Finding the right home for you
The first step in finding the perfect home is to create a list of your “wants” and “needs” so that your realtor can start researching some compatible properties.
Some of your preferences might include:
- number of bedrooms
- number of bathrooms
- big backyard
- in ground pool
Finding the Right Lender & Getting Approved
A pre-approval through a lender is a document from either a lender or mortgage broker confirming they are willing to lend you a specific amount of money to buy a home.
Shop around for the lowest mortgage rate you can get
Fortunately for homebuyers, mortgage rates have been at record lows. Take time to shop around for the lowest mortgage rate you can qualify for. You can also ask me for any lender recommendations and I will be happy to help!
What is my interest rate?
They are super low right now, so it is a really great time to buy
What type of loan should I be getting?
There are several different loans programs- FHA, conventional, Va, etc- and all of them have different requirements, so talk with your lender to find what would work best for you.
Escrow
What is escrow?
Escrow is a neutral third party or attorney that handles the exchange of money and documents during a home sale. This third party's responsibility is to oversee the transfer of ownership from seller to buyer. Escrow starts when a homebuyer submits an offer and ends when they close on the home. The second escrow period kicks in after the buyer closes on the home and ends once they've paid off their mortgage or refinance with another lender .
Why is escrow important?
Escrow is a service that protects the public and minimizes the potential risk involved in any real estate transaction.
Who can perform escrow services?
In order to perform escrow services in California, the escrow law states that an escrow must be a corporation in the business of receiving escrows for deposit or delivery and be licensed by the California Corporations Commissioner. However, there are some exceptions.
Who chooses the escrow holder?
The buyer may have a preference and so may the seller, but ultimately they must come to an agreement.
When does escrow open?
In the case of a real estate sale or purchase, escrow usually opens when a fully executed purchase agreement has been delivered to an escrow holder.
When does escrow close?
Escrow is said to have closed when ownership transfers from the seller to the buyer, which is when title is recorded with the county.
Benefits of Escrow
Escrow benefits the homebuyer by making sure the seller fulfilled all the conditions of the sale, such as repairs they agreed to make. It also benefits the seller in case the buyer pulls out of a deal without a contractual basis to do so, in which case the seller would get to keep the earnest money.
Escrow: closing a property
When the home closes, the escrow agent will transfer the deed to the buyer, while the purchase money is transferred to the seller, completing the purchase of the home.
Cost of Escrow
The cost of escrow, including the lender closing fees and title insurance, will typically be about 1-2% of the value of the home.
Buyer Tips
Customize your offer to the seller
A competitive and customized offer is most appealing to the seller and can defiantly help to increase your chance of the seller accepting the offer.
Search for homes below your budget
In a sellers market, homes are more likely to sell for above listing price than the original listing price. It is recommended to look for listings below your budget. If the home does in fact happen to sell above the original listing price, it will still fall under or around your budget price.
First Time Home Buyers: Things to Avoid
Not getting prequalified
Forgetting about closing cost
Not doing a home inspection
Using credit cards while in escrow
Not hiring a realtor