10 Steps Towards Becoming a Homeowner
Save
For down payment and closing costs
Save up for the down payment and closing costs. There are loans available that allow buyers to put as little as 3% of the purchase price down, or 0% with a VA or USDA loan.
Closing costs will vary depending on the escrow company but typically range from 2%-5% of the purchase price.
Credit Score
Know your score
Your credit score is a numeric representation of your credit history and ability to pay back debts historically.
Different home loans will have different credit score requirements that qualify you for different loan types, loan amounts, and interest rates. The better your credit score, the more options you qualify for.
REALTOR®️
Find a REALTOR®️
With an adequate credit score and sufficient savings for a down payment and closing costs, contact a local REALTOR®️ who can guide you through the process of buying a home.
Trust me to be your guide.
Loan Pre-Approval
Get approved for a home loan
Connect with lenders, understand your options, and get pre-approved for a loan. A good lender relationship is key to a successful real estate transaction. The best lenders give tailored guidance on loan options, stay involved throughout your home search and closing process, and recommend specific programs that can offer benefits and assistance to you as a buyer.
I refer my clients to fully vetted lending partners who excel in each of these areas. I always recommend you shop around, so get a few quotes before you commit.
Home Shopping
Find the "ONE"
Make a list of what you want vs what you need in your new home. Also include what to avoid at all costs. Settle on a budget and identify acceptable neighborhoods. Tour as many homes as you can providing feedback to your REALTOR®️ on what you like vs what you don't like. Keep going until you find the "one".
Offer
Making your offer stand out
Greater Los Angeles is a competitive real estate market. Leverage the expertise of a local REALTOR®️ who understands the market dynamics and can strategize with you on the best price, terms and details to submit on your offer. Ultimately, these factors will make or break whether your offer gets accepted or not.
Initial Deposit
Make initial deposit to escrow
Once your offer has been accepted, you have 3 days to deliver the initial deposit to the Escrow company specified in the contract. If your offer includes terms for an increased deposit amount, you must deliver the increased deposit amount within the agreed upon timeframe. These deposits, also referred to as Earnest Money Deposits, represents your good faith to buy the home and are refundable during the inspection period, and at closing are applied to your down payment and closing costs.
Inspection & Appraisal
Get a home inspection & appraisal
Once your offer has been accepted, the inspection period begins. It's important to get a home inspection to ensure you aren't missing any hidden issues, to request repairs from the seller(s), and to use the findings to negotiate on price and terms.
You will also begin reviewing all required disclosures with your REALTOR®️.
Close
Contingencies and financing
Work with your REALTOR®️ to remove all relevant contingencies that remain. Unless they are waived, the primary contingencies for a buyer are the inspection, appraisal, and loan contingencies. There are also other types of contingencies so check with your REALTOR®️ to ensure that all relevant contingencies have been removed.
Once your loan is approved, your lender will schedule a closing date. You must sign closing documents a few days before the set closing date when using a lender. On the scheduled closing date, escrow will verify all documents are completed and funds are in, and then title will be notified to record the sale. Once recorded, the sale is closed!
Move In
Get the keys!
Congratulations! You're a homeowner!
Once you get your keys, you can move in and get on with life. Whatever comes next as a homeowner, a great REALTOR®️ continues to be of service. Let me help you get there!