Here is my Guide to Buying a House

Buying a home usually represents your single biggest investment – and debt.

Want to buy a home? The home buying process is one of the most exciting, and frequently stressful, experiences you’ll ever go through. This holds true whether you’ve bought many homes or you’re looking to buy your first, whether you’re in the market for a new primary residence, an investment property or that perfect vacation getaway.

Today’s real estate market can offer more opportunities, yet can be filled with more risks, than ever before. There are a multitude of factors to consider and decisions to make. When buying, it’s crucial to have all the available resources necessary to make a well-informed decision, as well as the time required to make use of those resources.

It’s important to enlist the help of a trusted real estate agent who will be able to provide expert guidance at each step of the buying process. To find and buy a home includes the following steps:

1) Define your goals, research your options, make your plans

To buy a home, it’s important to educate and prepare yourself as much as possible. This means clearly determining the reasons you’re buying and what kind of home you’re looking for.  When considering financing, it also means examining your current financial situation and projecting how much you can afford. Once you’ve answered these questions, even tentatively, you’ll be in a better position to research housing and mortgage options, and create an action plan and timelines for moving forward. Although it is possible to do this yourself, you will always benefit by consulting an experienced real estate professional right from the start.

2) Contact a real estate professional

There are many factors to consider when buying a home, since no two homes or transactions are exactly the same. Moreover, with all the unique opportunities and potential pitfalls of the current market, it’s more important than ever to contact a real estate agent once you’ve decided to buy. When choosing a real estate agent to guide you through the property search, financing, negotiation, and transaction processes, you should consider their local market knowledge, communication skills, and track record.

3) Get pre-approved for a loan

I strongly recommend that you get pre-approved for a loan before you start viewing homes. The pre-approval process involves meeting with a lender and authorizing them to examine your current financial situation and credit history. On the basis of this examination, the lender may provide you with a document detailing the amount you can borrow to buy a home. Your real estate agent (Amanda Fallon 🙋🏻‍♀️) can provide testimony of lenders they have worked with previously and connect you with a preferred lender to start your pre-qualification.

The benefits of pre-approval include:

  • You’ll know what you are eligible to borrow and be able to plan accordingly
  • As a qualified, motivated buyer you’ll be taken more seriously when you make an offer
  • Lenders can tell you if you qualify for special programs that will help you afford a better home (particularly if you’re a first-time buyer).

Real estate financing is available from many sources, and an experienced real estate professional will be able to suggest lenders with a history of offering excellent mortgage products and services to buy a home.

4) View homes and select THE ONE

Simply put, the key to the home search process is knowing what you’re looking for. Among other things, that means distinguishing between “must-haves” and “like-to-haves”. That said, here are a few recent facts about the search process that might put your experience in perspective:

  • 92% of buyers use the internet or mobile apps to search for homes.
  • The typical buyer searches for 12 weeks and views 12 homes.
  • 97% of buyers view real estate agents as important in the home search process.

There are many benefits to starting your home search on my website: You can view many homes and their details, access neighborhood info, and read helpful blog posts. The next step is to narrow down your list and view these homes in-person with your real estate agent. While the property details may seem similar online, homes can be very different in terms of layout, design, workmanship and other aspects. You should view homes with your real estate agent who’ll notice things you might miss, provide expert analysis, and act as an impartial sounding board.

5) Make an offer and negotiate with the seller

When you find the one, it’s time to make an offer. Your local real estate association has contracts that are generally used for transactions in your area. These contracts enable you to specify a sale price and also allow the inclusion of clauses specifying various terms of purchase, such as the closing and possession dates, your deposit amount, and other conditions. You should carefully review these clauses with your real estate agent to be sure that they accurately express your intended offer. In addition to drawing up the contract, your real estate professional will be happy to address all of your questions about the offer process.* Once you’ve written the offer, your real estate agent will present it to the seller and/or the seller’s representative. At that point, the process may vary somewhat. Generally speaking, the seller can accept your offer, reject it, or counter it to initiate the negotiation process. Successive counter-offers, with deadlines for responding and meeting conditions, may be exchanged between you and the seller until a mutual pending agreement is reached or the negotiations breakdown. Negotiations to buy a home involve many factors relating to different market conditions, the home itself, and the sellers.

6) Secure your financing

Once you have a pending agreement to buy a home, it’s time to return to your chosen lender to finalize mortgage details in order to close the deal. This means finalizing your down payment, interest rate, regular payment schedule and all other financial conditions associated with the closing. As the saying goes, ‘let the buyer beware’. Unfortunately, too many buyers suffer negative consequences from not fully understanding their financing decisions. Thus, it’s crucial for you to work with people you trust. In this regard, a good real estate professional can become a true friend for life.

7) Close the deal

If you’ve efficiently taken care of everything connected with purchasing your new home, taking ownership should be a positive joy with no surprises. Key steps to a smooth closing to buy a home include: Getting a title search – you will need a historical review of all legal documents relating to ownership of the property to ensure that there are no claims against the title of the property. It’s also necessary to purchase Title Insurance for protection in the event of errors in the records or mistakes in the review process. The final walkthrough – before you buy a home, you will be given the chance to look at the home one last time to make sure it’s in the same condition as when you signed the sale agreement. The settlement – typically, on the Closing Date you’ll meet with your real estate agent and escrow agent to verify and sign all the paperwork required to complete the transaction. The settlement will include paying your closing costs, legal fees, property adjustments and transfer taxes. At that point, you’ll receive the property title and copies of all documentation pertaining to the purchase. Oh, and one more thing – you’ll get the keys! In most cases, Possession Date will fall within a few days, and you will be able to move into your new home. 

Do you want to buy a home in a new construction community? Visit my blog Buying New Construction in Orange County (also applies to Riverside County) for crucial information you need to know before stepping foot onto any model home sites.  Once you’ve secured your agent (me 🙋🏻‍♀️), been pre-qualified, and are ready to visit some model homes, head over to my blog Tips For Touring OC Model Homes for some pointers!

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