Everything You Need to Know About Buying a Home in California

$1.8 Million Homes in California - The New York Times
Thinking about buying a home in California? Congratulations! Owning a home is one of the most rewarding experiences you can have. But before an individual start house-hunting, there are some things one should know about the process. In this blog post, we’ll cover everything from finding the right real estate agent to getting a mortgage. 


Tips to consider.

  • Finding the Right Real Estate Agent. 

One of the first steps in buying a home is finding the right real estate agent. This person will be your partner throughout the entire process, so it’s important to choose someone you trust and feel comfortable with. When meeting with potential agents, be sure to ask about their experience, how they would handle various situations that could come up during the purchasing process, and most importantly, whether they have your best interests at heart. It’s also a good idea to get referrals from family and friends before making your final decision. 


  • Getting Pre-Approved for a Mortgage. 

The next step is to get pre-approved for a mortgage by a mortgage loan officer California. This will give you an idea of how much house you can afford and help you narrow down your search to homes that are within your budget. When applying for pre-approval, your lender will pull your credit report and score as well as look at your employment history and income. They’ll use this information to determine how much money they’re willing to lend you. 


  • Making an Offer on a House.

Once you’ve found the perfect house, it’s time to make an offer. Your real estate agent will help you determine what price to offer based on comparable homes in the area that have recently sold, as well as any other factors that may be unique to the property (e.g., location, condition of the home, etc.). Once you and the seller have agreed on a price, it’s time to move onto the next step: escrow! 


  • Opening Escrow.

Escrow is when both parties agree on all terms of the sale and deposit earnest money (usually 1-2% of the purchase price) into an account that will later be used towards closing costs or down payment on the property. The escrow period is typically 30-60 days but can be longer or shorter depending on the situation. During this time, both parties will complete their due diligence which includes getting inspections done, applying for loans (if necessary), and anything else needed in order for the sale to go through smoothly. 


  • Who Pays What at Closing? 

At closing, there are several fees that need to be paid in order for the sale of the property to be finalized. These fees include things like loan origination fees, points (prepaid interest), appraisal fees, title insurance, etc. It’s important to ask your lender ahead of time what fees you’ll be responsible for so there are no surprises at closing. In addition, don’t forget about things like moving expenses and homeowners insurance! 


The ending words.

Just follow the steps outlined above and you’ll be well on your way to becoming a homeowner in no time!