Buying your first home can be one of the most rewarding yet terrifying experiences. With so much on the line (literally hundreds of thousands of dollars) you want to make sure that you fully understand all the implications before you sign the paperwork.
The question is, who do you trust to truthfully work towards your best interest? We searched San Diego to find one great example of someone who goes above and beyond. John Selby will be guiding us today on exactly what you need to know, as your home buying journey.
Before you get started
1) Don’t stress about financing.
One of the most common misconceptions everyone has is thinking that you need to have a lot of money saved up before you can even begin to buy a house. This is not true. Once you speak with a realtor they will be able to redirect you towards a lender that can look at your finances and determine what programs you would most benefit from. All to say, that if you don’t have a lot of money saved up, its okay! Now that we have addressed that elephant in the room, let’s get started.
Where do you start?
The most common question anyone is going to ask when they are interested in buying a home is, “where do I start?”. As obvious of a question as it may be, there can be a lot of confusion as to what the first steps should be, who you should talk to and what you actually need to get started.
2) Determine what you want and need
The first step in any home buying journey is to first think deeply about what it is you want and need in a new home. Everything from how many rooms you will need to how comfortable you are spending on a new home. Having these answers in mind before you walk into a realtor’s office (step 2) will greatly help you speed up the process and it makes sure your realtor knows exactly what to show you
3) Talk to a Realtor
In order to get the most out of your time with minimal effort, go speak to an experienced local Realtor. Someone who has lived and worked in the area will have a perfect understanding of the market conditions, neighborhoods, the standard of living and local businesses to give you a well-rounded idea of what to expect. They will also be the ones who will point you towards financing and then negotiate for your new home.
The purpose of your initial meeting with a realtor should be to determine whether you can trust them. Determining whether they are more interested in guiding you through the process or just trying to get you to sign is an important factor because purchasing a home is a huge investment. You do not want to wing your way through this and you especially don’t want someone who doesn’t see how important this is for you.
An experienced realtor will have no problem answering all of your questions because ultimately, they want to help you. Commonly this is the time in which people start to talk about what their needs and wants are in a home but resist the urge and save this for later (step 4). The reason being that any realtor knows that before you can even start getting excited about finding your perfect home, there is one critical step you have to take. You have to find a lender and get pre-approved.
4) Find a Lender
Getting pre-approved by a lender is a critical step because of how much value it brings to the table not only for yourself but for the realtor and the home seller.
How much you qualify for
Just by getting pre-approved you will know exactly how much money you qualify to receive for your future home. Just remember that you don’t need to use all the money a lender qualifies you for, so take out only as much as you are comfortable using. Knowing how much you qualify for also helps you establish what price range is within reach.
5) Strategizing with your Realtor
Coming back to your Realtor with a pre-qualification lets them know you are serious about and able to purchase a new home. Now is the time to talk to them about the price range, the needs/wants for your new home, and even start seeing some houses.
Your realtor will also walk you through the escrow process which is a topic so detailed we will have to do a future post on it. For now please refer to this pamphlet made by the California Bureau of Real Estate which goes into incredible detail into all the intricacies and wonders that is the escrow process.
6) Getting your offer accepted
With the number of houses being historically low and the demand for houses skyrocketing, as a buyer, you can expect a lot of competition (anywhere between 1-25 other offers).
While your realtor will always try to get you the perfect home at the lowest price, you need to be prepared to be competitive or you will risk losing your home to someone else. Your realtor will be able to give you solutions catered to your situation and they will walk you through on which to use and at what time.
There’s more…
This article is already getting a little lengthy so in the future we will go through the final steps before the home buying process is over. In the meantime, if you have any questions please feel free to drop them below, give us a call at (619) 544-6444 and check out our Instagram, Twitter, and Facebook for daily mortgage tips.
Special Thanks
We would like to thank our friend John Selby for taking the time to answer our questions. His continuous dedication to inform and care for his customers is evident in all he does. You can learn more about him by visiting his Facebook, Youtube, Instagram and Linkedin