BUYING A PROPERTY
Calculate How Much You Can Afford. Your first step in buying a home is to fully understand your finances. Tally up monthly expenses vs income and come up with an amount that you would feel comfortable paying each month. It's not as fun as looking at homes, but it's important and necessary to determine how much you can afford.
Get Pre-approved for a Mortgage: A pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting pre-approved is not a loan guarantee; it simply states how much your lender is willing to lend you. This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer. Pre-approval letters have an expiration date, so be sure to ask your lender how long your letter will remain valid.
Find the Right Real Estate Agent: As you set out to find the right home for your family, be sure to select trusted professionals to help you make informed decisions and avoid pitfalls. I love working with first-time homebuyers! I will help guide you through this sometimes difficult, but very rewarding home buying process. Think of your agent as your partner in this journey. Let me know how I can help!
Start Looking at Homes: Your real estate agent will help you hunt for houses within your budget. It’s a good idea to make a list of your top priorities. Rank your priorities from most to least important and then I can show you homes that fit your criteria. You may need to spend some time searching for the perfect home, so don’t get discouraged if your hunt takes longer than you expected. Only you can decide which property is right for you. Once you find a property that fits your needs and budget, it’s time to make an offer.
Make an Offer: Through this phase, as your real estate agent, I will work closely with you to offer my professional guidance as you navigate through the back and forth of negotiations. I’ll work with you to determine a fair and competitive offer price while making sure you stay within range of what you can afford. I’ll also handle contract paperwork and dealings with the seller’s agent.
Inspection and Appraisal: If you have a home inspection contingency, you have the option to renegotiate the sales price, require the seller to make repairs, or back out of the offer. In the competitive SF Bay Area market, inspections are typically done ahead of time by the seller and having an inspection contingency may make your offer less competitive in a hot real estate market. There are always exceptions however, and as your agent I will help guide you to the best outcome. Once your offer is accepted (ratified), your lender will order an appraisal. The home appraisal is a necessary step in getting your financing secured, and it protects you and the bank by making sure the home’s value matches the agreed upon sale price.
Coordinate the Paperwork: Secure your closing funds. Your lender will outline your closing costs in your loan estimate. Closing costs vary, but you can expect to pay 2%-5% of the loan amount. Read closing documents. You typically don’t have time to read all documents thoroughly at closing. Ask for the closing documents ahead of time so that you have ample opportunity to review them. Three days before your closing date, you'll receive your closing disclosure, which lays out the final details of your home loan and the closing costs you have agreed to. Review this document carefully. If you note any large variations from the costs your lender provided in your loan estimate, reach out to your lender for clarification.
Close on Your New Home: Escrow holds all funds and won't release until all paperwork has been properly signed by all parties. A final walkthrough will be done several days before the close of escrow date. Escrow will arrange for both parties to sign all documents related to the sale. When all paperwork is completed and funds are released, you as the buyer will receive keys to the property CONGRATULATIONS! You are the proud owner of your new home!
