Buying your first house anywhere is a big deal, but especially in a state like California where home prices, competition, and regulations can all seem very overwhelming for someone new to the process.
Here’s a look at the key steps you can expect to take on your way to becoming a Californian homeowner.
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Start Your House Hunting Journey With a Dose of Realism
It’s always smart to check out your budget before you start dreaming about houses that might not be within your reach at this point.
If you’re a first-time buyer, and looking to book one-way truck rental in California, as you’ll be heading to a place that you can finally call home, there’s some hoops to jump through before you get to that point.
Remember, California has some of the highest home prices in the country, so getting realistic about what you can afford is critical. A good starting point would be to use a mortgage calculator to estimate your monthly payments, including property taxes, insurance, and potential HOA fees.
As a general rule, your housing costs shouldn’t exceed 30% of your gross monthly income. That’s a challenge, but it will give you financial breathing space if you stick to these parameters. Also, don’t forget to budget for upfront costs like the down payment and closing fees.
Make Sure You Get Pre-Approved For a Mortgage
Once you’ve got a clear idea of your budget, the next step is to get pre-approved by a lender. This process confirms how much you can borrow and shows sellers you’re serious.
The reality is that, in competitive California markets, sellers are unlikely to take your offer seriously without a pre-approval letter.
Find a Real Estate Agent That Meets Your Needs
It can make a huge difference when you find a real estate agent who knows the local market and has experience with first-time buyers. A good agent will be able to guide you through all the buying steps, and help you find homes within your budget.
They will be experienced enough to negotiate the best possible deal on your behalf. They will also have a good handle on California’s many unique market trends, zoning laws, and disclosure requirements. That’s why working with a knowledgeable agent is a must.
Focus on an Area That Aligns With Budgets as Well as Your Aspirations
It’s essential to view homes that meet your criteria. The likelihood is that you may have to compromise on things like size or location to stay within your budget.
Always be prepared to act fast if you find a home you like. In property hotspots, properties can often receive multiple offers within days.
Making Your Offer
When you find a house, your agent will help you put together an offer. This includes the price, financing details, and any relevant contingencies, such as inspection or appraisal cost.
It is also advisable to agree on a realistic timeline. In a seller’s market, it may be necessary to offer slightly above asking or waive some contingencies. However, make sure you always weigh the risks carefully.
Complete The Inspection and Appraisal
Once your offer is accepted, you’ll enter escrow. This is when inspections and appraisals are scheduled to happen.
A home inspection checks the property’s condition, while an appraisal confirms it’s worth what you’re paying. If any major issues are found, you have the option to renegotiate or walk away.
Closing The Deal and Moving In
After all the paperwork, inspections, and final approvals have been completed, you’ll be ready to close the deal. This involves signing the final documents, transferring funds, and receiving your keys.
Once you have taken all of these important steps, the good news is that you will then officially be a California homeowner.
Read Next: 10 Tips to Help Homeowners Sell Their Property Faster
