Buy Your Home

Tips for Buying

Frequently Asked Questions
(And Their Answers)

If you're thinking of buying a home, chances are you have a few questions. (Okay, quite a few questions.) Here's our list of answers to those we hear most. If you're wondering about something you don't see here, please feel free to give us a call or ask your JTS Communities Representative.

What are a Buyers Agent, Sellers Agent, and Dual Agent?

A Buyers Agent represents the buyer and works in the buyer's best interest. A Sellers Agent represents the seller and works in the seller's best interest. A Dual Agent represents both buyer and seller. In this situation, most states require written consent by both buyer and seller.

Do I need a realtor to buy a JTS home?

No, but you can have one if you prefer.

What is Escrow?

You've heard this term, and if you're buying a home, you'll hear it a lot more. Escrow starts when you make a deposit that's held in the escrow account by a third party until the loan closes. This "acceptance of deposit" means that both you and the seller share the goal of closing the transaction. When all the money and the paperwork are deposited with the escrow agent, the documents are signed, and the docs and money are then delivered to the appropriate parties. At that point, escrow is officially closed and you are officially the homeowner.

What is REPC?

A Real Estate Purchase Contract, also called an "offer to purchase" or a "purchase agreement" is a legally binding contract signed by both you and the seller, which sets forth the terms and conditions of the real estate transaction.

What are the advantages of using a JTS approved lender?

We offer substantial money-saving incentives to any JTS homebuyer that uses our approved lender. Our lender is a highly respected expert in the mortgage industry, and has vast experience funding JTS homes, specifically. This ensures the smoothest loan transaction possible – which is good for everyone!

What is a 2/1 Buydown?

If you're a first-time buyer or a young professional whose income will grow over the next few years, a 2/1 Buydown can be a good option because it keeps your payments lower early on. Here's how it works: You provide a 5% down payment. Initial payments are based on an interest rate 2% lower than the current 30-year fixed rate, then the interest rate increases for the next few years, remaining at the final fixed rate for the duration of the loan.

What is an ARM?

An Adjustable Rate Mortgage has an interest rate that changes periodically based on a pre-selected index.

What is PMI?

If you have a down payment of less than 20% of the purchase price, you must pay private mortgage insurance (PMI), which helps the lender cover losses should a buyer default on the mortgage loan.

What do these lender terms mean – VOE, VOD, and P&I?

VOE - Verification of Employment is a document signed by your employer verifying your position, salary, and starting date.

VOD – Verification of Deposits is a document signed by your financial institution that verifies the status and balance of your accounts.

P&I – Principal and Interest is the largest portion of your monthly payment. The Principal is what's due on the actual amount borrowed, and is reduced with each payment. The Interest reflects the fee you're charged for borrowing the money.

What is a Homeowners Association?

Each homeowner within the community is a voting member of the Homeowners Association, which usually develops an annual budget, collects assessments due for the upkeep of common areas, and agrees upon rules and guidelines for living in the community.

What are CC&Rs?

This refers to Covenants, Conditions, and Restrictions that homeowners must comply with. These rules can apply to how common areas are used, or what architectural changes can be made on a home, or even what types of pets a homeowner can have. The homeowners association votes on the CCRs, which are legally enforceable, in order to maintain the value of each property, as well as the community. They also prevent your neighbors from painting their house purple with pink polka dots.

What are Mello-Roos and Assessment Districts?

In California, bonds are issued to fund the vital facilities for some communities. To repay the bonds, homeowners pay assessments, which are added to their annual property tax bill. The rate, including increases and decreases, varies among communities. Also, the assessments may or may not be deductible, depending on whether they're used for maintenance or improvements. Ask your financial advisor to get the scoop on your area.

Can property taxes and Mello-Roos go up?

Property tax increases vary depending on the state and area you live in. In Mello-Roos districts, the charge formula and any newly issued bonds affect annual increases.

What home purchasing fees are tax deductible?

Usually pre-paid interest, pro-rated property taxes, and loan origination fees or points paid can be deducted that year on itemized state and federal tax returns. It's always best, however, to consult with your financial advisor for your individual situation.

What are the advantages of buying a new home over a resale?

There are many. JTS homes meet today's tough building codes, making them safer and more energy-efficient than older construction. Our homes – and our communities – are designed for today's lifestyles, from master suites and great rooms to recreation centers, bike paths, convenient amenities, and a respect for the surrounding natural habitat. Plus, there's something about starting out with sparkling new everything that you just can't get with an older home.

What general steps does it take us to build a home?

• Choose and purchase land.
• Draw up plans and get them approved.
• Prepare site, trench for plumbing, pour foundation, frame walls.
• Frame the roof.
• Install heating, plumbing, and electrical systems.
• Build fireplace(s).
• Finish the roof.
• Do lathing, insulation, and drywall.
• Surface and paint the exterior; paint the interior.
• Install plumbing fixtures and appliances.
• Finish up the final touches: driveway, carpet and flooring.
• Turn on the porch light, open the front door, and welcome you home.

If I'm purchasing a home pre-construction, when can I view the progress?

There are many opportunities to review the building process, from picking the site and initial excavation to various walk-throughs to the final New Home Orientation. Your JTS Communities Representative will contact you to schedule your appointments.

Can I have a home inspector look at my house?

Of course. You'll just need to set up a time with the Site Superintendent.

What is a 4-Way Inspection?

This is the thorough evaluation and report for four major elements of your home construction: framing, electrical, plumbing, and heating.

Why are some options more expensive than buying them retail?

You pay a bit more for a lot more convenience. We take care of all the footwork, coordinating, purchasing, and installation.

Why choose a JTS Communities home over others?

Where do we begin?

Some builders offer great quality. Some offer value. Still others offer stunning architecture. But at JTS Communities, we offer all that – and much more. For 40 years, we've built exceptional homes – and by that we mean exceptional in every aspect: the highest quality construction for the best value, in prime locations with breath-taking architecture, featuring the most intelligent floor plans and the latest breakthroughs in efficiency. And our neighborhoods? You'll find that we don't build developments, we build communities, designed for a quality of life that you won't find just anywhere. The difference is in the smallest details and the greatest vision. The difference is JTS.