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There are many real estate market forecasts and predictions
available - however the bottom line is that if you want to
buy your first home—there is no wrong time. This is
because the motivation to buy is not determined by regional
market conditions or by location, but rather by your personal
needs. Industry opinions, economic reports, and investor speculation
do not sway or predict when a particular individual will be
ready to buy. For the great majority of people, the most compelling
reasons to buy a home are based on individual circumstances
and personal needs. Some of these factors are:
• Family needs and desires for children/parents/in-laws/couples
• Convenience to home, work, school, social activities
• New work situation
• Sense of achievement or fulfillment
• Freedom and independence
• Sense of security and privacy
Even though there are many changes in the market, both up
and down—people still need and want to buy homes. This
desire to buy a home is deeply rooted in the fabric of our
national consciousness. The intrinsic value of homeownership—defined
as worth based on perception of value--gives far more satisfaction
than ROI calculators can quantify.
Today, there are many different loan programs with flexible
terms to fit all buyers. There are city and county down-payment
assistance programs to assist in buying a home. There are
condos and manufactured homes to close the affordability gap.
For future buyers with blemished credit, there are many debt
reduction and counseling programs to help gain a fresh start.
How do you make the leap to become a homeowner? First, you
must determine that you want to buy a home. Sounds simple,
yet many people find that getting started is the hardest part.
There are perceived obstacles in the minds of many would-be
homeowners: Can we save enough money for the down payment?
How can we get out of our current lease? Where can we afford
to live?
The goal is home ownership, and there are many steps to reach
the goal. You may not be financially ready yet, but you need
to ascertain where you are NOW in relation to your goal.
Get your finances in order. Accurately determine your financial
situation and check your credit to determine where you fall
as a borrower. Look at all of your available assets for your
down payment and examine all of the finance options available
to you. If you have some credit blemishes, take the time to
make timely payments to your creditors to present the best
financial picture to your home lender. Make sure that you
have a track record of stability in your employment history.
Postpone any major purchases such as cars, motorcycles, or
large appliances until after you close escrow. Your actual
home purchase may still be 12-18 months down the road, but
you can still prepare for it now.
Get pre-approved for your mortgage. Once you’ve cleared
the financial hurdles, talk to your lender or broker to find
out how much you can afford to borrow along with the expected
out-of-pocket costs you will need to incur for the closing.
This will include the required down payment (if necessary)
along with funds for closing costs, which can run 3-4% of
the purchase price.
Pre-approval also allows you to shop for a home with an accurate
price range. If you are buying in a seller’s market,
you may want to search for homes that are considerably below
your approved price range, so that you can have the most room
for negotiation.
Find a credible licensed real estate agent. Look for an agent
that can work with you based on YOUR needs and your schedule.
Check references of previous clients and make sure that he
or she is responsive and available to you. You may not know
exactly what you want in terms of a new home, and your agent
should work with you to determine your needs and help you
find a property that meets your immediate and future needs.
Your agent should be familiar with the area where you plan
to move. Check with family and friends for successful agent
referrals. Ask them how satisfied they were with his/her services
and if they would use them again.
Become an informed and practical buyer. Once you determine
where you would like to live, determine what factors are most
important for your family. Calculate your new commute time
and research school information for your children. You may
want to consider the proximity to a place of worship and shopping
in the area. Make sure to evaluate the surrounding factors
that are most important to you, along with factors that are
least important.
Find a home that works for you. Check out the floorplan to
make sure that it meets your needs. Envision yourself along
with your family, living in the home. What are the key points
of consideration for your home? If you spend a lot of time
in the kitchen, then you want to make sure that the kitchen
can accommodate your habits.
If you will be working from home, make sure that your home
office setup will work. Make sure that all of your telecommunications
and electrical needs can be met. Is the backyard adequate
for your family? Do you need a garage? Are you willing to
make major repairs to the home? Does the style reflect your
taste? Can the home grow with you over the next 5 years, 10
years or 30 years?
Make the offer. Once you have located a property that meets
your needs, make an offer based on the listing price, along
with comparables information and market considerations. Your
agent can work with you to determine the best price, along
with any contingencies for the sale. Some strong purchase
offers include:
- Short contingency removal periods
- Short escrow periods
- Increased cash deposit
- Love letter from buyer
- Pre-approved letter from lender guarantee for purchase
price
It is good to get an independent home inspection, so that
you can know what the potential pitfalls and future maintenance
needs may be. Your offer may be accepted as-is; you may face
a counter-offer from the seller, or you may be rejected. In
a seller’s market, you may find yourself bidding with
several other buyers for a single piece of property. Work
with your real estate agent to determine what is customary
in your area. This is when his/her negotiation skills really
come in handy!
Once your offer has been accepted, you will enter an escrow
period, where all of the title research will be handled, funding
requirements met; tax and title transfer paperwork managed.
Prior to the close of escrow, you will sign all of your finance
paperwork, and pay your remaining deposit and closing fees.
After funding is complete, the title company will record the
new purchase deed with the County Recorder’s office,
and you will officially “close”.
Congratulations! Now get ready to move! Make sure to connect
your new utilities (and disconnect your old service) along
with mail forwarding.
Everyone wants someplace to call their own, and whatever
your financial picture, there is always a way to purchase
a home. The purchase of a home can be a lifelong achievement,
but one that is truly a worthy accomplishment.
About the author:
Cecelia Taylor writes for San Diego Real Estate Authority.
Find detailed descriptions of over 85 communities in the San
Diego real estate market; compare average real estate prices
in these communities and more. Everything you need to make
an informed decision about purchasing your next home in San
Diego is right here.
source: http://www.sandiegorealestateauthority.com
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There
are many real estate market forecasts and predictions available
Buying
rental properties can be a great way to build your wealth.
There are
many good selling tips that can help you
to sell your property.
