Steps to Purchasing a Home
1. Evaluate Your Finances and Goals
- For most people, a mortgage is one of the the largest recurring monthly expenses. For this very reason, it is important to evaluate one's finances to determine one's comfort level in terms of monthly payment and risk; this should not only include one's current, but one's potential future financial situation. It is important to crunch the numbers to determine what one's comfort level is, so that one can focus on the houses where one can be comfortable both physically and financially.
2. Find the Right Agent
- Finding the right agent can make all the difference in the world. It is important that you feel comfortable with your agent...after all, you might be spending quite a bit of time with them. Your agent will....or at least should....help you navigate through the home buying process. Remember, your agent represents you, and it is their responsibility to look out for your best interests, NOT theirs! Your agent is both your advisor and your representative in negotiations. So make sure you work with an agent who is both professional and trustworthy.
3. Shop for a Loan
- Unless one has the means and desire to pay for a house with all cash, shopping for a loan is critical, because it is the means by which one will purchase a property. Needless to say, there are countless types of loans and options; therefore it is important to speak with a loan professional who can answer all your loan related questions, such as monthly payment, PMI, interest rate, etc. One might think they know the answers to all these questions, but more often than not its better to know for sure given the ever changing field of lending. Already have a lender? Great! Need some suggestions? Feel free to contact us, to talk to lenders we frequently work with.
4. Find Your Property
- There are several ways to look for properties. You can search the online, look through real estate publications, drive through particular areas looking for "For Sale" signs, or you can talk with your local Realtor who has access to the MLS, and can show you properties in person. You can also use our website to search local listings for free. If you find a property in San Diego and want to take a look, feel free to contact us at anytime, without any obligation. Remember! We are here to serve you! And don't worry, the commission is taken care of by the seller, so looking at a property won't cost you a dime!
5. Make an Offer
- After finding the right property, the next step is to make an offer on the house you selected. With the help, guidance and expertise of your agent you will sign a 'purchase offer' contract to be presented to the seller. This offer will include terms and conditions suitable to you, including items such as escrow time frame, inspection period, purchase price, down payment, earnest money deposit, etc. Making an offer does not make the house yours, but rather starts the negotiations with the seller. The seller has the right to reject, counter, or accept the offer, within a specified time. If the seller does not respond within the specified time given in the offer, then the offer is considered null and void.
6. Inspection Period
- The inspection period allows one to hire professionals to inspect the condition of the house under contract. This period is important, because it allows one to find potential issues with the house. Higher cost problems tend to associated with foundations, roofs, mold damage, and termite damage. If the buyer is to be responsible for any of these, it is important to get estimates to understand any costs that may be involved. To be fair, it is important to remember that no house is perfect, so don't be discourage by a few minor issues. Your agent can help you guide you through this process to decide what to do once you receive your inspection report.
7. Close Escrow
- After all funds are transferred and the County offically transfers the title of the property, escrow is closed. After escrow is closed, you will receive the keys to your new property at the agreed upon time. Congratulations! You have successfully purchased your new home or property!
Are you looking to buy? Have any questions? Want to see a particular property?
Please contact me (or call 858-230-4850) for a free, no obligation consultation to discuss your goals.