1. Be emotionally ready.
For the majority of homeowners, Real Estate is one of the largest purchases we will ever make. Some people are fed up with paying rent or some people need the tax shelter a mortgage provides. Every reason is personal so make sure you are comfortable with the decision. It may seem overwhelming at first but I assure you, it’ll be easier than you think.
2. Get approved for a loan before actively searching.
One of the worst things a buyer can do is fall in love with a home THEN find out they can’t be approved for the price. Not only are you disappointed but you’ve also exhausted a lot of your time. Unless you are purchasing Real Estate with 100% cash, you will need to obtain a loan. Some first time homebuyer programs offer 3.5% downpayment options while other programs require 20% downpayment. Every buyer is different so it’s important to know which options are available for you.
· Keep in mind that just because you are approved for a loan doesn’t mean you are obligated to take it. It simply means the money is there waiting for you if you want it. You can always cancel the loan if you’re not happy.
3. We begin the search once you get approved for a loan.
At this point, you should know exactly how much buying power you have as well as knowing what your approximate monthly payment will be.
4. When you have find a place you like, place an offer. Accompanying an offer is a deposit, also known as Earnest Money. There are various percentages a buyer can give for a deposit to show good faith.
5: Know the contingency period.
A contingency is your safety net. You should know how many days your contingency period is. Are you going to go standard California contract timing or are you choosing your own?
6. Know what inspections you need to do during your contingency period. 2 most common are the Physical and Pest. Every transaction will be different with different inspection needs. You, as the buyer can have any inspection done within the designated time.
7. Final sign-off
Once you are happy with the inspection findings and your loan conditions have been satisfied, you can get ready for your loan to fund and transaction to close.
8. Closing: Funding the loan and recordation.
If you have made it to this last step, congratulations! Your loan has funded and all necessary paperwork will be recorded with the county by the Title company. You will then receive your own keys and the house will officially be yours.
There is a lot more detail that comes with these steps. If you would like to discuss these steps in more detail, then please fill the form below.