We all know that buying a home is a very big step to take with lots of considerations. Why do you want to buy a home? To enjoy that unique and special feeling of being the owner of a piece of real property? To put down roots, raise your family and build memories? To gain equity? Build wealth? To secure a tax shelter? To have more independence? To diversify your investments? There are lots of reasons why people buy homes – and you may now be considering your own. That’s great. Let us help you with your decision.
The cliche says that “buying a home is one of the biggest purchases a person or couple will ever make in their lives.” Well, this is absolutely true, and hiring a professional and experienced real estate agent at the outset is the biggest and most important first step to take in this process. I heard a very successful REALTOR once say that “it is more important for a home buyer to choose their next REALTOR before choosing their next home…” This is because the home buying process has many steps, and without an ethical and experienced agent, there is much that can go wrong. Conversely, by working with the right agent, you will be well on your way to finding your dream home and enjoying a smooth transaction and closing.
So, once you select your REALTOR, what’s next? What we’ll do with you is sit down and assess your situation and goals, the San Diego real estate market, and make sure you are on the path toward success. Do you need some legal, tax or financial advice to make sure you are actually ready to buy a home now? If so, please note that WE DON’T PROVIDE THAT kind of advice or information, but we know reputable professionals in these fields who do and will gladly put you in touch if you want. Our role at this stage is to provide the data, resources and real estate advice you want and need to help you finalize your purchase decision. Just like life itself, real estate success is all about timing and we will give you all of the guidance and advice you require to help you achieve your home buying goals.
As mentioned, there are many important factors in this decision, but the most important step in the deciding-to-buy part of the process is to make sure you can afford the home and close the escrow. The main question to ask and answer at this stage is: How do you plan to finance your home purchase? See the Preparing to Buy section to explore this topic in more detail.
As mentioned above, getting your financing plan together is really the most important step in the process – and it’s as important as the Deciding to Buy process discussed above. Because, if you do not have funds available to complete your purchase – the cash + loan if a loan is being used – then there is no need to make a plan, see any homes, etc. If you plan to finance the purchase with a mortgage, the first thing you should do is speak with a reputable loan officer who can discuss your goals and your specific financial details, and make sure you are in a position to complete the home purchase that you have in mind.
Through the loan application process, the loan officer will look at your financial and income records, pull your credit report and at the end of the application process, they will provide you with a “Pre-approval Letter” with the amount of the purchase price that you are approved for. After this process is completed, you will be prepared to go out with confidence in the market and be ready to make an offer on homes that work for you. If you have a special circumstance as an investor, a business owner, a veteran, or first-time buyer, we can put you in touch with the right professional to help you get the advice you need. We can also recommend with confidence some professional lenders whom our clients have used with success over the years.
Most conventional loans require a 20% down payment (your cash contribution to the purchase), with the 80% balance of the purchase price coming from your loan (mortgage) funds. Some loan programs will require you to carry Private Mortgage Insurance if you put less than 20% down. Again, the best thing to do is speak with a loan professional to find out about available loan programs that meet your needs and situation. Of course, you should shop for your loan, not only for the interest rate, but to discuss their costs and fees, available programs, time-to-close, and their customer service.
The lender you choose will guide you through the loan application process, and you should be sure and organize your financial documents such as tax returns, bank statements, investment account statements, old mortgage statements, rent receipts if you are renting, pay stubs, etc. so that your loan application gets approved without delay. The loan application process can seem overwhelming at times, but know that the more organized you are, the easier this process will be.
No, not just yet. Before we go out and see homes, we want to talk with you a bit more and find out what you want, why you are moving, what your life is like now and what you want it to be after you close and get your keys. We need to talk about timing too.
After taking care of your finances, this is the next most important part of the search and decision process. This is where you envision your life day-to-day and how your home fits into that vision. So, even before thinking about the specifics of the home, as discussed below, you should imagine where it is you want to live in San Diego County and what your daily life is like – and what you want it to be like once you move into your home. Another real estate cliche is that the most important thing is “Location, Location, Location”. Again, there is a lot of truth in most cliches and that is true with this one as well.
Do you want to be close to the ocean? If so, is that because you surf, love to swim, run on the beach, or because you just want an ocean view? Do you want to have a mountain view or a canyon-edge backyard? Do you have kiddos that need to be driven to school? Is there a particular school you want your children to attend? How long of a commute do you want? How important is it to be close to your favorite grocery store, yoga studio or gym? What about proximity to family and friends? Do you have pets that need to be walked at lunchtime? What setting do you want? Urban, Coastal, Suburban, Rural? Once you start pulling together this vision of your home life and community, we can help you choose where to focus your home search to help make your dreams a reality.
Related to these “big picture” issues of lifestyle and location is the timing of your home purchase – your personal timing as well as market timing. Whether you are currently renting a property, need to sell a home before you buy, or if you are relocating from another state, city or country, putting together a timeline for your goals is essential. When does your lease term expire? Are you starting a new job on a certain date? Do you need temporary rental housing? Do you have children who need to be registered in a new school? These are just a few of the many issues we discuss with our clients when mapping out a timeline and strategy. And while homes sell in San Diego during each week and month of the year, there are some regular seasonal market adjustments that must be accounted for. We’ll map out the timing with you and do our best to make it a smooth transition. Good planning depends on good communication and we will make sure you are always up to seeped with the details. At this early stage, we will ask how you prefer to communicate which will set the stage for a successful escrow process and overall experience. Calls, FaceTime, face-to-face meetings, emails, text, etc. We’ll talk about the best way to communicate throughout the process to make sure we can help you successfully execute your plan.
Almost. We are getting closer to seeing homes but there is still a little more work to do. Before seeing homes together, we have to find out about the specific things you want in your home.
You will have both wants and needs when it comes to buying your home. Another way to think of this is your “must haves” and “nice to have.” This is where we talk about all of the things that are important to you. Some examples: The size of the property, a house vs. a duplex, townhome or condominium, stairs vs. no stairs, pool vs. no pool, and things such as fireplaces, interior light, architectural style, number of bedrooms, square footage, yard or lot size, room for a garden? Room for pets, garage needs, noise preferences, ceiling height, layout and floor plan, view requirements, flooring preferences, any health concerns, the location of bedrooms, the condition of the property, level of upgrades, and so on.
This is just a sampling of the things we will talk about with you to make your home search targeted and productive. You may change your mind during the process – this happens a lot, and what starts out as a “need” many turns into a want, and vice versa. There is a lot to consider when you buy a home and we take our time and listen to you so we get it right, and you get the home of your dreams.
This involves both searching our Multiple Listing Service (REALTOR database) for homes that match your price and other search criteria, and you driving around the neighborhoods that you have focused on to see up close if this is where you want to live. We will set up a pinpointed search and send you only the listings that match your preferences. These will come directly from the MLS so the data will be reliable and up-to-date. We always recommend that you take time to investigate the properties that look interesting by driving past the home’s exterior, checking out your commute route, and locating the local shopping, schools and other places you will visit each day. If you discover that you actually don’t like this block or that section of a certain area, then there’s no need to see the interior of a home in those places. Remember, Location, Location, Location!
Once you have chosen some homes to see and you have approved the neighborhoods, then we will make appointments to get inside and see the home’s interior. And after you decide on a home you want to buy, we will prepare an offer on the standard California Purchase Agreement form and send it to the listing agent along with your Pre-approval Letter. We then negotiate your offer and work hard to get you the terms you want. We will strategize with you on how to present your offer. It has been a sellers’ market in San Diego since 2012, and buyers have had to adjust their approach to making an offer on a home with lots of competition. We will evaluate the situation in each home you like and customize the offering approach with each home.
When we start an escrow with a home buyer, we provide to our home buyers a detailed timeline of the entire process with important dates and references to the ?Purchase ?Agreement. This timeline will include all of the dates and deadlines for doing inspections of the home, reviewing the seller’s disclosures, getting your financing together, discussing possible repairs, etc. This way, you’ll know precisely what to expect during each phase of the escrow period. The main steps involve (i) the physical inspection(s), (ii) the loan approval and appraisal process, (iii) reviewing disclosures, and (iv) completing your due diligence. There are a lot of moving parts to buying a home, and our written outline of the process goes a long way to helping keep expectations in line with reality.
Once your offer is accepted, escrow is opened which is usually a 30-45 day process to complete the purchase process, and this is when things become real. Escrow is a third party that handles the paperwork and transfer of funds and they will assist the buyer and seller and REALTORS throughout the process. Escrow is also the time when you get a chance to “look under the hood and kick the tires” of the home and check out it’s physical condition, review disclosures from the seller, and really start to figure out whether this is the home for you. If you are getting a mortgage loan, your lender will order the appraisal which is a report on the home’s value that the lender uses as part of your loan application process. We coordinate all of this activity with you and walk you through each step along the way.
As a home buyer in California, you’ll have contingencies in the purchase agreement that protect you during the early stages of the escrow. If you are not happy with the home, you can cancel the transaction; if you are happy, you’ll remove your contingencies and move toward the closing.
This is the fun part! Again, if you are satisfied with the home after you’ve had a chance to “look under the hood”, you will remove your contingencies, move toward the closing, and start planning your move. A few days before the escrow closing, we’ll do a final walk-through of the property and then on the closing day, we’ll get the keys for you!
There are always details to be handled up to and even after the closing, and we will help you with this too. Things like getting the utilities switched over, explaining how your home warranty works and what to of if something breaks after the closing. We will be with you every step of the way even after the closing to make sure you get settled into your home and that all goes as smoothly as possible.
This description of how we help our home buyers is simply a basic outline so that you have some idea what is involved and how we help our clients. This does not include everything that we do, and this is not intended to give tax or legal advice. If we decide to work together, we will provide you all of the details you need to help you achieve your specific real estate goals.
Contact us during business hours for a free consultation so we can get started on your home purchase goals!
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
When you work with us, you'll get a real estate team with an exceptionally strong work ethic, finely tuned negotiating skills and commitment to excellence.
