The Home Buying Process
The very first thing you need to do before your home search is to get pre-approved through a Mortgage Lender. No seller will even consider your offer without a pre-approval letter nor will most real estate professionals show homes without it. We work directly with several good direct lenders that can help you through the process. Here are some of the items most commonly needed for pre-approval:
- Name, address and Date of Birth
- Social Security Card
- Pay stubs for the last 30 days
- W-2's for the previous two years
- Your Federal Tax Returns for the last two years
- Bank statements for the most recent two months
Once you know what you are approved for, then you can begin your serious search. A lot of times you will get qualified for an amount higher than you can really afford, so when searching for your home you need to have a comfortable payment in mind and don’t forget monthly maintenance expenses.
When choosing your monthly payment range you need to consider not only the principal and interest payment, but also homeowners (hazard) insurance as well as property taxes. Property taxes can fluxuate a great deal in the Murrieta and Temecula area depending on the neighborhood. Many neighborhoods have a Mello Roos tax, which are assessments added to your standard tax rate that can add in excess of $300 a month to your payment on top of the standard taxes in some cases.
You should come up with a wish list of items that you need in your new home and items that you want. What area do you want to live in, how many bedrooms and bathrooms do you need, one story versus two story, schools, etc. Knowing what you want and need can streamline the buying process and help save you a lot of time.
Now you get to go look at houses, the fun part! Buying your first home is very exciting and scary at the same time for most first time buyers. Let me help take the fear out of the process and make it a fun, exciting experience. The feelings and pride of getting the keys to your very own home is hard to describe. Stop paying rent and buy your first home today! With interest rates at all time lows and home prices still very affordable, you can in most cases have a lower payment owning your home than what you’re paying in rent, not to mention the tremendous tax savings every year.
Please give us a call, text or email and we will be happy to answer your questions and help you through the process.
Why Use A Buyer’s Agent?
Buying or selling real estate is a complicated process and it can be confusing to a novice. This is where real estate agents prove helpful to both buyers and sellers. Seller’s agents have existed for a long time now, but with the increasing complexity of the real estate market and potential for making a large financial mistake, using a buyer’s agent is a must. As the term implies, a ‘buyer’s agent’ works on behalf of the person who is buying a home, property, or any kind of real estate and has a fiduciary duty to them. The question is often asked how much using a buyer’s agent will cost and the answer is zero. As part of a listing agreement, the seller of the property pays both the listing agent’s commission as well as the commission for the buyer’s agent. You get the expertise and experience of a local expert at no cost to you.
What does a Buyer’s Agent do?
The responsibility of a buyer’s agent is the buyer. Going directly to the listing agent of a property can create a conflict of interest although it is legal to represent the buyer and the seller in the same transaction. The listing agent’s first priority is the seller and getting the best price for the buyer will be secondary despite anyones best efforts. Think of it this way, if you’re getting sued, would you go to court and use the same attorney that the plaintiff is suing you with?
A buyer’s agent will guide you through the entire process, help you with the pre-approval process, arrange showings of selected properties, negotiate terms, draw up the contracts for you as well as consult you along the way. Once you open escrow on a property, your agent will walk you through until the end scheduling inspections, gathering the required reports and disclosures from the seller and making sure everything transpires smoothly and on time. He or she will work to obtain the best possible deal for the buyer and is obligated to disclose to the buyer any information about the property that they may come across. Thus, the primary responsibilities of a buyer’s agent are: