Buying a home is one of life’s most significant milestones. Whether you’re a first-time buyer or an experienced homeowner, the process can be both exciting and overwhelming. To help you on this journey, I’ve outlined the steps to buying a home in a way that’s informative, practical, and even a little fun! When you’re ready, give me a call at (323) 251-8495.
Step 1: Define Your Dream (and Budget)
Before you start scrolling through listings, take some time to figure out what you really want in a home. This is where the daydreaming begins!
- List Your Must-Haves: Consider the number of bedrooms, bathrooms, the size of the yard, and other essentials.
- Identify Nice-to-Haves: Think about features like a gourmet kitchen, a pool, or a home office.
- Set Your Budget: Determine how much you can afford by assessing your financial situation. Feel free to ask me for an estimate of your mortgage payments, including a breakdown of monthly costs. I can also help you factor in additional expenses like property taxes, insurance, and maintenance.
Remember, your budget will dictate what’s possible, but your list of must-haves and nice-to-haves will guide you toward your ideal home.
Step 2: Get Pre-Approved for a Mortgage
Imagine finding your dream home only to realize it’s out of reach because you don’t have financing in place. Avoid this by getting pre-approved for a mortgage.
- Get Your Free Consultation: Our first meeting will be a great opportunity to discuss your needs and how we’ll work together to find your home.
- Choose a Lender: Shop around to compare interest rates and terms. I’m more than happy to assist!
- Submit Your Application: Provide necessary financial documents for a traditional loan, such as:
- ID
- Social Security Number (SSN)
- Pay stubs (last two)
- Tax returns and W-2s (last two years)
- Bank statements (last two months)
If you don’t have some of these documents, don’t get discouraged. There are other options available.
What is a Non-QM Loan?
Non-QM stands for “non-qualified mortgage.” This loan type is designed for borrowers who cannot qualify for a traditional Fannie Mae or Freddie Mac loan due to irregular income or significant tax write-offs. Guidelines for Non-QM loans are determined by the lender and based on the level of risk, allowing for a more flexible assessment of a borrower’s ability to repay. Non-QM loans can help borrowers who are:
- Real estate investors
- Business Owners
- Self-employed
- ITIN Recipients
- Dealing with recent credit events
- Retirees
- High net-worth individuals
- Seeking for interest only loans
- Foreign nationals
Receive Pre-Approval: This will give you a clear idea of how much you can borrow and show sellers that you’re a serious buyer. Pre-approval is your ticket to house hunting with confidence, knowing exactly what you can afford. I work with an experienced team of lenders ready to help you achieve your dreams. Regardless of your situation, I will ensure you get the best loan possible to help you reach your goal.
Step 3: Get an Excellent Real Estate Agent (Like Me!)
A real estate agent is like a personal tour guide through the complex world of home buying.
- Find the Right Agent: Look for someone who is proactive, knowledgeable about the market, listens to your needs, and has a good reputation—someone like me!
- Lean on Their Expertise: Your agent will help you find homes that match your criteria, schedule showings, and negotiate on your behalf.
Having a skilled agent can save you time, stress, and potentially thousands of dollars. Take some time to check out the reviews left by my clients; this is what your agent should be working to accomplish for you.
Step 4: Start House Hunting
Now comes the fun part: searching for your future home!
- Download My App: Here’s a link to my app where you can preview and search for houses: [Download Here] (http://hms.pt/JU6J).
- Attend Open Houses: These give you a chance to see homes in person and get a feel for the neighborhood.
- Take Notes: Keep track of the pros and cons of each property you visit.
- Stay Open-Minded: Sometimes a home that doesn’t tick every box can still be a great fit.
Remember, no house is perfect, but when you find the one that feels right, you’ll know.
Step 5: Make an Offer
Once you’ve found “the one,” it’s time to make an offer.
- Consult Your Agent: They’ll help you determine a fair offer based on comparable homes in the area. Your agent will craft the best offer for you, not the seller.
- Submit the Offer: Your agent will present it to the seller’s agent, including any contingencies like financing or inspections.
- Negotiate: Be prepared for some back-and-forth. Your agent will handle negotiations, but it’s important to stay flexible.
If all goes well, the seller will agree to your terms, accept your offer, and then the home will be under contract. Escrow will be opened.
Step 6: Due Diligence: Get a Home Inspection, and an Appraisal
A home inspection is your opportunity to uncover any potential issues with the property.
- Hire a Qualified Inspector: Your agent can recommend a reputable inspector.
- Review the Report: The inspector will provide a detailed report on the home’s condition.
- Negotiate Repairs: If the inspection reveals major issues, you may want to negotiate with the seller to have them fixed or to reduce the purchase price.
- Get an appraisal: Appraisals are necessary for traditional loans because banks won’t lend money if the appraised value of the house is less than the loan amount. The appraisal process can take about a week, but timing may vary.
The inspection ensures you’re not buying a home with hidden problems that could cost you down the road. The appraisal helps ensure the home is worth what you offered to pay. After the appraisal, all the paperwork is submitted for processing, followed by underwriting to get a conditional approval. Once the final conditions are met, the file is considered “Clear to Close,” and the loan documents are ordered.
Step 7: Finalize Your Mortgage
With an accepted offer, a satisfactory inspection, and appraisal, it’s time to finalize your financing.
- Get an insurance quote, and utilities: Arrange for homeowners insurance and set up utilities to be active on the day of closing.
- Choose Your Loan: Work with your lender to complete the necessary paperwork promptly—the faster, the better.
- Lock in Your Rate: Consider locking in your mortgage rate to protect yourself from potential increases.
- Sign the Loan Docs: You’ll need to sign several documents at escrow to finalize your loan and meet any remaining funding conditions.
This step brings you one giant leap closer to owning your new home.
Step 8: Close the Deal
With the closing disclosure signed the lender can do a funding review
- Review the Closing Disclosure: This document outlines the final details of your loan and closing costs.
- Sign the Closing Documents: You’ll sign the mortgage and other legal documents.
- Pay Closing Costs: These include fees for the lender, title company, and other services.
- Walkthrough: Complete a final walkthrough to ensure the property is in the agreed-upon condition.
If everything looks good, the bank will proceed with funding the loan!
Step 9: Closing Day
Closing day is when everything comes together, and the home officially becomes yours. The escrow will be officially closed once the Grant Deed is recorded with the County Recorder’s office.
- Leave Your Agent a Review: Don’t forget to leave a review for your agent. Personally, this is extremely important to me, as it helps me ensure I provided excellent service. Your feedback allows me to improve and become an even better agent.
- Get the Keys: Congratulations! Once everything is signed and funds are transferred, the keys to your new home are yours. Make sure to take pictures of this exciting milestone!
Step 10: Move In and Celebrate!
You did it. You’re a homeowner! Now comes the fun part: making the space your own.
- Plan Your Move: Hire movers, pack up your belongings, and prepare for moving day.
- Settle In: Take your time unpacking and arranging furniture. Don’t feel pressured to have everything perfect right away.
- Celebrate: Host a housewarming party, meet your neighbors, and enjoy the satisfaction of homeownership.
Crack open a bottle of champagne and enjoy the results of all your hard work. You’ll remember these moments fondly and smile whenever you see the pictures.
Final Tips for a Smooth Home Buying Experience:
- Stay Organized: Keep track of all your documents, communications, and deadlines.
- Be Patient: The process can take time, and there may be bumps along the way.
- Ask Questions: Don’t hesitate to ask your agent, lender, or inspector for clarification.
- Trust Your Instincts: If something doesn’t feel right, take a step back and reassess.
- Be prepared: The costs for the home inspection and appraisal are separate and not covered through escrow, you’ll need to pay for those directly.
My commitment is to be more than just an agent: I am your advisor and support, striving to ensure that each step of the home buying process is filled with knowledge, transparency, and responsibility. Every decision counts, and together we will work to help you find the perfect place to call home.
The home buying journey is both exciting and significant, representing one of the most important decisions in many people’s lives. By following these steps and staying informed, you’ll be well-equipped to make smart decisions and find a home that’s perfect for you. As a real estate agent, I am honored to accompany my clients on this journey and deeply appreciate the trust they place in me to guide them to their dream home.
Happy house hunting!
