Welcome to the First Home - California Podcast
The Department of Real Estate launched the First Home - California podcast in September 2023, with the
goal of helping consumers get to a place where they know what to expect during the homebuying process,
and to help them make sure they're ready to make informed decisions about what will likely be the biggest
purchase of their life.
Each episode of the podcast will focus on a specific part of the homebuying process.
Please hit "Follow" on your podcast app so you'll never miss an episode. Below you will find a summary
of the episodes, along with a list of the topics covered. We welcome your feedback at:
editor@dre.ca.gov
Please visit our website at:
https://dre.ca.gov/FirstHomeCalifornia
EPISODE #110: Dishonest Dealings
Episode Date: Friday, April 12, 2024
Join us, the California Department of Real Estate, for a true story of real estate fraud and deception, along with
consumer protection tips. In this episode, Dishonest Dealings, we take you through a case full of misrepresentation
and calculated wrongdoings that took place in Southern California across two years. Just when prospective homebuyers
thought their security earnest money deposits were in safe hands and would secure a purchase of a home – they began
to realize something was not right . We sit down with a Department of Real Estate special investigator who will tell
us the story of how one realtor defrauded more than one hundred unsuspecting homebuyers, share insight into the
Department's investigations, and provide tips on how consumers can protect themselves during real estate transactions.
Topics covered include:
- Broker controlled escrows
- Earnest money deposits
- Important tips and reminders about the homebuying process
- How to file a complaint with the California Department of Real Estate
Our Guest for this episode:
- Veronica Kilpatrick, DRE District Manager/Supervising Special Investigator II
- San Diego
Listener Discretion Advised:
This podcast episode includes real examples and some case-specific language of a past real estate enforcement
case involving fraud. To read the full enforcement case file, visit:
https://www2.dre.ca.gov/hearingfiles/H41332LA_200203_P.pdf.
Previous First Home Podcast Episodes:
Episode Date: December 13, 2023
In this episode we talk about how escrow works. When you’ve made a final offer on a home and reached an agreement
with the seller, you start the escrow process in which a neutral third party manages funds and assets, and ensures
all conditions of the sale are met before the property changes hands.
Topics covered include:
- When escrow officially starts
- The mindset a first-time homebuyer should have during escrow
- Who is responsible for identifying an escrow company to use, whether a homebuyer can choose
the escrow company, and who contacts the escrow company to open an account
- What title search and title insurance are
- What kind of contact the homebuyer can expect to have with their lender
- Whether it’s common for sellers pay for a home warranty for the first year
- What happens at document signing
Our Guest:
- Lynn Bishop, Escrow Officer at Placer Title Company
Episode Date: December 13, 2023
In this episode we talk about how home appraisals work. In California, real estate appraisers are regulated by the
Bureau of Real Estate Appraisers (BREA), and today we’re joined by BREA’s Bureau Chief Angela Jemmott.
Topics covered include:
- What an appraisal is, why it’s needed, and who pays for it
- Whether homeowners can choose the appraiser
- What an appraiser does during an appraisal
- What an appraiser is looking for to determine a home’s value
- What it means if a home is appraised for less than paid for
- What a homeowner can do if they disagree with an appraisal
- Whether a homeowner can pay for their own appraisal
- How to get a real estate appraisers license
- The different levels of appraisers and their differences
- Common reasons consumers file complaints with BREA
Our Guest:
- Angela Jemmott, Chief of the Bureau of Real Estate Appraisers
Episode Date: November 29, 2023
In this episode we talk about what's likely the most complex and most important part of the homebuying process.
Topics covered include:
- The legal paperwork you'll need to review and sign before buying a new home.
- The information that needs to be disclosed to you before a sale.
- The mindset a homebuyer should have when approaching disclosure documents.
- The different types of disclosures - such as the Real Estate Transfer Disclosure Statement (TDS),
Mello-Roose Districts, Bond Assessments, Natural Hazard Disclosures.
- The other reports homebuyers will receive - such as the Preliminary Title report and a public report.
- The financing paperwork you'll receive - such as the Loan Estimate and Closing Disclosure.
Our Guest:
- Kevin Burke, Licensed Real Estate Broker and teacher of Real Property Law
Episode Date: November 15, 2023
In this episode we talk about one of the most stressful and exciting parts of the homebuying process, making an offer on a home.
Topics covered include:
- The mindset a first-time homebuyer should have about making an offer
- What's an earnest money deposit, how much should you put down for this type
of deposit, and what are the advantages/disadvantages of putting down more or
less than that amount?
- The advantage of not selling a home before buying a new one
- The types of contingencies are involved in offers
- After successfully bidding on a home, how long it should take to close escrow
- The pluses/minuses of renting back to the seller after you buy a home
- If there are any contingencies a first-home buyer should think about waving
- What the process of making an offer looks like, including timelines the steps should take
- What happens when there are multiple offers to buy a home
- What the terms "best and final" really means
- What the term "escalation clause" means
- Should the first-time homebuyer make bids on multiple properties at the same time
- What's a "love letter" or "offer letter" and why there's risk in sending one
- Tips on how to survive the stress and emotions of making an offer
Our Guest:
- Mike Shenkman, Licensed Real Estate Agent and lecturer at Department of Urban Studies and Planning at U.C. San Diego
Other Resources:
Love Letters / Offer Letters
Episode Date: November 1, 2023
There are a lot of professionals who are going to be involved in your home purchase. But, none is going to be more important to you than
the one we talk about in Episode #105. This episode covers how to find a real estate agent.
Topics covered include:
- The difference between a real estate agent and a realtor
- Typical responsibilities handled by a buyer's real estate agent
- How a buyer's real estate agent gets paid
- The types of real estate licenses in California
- What educational experience a licensed real estate agent must have
- What else does someone need to do before they can get a California real estate license
- How does a homebuyer start their search for a real estate agent
- How important is it for an agent to have knowledge about the specific area where you want to buy a home
- How important is it that an agent does a lot of advertising
- What are the pluses and minuses of working with a large real estate brokerage versus a small real estate brokerage
- What question does an agent wish more first-time homebuyers asked
- What does it mean to you when the your agent and the seller's agent both work for the same broker?
- What happens if your agent also represents the seller
- What types of problems can lead a new homebuyer to filing a complaint with the Department of Real Estate
Guests:
- Chika Sunquist, Department of Real Estate's Assistant Commissioner overseeing Enforcement
- Mike Shenkman, Licensed Real Estate Agent and lecturer at Department of Urban Studies and Planning at U.C. San Diego
Other Resources:
Episode Date: October 18, 2023
Topics covered in this episode include:
- CalHFA Down Payment Assistance Programs
- CalHFA Government Loan Programs
CalHFA FHA Loan Program
The CalHFA FHA Program is an FHA-insured loan featuring a CalHFA 30-year fixed interest rate first mortgage.
CalPLUS FHA Loan Program
The CalPLUS FHA program is an FHA-insured first mortgage with a slightly higher 30-year fixed interest rate
than our standard FHA program and is combined with the CalHFA Zero Interest Program (ZIP) for closing costs.
CalHFA VA Loan Program
The CalHFA VA program is a VA-insured loan featuring a CalHFA fixed interest rate first mortgage. This loan
is a 30-year fixed interest rate first mortgage.
CalHFA USDA Program
The CalHFA USDA Program is a USDA Guaranteed first mortgage loan program, which can be combined with the
MyHome Assistance Program (MyHome). This loan is a 30-year fixed interest rate first mortgage.
- CalHFA Conventional Loan Programs
CalHFA Conventional Loan Program
The CalHFA Conventional program is a first mortgage loan insured through private mortgage insurance
on the conventional market. The interest rate on the CalHFA Conventional is fixed throughout the 30-year term.
CalPLUS Conventional Loan Program
The CalPLUS Conventional program is a conventional first mortgage with a slightly higher 30 year fixed
interest rate than our standard conventional program and is combined with the CalHFA Zero Interest Program
(ZIP) for closing costs.
- Other CalHFA Programs
Section 184 Indian Home Loan Guarantee Program
Members of federally recognized tribes can take advantage of CalHFA financing no matter where they choose
to live in California! Combine with grants, gifts or tribal assistance to maximize your homebuying power.
Limited 203(K) Option
Program that allows homeowner with CalHFA mortgage to roll up to $35,000 in repairs into mortgage payment.
Free Housing Counseling Program
Through CalHFA's NMS Housing Counseling Program, a network of HUD-certified housing counselors across
California provides free, confidential education and connections to resources. By contacting a HUD-approved
housing counseling agency, you will speak with a counselor who is specially trained and certified by the
U.S. Department of Housing and Urban Development to help you assess your financial situation, evaluate
options, and find programs and resources to help keep you on track, or get you back on track.
Guest:
Eric Johnson, California Housing Finance Agency (CalHFA)
Episode Date: October 4, 2023
Topics covered in this episode include:
- Why your down payment is important to you
- Why it's important to your bank
- Why it's okay if you aren't able to put down 20% as a down payment
- What are the rules for using a financial gift from your family to help with your down payment
- What's a good faith deposit and how does that work into your down payment
- A brief look at some of the first-time homebuyer programs available in California, which will be the deep dive we take in the upcoming Episode #104.
- Plus, some tips that might help you in your efforts to save money for your down payment
Our Guest is Mike Shenkman, a Real Estate & Mortgage Expert and lecturer in the Urban Studies and Planning Department at University of California, San Diego.
Episode Date: September 20, 2023
In this episode, we take a deep dive into home mortgages. This includes conventional, FHA and VA mortgages, as well as fixed-rate,
adjustable-rate, and interest-only. We also discuss the difference between interest rate and annual percentage rate, pre-qualified
and pre-approved, what's an amortization school, what's an impound account, how a mortgage buy-down works, and what happens if your
new home is appraised for less than the price you're paying. Plus, an overview of first-time homebuyer programs.
Episode Date: September 6, 2023
There's nothing more important when buying a home than money.
This episode focuses on helping you figure out how much home you can afford, and
how to be comfortable with what you're going to spend for your first home. Our guest
is Mike Shenkman, who has more than 20 years of experience in California's real estate
industry. He's also a lecturer in the Urban Studies and Planning Department at UC San
Diego.
Topics covered in this episode include:
- Definition of a first-time homebuyer and why you can be a first-time homebuyer more than once
- What your mindset should be as a first-time homebuyer
- The two types of homes you can buy
- Must Haves vs. Nice to Haves
- How much down payment should you put on your new home
- Rules for getting gifts of money towards your down payment
- Top 10 other costs of buying a home
- How lenders determine how much money they will loan you
