There’s no one way to buy a home, and the steps below might take place in a different way or order for you. But there’s a process to buying a house, and it doesn’t hurt to have some idea what to expect no matter where you are in your home-purchase adventure. We’ve outlined some of the key steps to purchasing your dream home, and we’re on hand to make sure the process goes as smoothly as possible when you’re shopping with America’s Finest Property Management.
- Understand Your Finances: Can you afford to purchase a home? Maybe you’ve been saving for years toward owning a place on your own, or funds are tighter than they’ve ever been. Buying a home is an expensive and time-consuming process, and it’s important to know where you stand before making the financial and emotional investment required to make a successful purchase. Whether you’re going it alone or looking to buy with a partner, it’s essential to make sure that everyone involved knows what they’ll be expected to offer up before the final paperwork is signed.
- Consider Your Down Payment: There’s a common misunderstanding that you’ll be expected to pay as much as 20% of your future home’s worth to secure a mortgage. This isn’t the case. You may be able to get away with putting down as little as 3-5% depending on your loan! There are programs in place to help first-time homeowners, and your credit will determine the rest.
- Get Preapproved for a Mortgage: What type of mortgage is right for you? There are several types, including conventional loans, FHA loans, VA loans, and more. The type of mortgage you qualify for will determine your required down payment. To determine this, your lender will consider factors like your credit, income, and assets. Once that’s done, you can proceed to looking at homes within your budget. But you don’t need to go it alone.
- Find a Reliable Real Estate Agent: With a licensed and experienced realtor like Hector M. Ruiz of America’s Finest Property Management, you can be sure that you’ll be in capable hands as you begin considering possibilities for your future San Diego area home and all it means for you.
- Start Shopping!: This is the fun part! Your real estate agent can help you narrow your search to the most choice properties. With an idea of what your budget is and what you’d like from your future home, your realtor will identify the right homes for you and help you navigate the process of touring and, potentially, making an offer.
- Make an Offer: You’ve found the right house! Congratulations! Now it’s time to make an offer. Your real estate agent will be a huge help now, assisting you with drafting your offer letter and preparing a counteroffer if necessary. Count on some negotiation as you work to find a deal that works for you and the seller.
- Secure the Right Mortgage: So the seller has accepted your offer. Now you need to secure your mortgage. This means a lot of paperwork, whether you’re going with the lender that preapproved you or finding another one.
- Inspection and Appraising: Even after your offer has been finalized, your lender will still need to form a solid understanding of what your future home is worth. That means an inspection and appraisal of the property. This step is important because it protects you and your lender by ensuring that the home’s worth matches the agreed purchase price. The inspection will identify any underlying issues that you might have missed when you first chose the house, like faulty electrical work or water damage inside the walls.
- Final Negotiations: With a better understanding of how much your future home is truly worth, you can negotiate any repairs or credits. You’ll work with the seller to determine who’s responsible for any necessary work.
- Close on Your New Home: At last, you’re at the final and most important step – closing on your home purchase. You’ll need to do a final walk-through of the property to ensure that any agreed-upon repairs have been completed before signing off on the final documents. You’ll likely be expected to provide another 2-5% of the loan amount for closing costs. The paperwork may seem endless, but at the end it will all be worth it as you’re handed the keys to your new home!
Whether you’re a first-time homeowner or experienced with frequent moves, an experienced realtor like Hector M. Ruiz and America’s Finest Property Management can help the process run as smoothly as possible. You can check out our Frequently Asked Questions about buying a home, selling a home and property management here.