You Are Making One Of The Smartest Decisions Of Your Life!
Did you Know That 90% Of Millionaires Became So Because Of Real Estate? Yup, it’s true! Who knows maybe that’ll be you!
Follow my Santa Clarita home buying guide and it will answer all of your real estate questions and concerns.
I’ll cover the home buying process from start to finish giving you tips and advice along the way. You’ll learn what to do first, what inspections to do, who will pay for what and so much more!
Buying a home can be overwhelming but thankfully, with a little common sense, a great agent and your Santa Clarita Home Buying Guide you will do just fine!
Come on let’s go!
Your Santa Clarita Home Buying Guide – First Things First – Loan Approval
The first thing any home buyer must do is get pre-approved for a mortgage loan through a reputable lender. This is so important that many realtors won’t take you to look at homes if you haven’t been approved. It makes sense, how will you know what to look at if you don’t know what you can afford? No one wants to fall in love with their dream home only to find out they aren’t approved for that amount.
How do you find and choose your mortgage lender? You can ask your family, friends, do a search on line, ask your bank or ask your realtor. Your real estate agent works with lenders all the time so they’ll have a local, reputable lender they can refer you to.
Good questions to ask your lender are, how long have they been a lender, what current financing options are available, what will your interest rate be, is there any private mortgage insurance, what will your payments be, how many points do they charge and what kind of loan would they recommend?
Asking what kind of loan the lender is recommending is an important question. If you are doing an FHA loan which allows you to put just 3.5% down you are restricted from some of the condo and town home complexes here in Santa Clarita because they aren’t approved for FHA loans. Single family homes are fine for FHA, just condos and townhomes need an approval.
Some of the items you will be asked to provide are your tax returns for the last two years, paycheck stubs, and your credit report. You’ll then see what interest rate you are approved for, what your monthly mortgage payment will be and what price range you qualify for.
Real Estate Is The Best Investment In The World, Because It’s The Only Thing They’re Not Making Anymore Of! Will Rogers
Santa Clarita Home Buying System – Finding An Agent
You can find an excellent agent the same way you found your lender, by referral or you can interview and research different agents. You can Google an agent, check their social profiles, check their website, look at the current real estate magazine, or walk into a real estate office.
The realtor you choose has an enormous responsibility to you. They will be advising you on the contract, on the areas you’re looking in, inspections, repairs and so on. You want someone who works specifically in the area your looking at, who has experience, who can answer your questions, responds promptly to your inquiries and most of all an agent you trust and feel comfortable with.
Or save yourself a lot of time and hassle and just give me a call! Haha! Did you see that one coming? Hey, what can I say, it’s my blog!
Real Estate Is The Safest Investment In The World. – Franklin Roosevelt
Santa Clarita Home Buying Guide – Home Shopping!
Great! Now you have your pre – approval letter, first page of your credit report, verification of funds and a great realtor. Next step is deciding what kind of home you want. I highly recommend doing this before you start looking, otherwise you can end up frustrated and overwhelmed and we want to avoid that at all costs.
Get out the old pen and paper and make a list of the items that are important to you, location, number of bedrooms etc. Then decide what you are willing to be flexible with, pool, separate shower and bath etc. and finally what are the items you absolutely do not want, bad schools, high crime etc.
An important point is not to make your list too long and too specific that it’s simply impossible to find a home that matches all of your wants and needs. I’ve had home buyers do this in the past and they lost out on so many beautiful homes, only to purchase a home that was far less than what they wanted originally.
Buying real estate is not only the best way, the quickest way, the safest way but is the only way to become wealthy. – Marshall Field
Santa Clarita Home Buying Guide – Writing The Offer.
Once you’ve found the home of your dreams it’s time to write an offer!
How do you decide how much to offer? First do your research; your realtor will provide you with a list of homes with similar square footage and upgrades that have sold within a one mile radius going back approximately three months. Then you and your realtor will take into account the current market trend, whether it’s a seller’s market or buyer’s market, the active list prices, how long the home has been on the market and the current inventory.
Your realtor should also call the listing agent and get a feel for where the seller is in the home selling process. Perhaps they have to sell because they already put an offer in on another home or they are firm on the list price because they’ve already reduced it once. You’d be amazed at how much you can learn with a simple phone call.
Real Estate Is The Basis Of All Security,And About The Only Indestructible Security. – Russell Sage
Santa Clarita Home Buying Guide – The Contract
So far so good right? Now you and the seller are going to open escrow. An escrow company is a neutral third party to the transaction. You have three days to give your earnest money deposit to escrow. Your earnest money deposit goes towards your down payment.
Other important time frames are your contingencies. You have 17 days to do all inspections. These usually include termite and a home inspection. You can use anyone you want but normally your realtor will recommend someone. You will have to pay for the home inspector at the time of the inspection and the termite inspection itself is negotiable.Twenty one days for your loan contingency and 17 days for your appraisal contingency. Contingency periods start the day after you have both signatures on the accepted offer.
Inspections are done at the beginning of the transaction. Once they are finished you have the right to ask for any repairs or termite work to be completed. The seller also has the right to say no to both and if you don’t like their answer, you have the right to cancel the transaction.
The seller will give you the disclosures they have filled out concerning the house. Disclosures cover a wide range of questions about the house from any repairs that have been done to whether anyone has passed away in the house. Take your time and read over them carefully.
The appraisal will be ordered by your lender. If the appraisal comes in lower than the purchase price, you can legally cancel the transaction or better yet, it opens up the opportunity to negotiate with the seller. Usually both parties meet in the middle. The seller reduces the list price and the buyer comes in with some money.
Five days before the close of escrow you will do your final walk through of the home. This is to confirm it is in the same condition it was in when you submitted your offer. It is not a contingency however. If there is a problem you can hold up the closing of escrow until it is resolved.
Once your loan had funded and recorded you will receive the keys to your new home by 6:00pm unless some other arrangement has been made.
You are now a home owner!!
I hope I have explained the process in a way that made it easy for you to understand. If there are any questions I didn’t answer, please let me know. I am here to help.