preparing to buy
First things first...​
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Are You Financially Ready?
Before diving into the home-buying process, assess your financial health. This includes checking your credit score, calculating your debt-to-income ratio, and understanding your overall financial standing -
Down Payment Requirements
Start saving. Depending on the loan, you’ll need anywhere from 3% to 20% of the home’s price.* -
Creating Your Home Buying Budget
Set a realistic budget by considering not just the purchase price, but also ongoing costs like property taxes, insurance, and maintenance.
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*Some programs offer 0% down. Speak to a trusted lender for more info.
Getting pre approved
Your ticket to making offers that sellers will take seriously.
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What You’ll Need:
To secure a pre-approval, you’ll need to provide several key documents:-
Income Verification: Pay stubs, W-2 forms, or tax returns (especially if you're self-employed).
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Credit History: Your credit score will be reviewed, so it’s good to know where you stand.
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Employment Details: Your employment history and current status help prove your ability to make payments.
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Asset Documentation: Bank statements, retirement accounts, and other financial assets may be required.
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Why It’s Important:
Getting pre-approved shows sellers and agents that you're a serious buyer with the financial backing to close the deal. It also gives you a clear picture of your budget, ensuring you focus on homes within your price range. In a competitive market, a pre-approval letter can make the difference between getting the home you want or losing out to another buyer.
Your home buying team
Selecting the Right Realtor®
Choosing the right Realtor® is key to a successful home buying experience. Here’s what to look for:
Experience & Local Knowledge: Your Realtor® should know the local market inside and out, understanding neighborhood nuances, market trends, and pricing.
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Communication Style: You’ll be working closely with your Realtor, so choose someone whose communication style aligns with yours—whether you prefer detailed updates or concise summaries.
Client Reviews & Testimonials:Look for a Realtor® with strong client reviews and testimonials. Past success is often a good indicator of future results.
Availability & Responsiveness: The market moves fast, and so should your Realtor®. Make sure they’re responsive and available when you need them.
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The Buyer/Broker Agreement: What You Need to Know
As of 2024, there’s an important change in how buyers work with Realtors—the buyer/broker agreement.
What Is It? The buyer/broker agreement, A.K.A the is a formal contract that outlines the relationship between you (the buyer) and your Realtor®. It details the services your Realtor® will provide and the compensation they’ll receive.
Why It’s Important: This agreement ensures that both you and your Realtor® are on the same page, protecting your interests and clarifying expectations. It also reinforces the Realtor’s fiduciary duty to you, meaning they are legally obligated to act in your best interest.
When You’ll Sign It: You’ll need to sign this agreement before your Realtor® can provide property information, schedule showings, or make offers on your behalf. It’s a step that formalizes your working relationship and ensures your Realtor® is fully committed to helping you find your dream home.
MAKING AN OFFER
Found the one? Time to make your move!
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Offer Strategy: Work with your Realtor® to craft a competitive offer.
Negotiations: Be prepared for counteroffers and negotiations.
Earnest Money Deposit (EMD): A deposit (typically 3% of purchase price) to show you’re serious about the offer.
navigating escrow
The offer is accepted, now what?
Submit EMD: Your EMD will be due within three days of opening escrow
Home Inspection: Cover major systems like a general, sewer, termite to uncover any hidden issues.
Appraisal: Ensure the home’s value is in line with your offer guidelines and loan parameters.
Contingencies: Loan, Appraisal, Inspection, and Insurance (CA as of 2024)*
Final Walkthrough: Make sure everything is in order before you sign your Verification of Property.
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* Depending on your offer, you can have less or more contingencies
closing the deal
You’re almost there!
Review Documents: Carefully go over all closing documents.
Sign on the Dotted Line: Finalize the paperwork.
Get the Keys: Welcome to your new home!