
Certificate of a Tax Lien
CTF TAX LIEN
A lien for nonpayment of property taxes.
Attaches only to the property upon
which the taxes are unpaid.
Covenants, Conditions, and Restrictions
(CC&R’s) RESTRICTIONS
A term used in some areas to describe
the restrictive limitations, which may be
places on property. In other areas, they
are simply called restrictions.
Close of Escrow
(COE)
Means essentially that a real estate
transaction has been completed and that
the sale is final.
Declaration of Homestead
HOMESTEAD
Document recorded by a homeowner to
protect his home from forced sale in
satisfaction of certain types of creditors
claims.
Decree of Distribution
DEC DISTRIBUTION
The final determination of the rights of
heirs to receive the property of an
estate.
Deed
Written instrument which, when
properly executed and delivered,
transfers title to real estate.
Deed of Reconveyance
RECON—RECONVEYANCE
An instrument used to transfer title
from a trustee to the equitable owner
of real estate, when title is held as
collateral security for a debt. Most
commonly used upon payment in full
of a trust deed.
Deed of Trust
See Trust Deed
Easement
The granting of a right which one has
in the land of another. It is either for
the benefit of land, such as right to
cross, or “in gross,” such as public
utility easement.
Federal Tax Lien
A lien attaching to property for non
payment of a federal tax (estate,
income, etc.)
Fictitious Deed of Trust
FICTITIOUS TR DD
A deed of trust recorded by a trustee
which discloses all the terms of the
trust deed but does not relate to a
specific transaction and is used for
reference only.
Grant Deed
Form of deed, common in California,
that contains implied warranties to the
effect that the grantor has not
previously conveyed or encumbered
the property.
Judgment
The final determination of a court on a
matter presented to it. Money
judgments, when recorded, become a
lien on real property of the defendant.

Real Estate Definitions & Abbreviations, ctd.
Lien
A charge upon property for the payment
of debt or obligation.
Lis Pendens
A recorded notice that litigation
(a lawsuit) is pending, which may affect
the title of the real estate involved.
Mechanic’s Lien
Statutory lien in favor of laborers and
material suppliers who have performed
work or furnished materials or supplies
to a work of improvement. If not paid,
they have the right to record a lien
within a prescribed period of time.
Notice of Completion
Notice recorded under the California
mechanic’s lien law within ten days after
completion of a structure; it shortens
the time to file a mechanic’s lien.
Notice of Default
DEFAULT—NOD
Recorded notice that a default has
occurred under a deed of trust. It is the
first step in non-judicial foreclosure of a
deed of trust.
Notice of Rescission
RESCISSION
A recorded notice to rescind a notice of
default of a mortgage or deed of trust.
Notice of Trustee Sale
NT TRUSTEE SALE
Foreclosure sale conducted by the
trustee under a deed of trust after a
default occurs.
Power of Attorney
(POA) Instrument used to appoint an
attorney-in-fact
Quitclaim Deed
A deed used to transfer any interest in
real property that the grantor may
have. It contains no warranties of any
kind.
Release
An instrument releasing property from
the lien of the mortgage, judgment,
etc. When a trust deed is used, the
instrument is called a reconveyance. In
some areas, a “discharge” is used
instead of a release.
Request for Notice of Default
REQUEST NOD
A recorded notice made by the
beneficiary of a trust deed that he be
notified in the event that foreclosure
proceedings are commenced by
another party.
State Tax Lien
A lien attaching to property for
nonpayment of state income tax.
Subordination Agreement
SUBDN AGMT
Agreement under which a prior or
superior lien is made inferior or
subject to an otherwise junior lien.
Substitution of Trustee
SUBSTN TRUSTEE
Written instrument by which title to
land is transferred to a trustee as
security for a debt or other obligation
Trustee’s Deed
Deed given by the trustee when
property is sold under the power of
sale in a trust deed
Uniform Commercial Code Financing Stmnt.
UCC FINANCING STMT
In California, evidence of a personal
property security agreement that may
be filed under prescribed conditions

Loan Definitions & Abbreviations
Adjustable Rate Mortgage
ARM
Rate is fixed for a period of time
(typically 3-10 years) then adjustable
Annual Percentage Rate
APR
The cost of the loan in percentage terms
taking into account estimated charges
over the life of the loan (typically higher
than the Note Rate)
Buy & Bail
When you currently own your primary
residence, and are planning on
purchasing a new one
Closing Disclosure
Replaces HUD1. Final closing document
generated by lender and settlement
agent. Outlines transaction.
Combined Loan-to-Value Ratio
CLTV
The ratio of all loans to the property
value and sales price
Co-Borrower
Additional borrowers on the loan who
may or may not occupy the property
Down Payment
Buyer’s contribution to purchase
property (does not include closing costs.
Minimum 3%
Debt-to-Income Ratio
DTI
The total of payments and obligations to
income on a monthly basis
Escrow Officer
Neutral third party individual to
transaction who coordinates
documentation and funds
Escrow Period
Time frame set in your purchase
contract to close the transaction
Fixed Rate
Rate and payments are fixed for the
entire term of the loan
Impounds
Payment of taxes and insurance
monthly with the mortgage payment.
This is not required on all loans
Loan Estimate
(LE)
Upfront disclosure outlines, estimated
fees, costs, and structure of transact
tion.
Loan Officer
Agent representing the buyer as
borrower for loan programs and funds
Loan-to-Value Ratio
LTV
The ratio of the loan amount to the
property value and sales price
Monthly Mortgage Insurance
MMI or MIP
Charged by FHA (.45% - 1.5%
depending on your parameters)
PITIA
Principal + Interest + Taxes +
Insurance + Association Dues
Private Mortgage Insurance
PMI
Required with less than 20% down
payment on conventional loans
Points
1 point = 1% of loan amount. Typically
charged to reduce your interest rate
Pre-Approval
Buyer completed a full application and
provides supporting documentation

Loan Definitions & Abbreviations, ctd.
Pro-Rated Interest
Since interest is paid in arrears, at
closing you will “pre-pay” interest from
the funding date to the end of the
month
Pro-Rated Taxes
Payment of concurrently assessed taxes
for your portion of ownership of the
property
Realtor
Agent representing the buyer or seller in
negotiations, inspections, and general
terms of sale
Reserves
Funds left over after closing. Typically,
guidelines want to see two months of
PITIA in reserves
Supplemental Taxes
If the sales price of the property is more
than the assessed value, expect a bill for
the difference after closing
Up Front Mortgage Insurance Premium
UMIP
Charged by FHA (1.75% for all loans)
Usable Credit Score
The lowest of the middle score(s) of all
borrowers to be used for terms and
qualifications
Vesting
How one holds title to property

Utilities
Cable Television
Cox Communications 805-683-6651
Comcast Advertising Sales 805-688-3210
(Services Santa Ynez Area)
Direct TV 800-490-4388
Electricity
Southern California Edison 800-655-4555
www.sce.com
Gas
Southern California Gas Co. 800-427-2200
www.socalgas.com
Pacific Gas & Electric Company 800-743-3000
(Services San Luis Obispo County)
Sanitation Service
Browning-Ferris Industries (B.F.I) 805-965-5248
Carpinteria Sanitary District 805-684-7214
Harrison Industries 800-418-7274
Health Sanitation Company 805-922-2121
(Services Santa Ynez Area)
Marborg Industries 805-963-1852
Suburban Rubbish Company 805-733-2659
(Services Lompoc Area)
Telephone Service
Verizon Residential 800-483-1000
www.verizon.net Business 800-483-2000
New Service: Residential 800-483-4000
Business 800-483-5000
AT&T Wireless 800-462-4463
www.attws.com
Water
Carpinteria Valley Water District 805-684-2816
Goleta Water District 805-964-6761
(Goleta, Isla Vista, SB North)
La Cumbre Mutual Water Co. 805-967-2376
(Hope Ranch & Annex)
Montecito Water District 805-969-2271
(Montecito & Summerland)
Santa Barbara City Water Dept. 805-564-5343
Santa Ynez Conservation District 805-688-6015
Solvang Municipal Center 805-688-5575
Public Service
MTD (Local Bus Routes) 805-965-5248
www.sbmtd.gov
Greyhound 800-231-2222
www.greyhound.com
Amtrak 800-872-7245
www.amtrak.com
Santa Barbara Municipal Airport 805-683-4011
Fire Stations
Santa Barbara County Fire St. 805-681-5515
(Foothill Road)
Santa Barbara Fire Dept 805-897-3164
(La Venta Drive)
Santa Barbara Fire Dept 805-965-5254
(Carrillo Street)

Utilities, ctd.
City of Santa Barbara 805-963-0611
www.ci.santa-barbara.ca.us
County of Santa Barbara 805-681-4200
www.countyofsb.org
City of Carpinteria 805-684-5405
www.carpinteria.ca.us
SB Board of Supervisors 805-568-2190
Santa Barbara Police Dept. 805-897-2300
California Highway Patrol 805-967-1234
Postal Service 800-275-8777
www.usps.gov
SB County Voter Registration 805-568-2200
SB County Tax Assessor 805-568-2920
Santa Barbara News Press 805-966-717
www.newspress.com
City of Santa Barbara
(Quick Reference Numbers)
Abandoned Vehicles 805-897-2413
(Public Property)
ABOP 805-560-7505
(Antifreeze, Batteries, Oil, Paint)
Airport Noise Complaint Hotline 805-967-1900
Animal Control 805-963-1513
Code Enforcement Hotline 805-897-2676
Creeks 805-897-2658
Dumping/Water Quality 805-897-2688
Fire Dept. (24-hour) 805-965-5254
Graffiti Hotline 805-897-2513
Hazardous Waste 805-564-5371
Information - City Hall 805-963-0611
Mosquito Abatement 805-564-5371
Noise Abatement 805-897-2410
Park Ranger 805-897-1941
Police Department
24 Hour Non-Emergency 805-897-2300
24 Hour Dispatch 805-897-2410
Tip Line (Anonymous) 805-569-2677
Pothole & Sidewalk Hotline 805-897-2630
RADON Information 800-745-7236
Sand Bags 805-564-5411
Sewer Problems (Water/Streets) 805-564-5413
Shopping Cart Hotline 800-252-4613
Street Lights (24 Hour Record.) 805-564-5416
Street Sweeping 805-897-2541
Traffic Signals (Public Works) 805-564-5583
Trash/Solid Waste Complaints 805-897-2618
Tree Problems 805-564-5434
Vector Control (Rodents) 805-564-5371
Water Problems
Broken Mains 805-564-5413
Conservation 805-564-5460
Zoning Enforcement 805-897-2676
*same for Ventura, Goleta, Carpinteria

Worksheets
Ausn Lampson, NMLS #517060
1332 Anacapa St. Ste. 110 ¨ Santa Barbara, CA 93101
O: 805.335.8200 ausn@ausnlampson.com
www.ausnlampson.com

Notes:

Moving Checklist
Two Months Prior to Moving Day:
Six Weeks Prior to Moving Day:
Four Weeks Prior to Moving Day:
Three Weeks Prior to Moving Day:

Moving Checklist, ctd.
Two Weeks Prior to Moving Day:
One Day Prior to Moving Day:
Moving Day:
Delivery Day:

Pre-Closing Checklist
During your final walk-through of the home prior to closing, you have an opportunity to view
the home to verify that the home has been maintained in substantially the same condition as
when you made the offer. In addition, you must check to ensure that any agreed-upon repairs
have been made. Observe areas where large furnishings, carpets, and/or equipment were
covering walls or floors. Operate equipment considered to be part of the purchase and agreed
to be properly operating at the time of closing. You may want to bring a flashlight.

Security Checklist

Borrower Estimated Closing Costs
Interest Rate: Term Of Loan: ___________________
Items Payable in Connection With Loan
$___________________ Loan Origination Fee
$___________________ Loan Discount _____________%
$___________________ Appraisal
$___________________ Credit Report
$___________________
$___________________
Items Required By Lender To Be Paid In Advance
$___________________ ______ Days Interest @ $______ / Day
$___________________ Conventional PMI/FHA Up-Front MIP/VA Funding Fee
$___________________ Hazard Insurance Premium
$___________________ Property Taxes
$___________________ HOA Dues
$___________________
Reserves Deposited With Lender
$___________________ Hazard Insurance ______ Months @ $______/month
$___________________ Mortgage Insurance ______ Months @ $______ /month
$___________________ Taxes ______Months @ $______/month
Title Charges
$___________________ Closing or Escrow Fee
$___________________ Loan Tie in Fee
$___________________ Doc Prep
$___________________ Notary
$___________________ Title Insurance
$___________________ Endorsements
$___________________ Sub Escrow
$___________________ Escrow Pad
Government Recording & transfer Charges
$___________________ Recording Fees
$___________________ City/County Tax/Stamps
$___________________ State Tax/Stamps
Loan Fees
Prepaid
Title/Escrow

Loan Choice

Loan Choice

Loan Choice

Estimated Tax Write-Off
Worksheet

Loyalty Agreement
Ausn Lampson, NMLS #517060 • Sr. Mortgage Consultant
We are excited to be on your team towards achieving homeownership!
We work hard to help you achieve your mortgage needs, and believe that service & communicaon are the keys to
success. As your advocate, I strive to provide the best lending experience possible, so that you may be confident
during, and aer, your loan closing.
Please let us know ANY feedback or quesons throughout the process.
Your well‐being is our primary focus.
Team Lampson Obligaons:
Act as your fiduciary—keeping your informaon confidenal, and always working in your best interest
Do our best, always, to provide outstanding customer service
Communicate consistently & effecvely throughout the loan process, including Tuesday Update Calls and Friday
Email Reviews
Provide and explain any and all financial opons available to you based on your personal parameters & needs
Respond to all inquires in a mely fashion, while priorizing me sensive maers
Be on top of me frames to stay on track for closing
Relate true and accurate closing costs and funding requirements
We will be there for you throughout the enre purchase process to answer any quesons you might have.
Client Obligaons:
Advise of any changes in your parameters, meframes or needs
Understand that issuing a pre‐approval leer is our commitment to you, and we ask for your commitment to us in
return
Comply with me frames needed to successfully & mely close your transacon
Ask quesons! Never hesitate if clarificaon or help is needed
Be open & honest! Your home and your life are unique to you; let us help by providing soluons and a pathway to
success. The more we know, the beer we can assist.
We commit to excellence in assisng you on your path to homeownership, and ask for cooperaon and honesty in
return. A smooth transacon takes a team; we are honored to be on yours to successfully navigate today’s real estate
market.
NAME & DATE
NAME & DATE
Ausn Lampson, NMLS #517060
Sr. Mortgage Consultant

Thank you for taking the time to read this book!
I am excited to help you on your journey to homeownership. Whether or not this is
your first me, my team and I look forward to taking care of you now ‐and for all
your future home financing needs. We are here every step of the way! If you have
any quesons, please reach out at any me.
Even aer your loan closes, we will be here to assist with any quesons or
opportunies as they arise. We know you have choices, and it is an honor to serve.
The highest compliment we can receive is for you to refer us to your friends &
family. We want to earn the right to be your lender for life!
From my team, and my family, to yours ‐ we look forward to helping you find your
way home!