Whether you are buying your first, second, or an investment home, the process can be time consuming and costly. Allow my expertise in the field to open the door to many opportunities in the real estate market, not available to other Real Estate Professionals, all with minimal effort on your part.
The Home Buying Process (California):
Purchasing a home in California can be a stressful process for both the buyer and seller, bringing a mixture of emotions – excitement, nervousness, and uncertainty. We know, because we have helped hundreds of prospective buyers just like you to purchase a home. The key is to understand
the basic steps in the home buying process. Our site is designed to help you know exactly what to expect. Once you are done reviewing the steps below, Contact Us to get started. With my help, before you know it, you will be holding the keys to your new home!
1) Loan Calculators –Our Loan Calculators are a great place to start when you are considering purchasing a home. These calculators to the right, are designed to help you determine if purchasing a home is a prudent financial decision for you and your family. As a home buyer, you will need to analyze your income vs. your debts. You will need to achieve a debt to income ratio of no more than 43%. Once you are comfortable with your analysis, the following steps will guide you to realizing the dream of home ownership:
2) Get Pre-approved – Before you begin your new home search, you will want to get pre-approved for a Home Loan. In the pre-approval process you will work with one of our Loan Originators to review your income, assets and credit worthiness. A lender will per-qualify you for the proposed loan and determine exactly how much home you can afford. You will receive a pre-approval letter to submit with all purchase contracts known as offers.
3) Select a Real Estate Agent – A real estate agent helps you find a home, negotiate a successful offer and generally represents your interests throughout the real estate sales process. An agent with good knowledge of the area you wish to purchase in is ideal. Your Loan Originator will work closely with you and your agent forming your home buying team. Your Loan Originator will make contact with your agent. Just provide contact information when you make your choice.
4) Make Offers – Your real estate agent will make offers to purchase the properties that meet your requirements. The preapproval letter will convey to the seller of these properties that you are a qualified buyer who is able to perform on the proposed contract. As an added benefit, your lender should be available to call any and all sellers who are unfamiliar with the loan program and processes should they need clarification. Your lender needs to be committed to closing your loan
quickly and in time to meet the needs of both buyers and sellers.
5) Accepted Offers – When you have one of your offers accepted, you will receive a signed purchase agreement from the seller. Your Realtor will immediately contact your Loan Originator and send in the signed contract (purchase agreement) and all counter offers. Upon receipt by your lender, your loan will immediately move into the loan processing and final approval stage. This is where the Escrow Stage begins. To learn more about the Escrow Process, you can download “Surviving the Escrow Process in California” in PDF format by Clicking Here.
6) Loan Processing and Final Approval – Once you have made an offer on a home and the seller accepts it, your loan will go into the “processing and final underwriting” stages. Here, with the help of your real estate agent, you will supply the purchase contract and title company information for the transaction. The lender will order an appraisal and collect all the remaining documents needed. Appraisals should be within 7 days of ordering, and upon receipt, the lender
will underwrite the file to issue a final approval. During this time, your loan originator will work closely with you and your agent to satisfy any final loan conditions.
7) Contingency Period – The contingency period allows you time in contract to collect more information without forfeiting your deposit. The time frame ranges from between 10 to 18 calendar days and is typical in most purchase contracts. During this period, your real estate agent will help you:
o Review and approve the Seller’s Real Estate Transfer Disclosure Statement
o Review and approve the Preliminary Title Report
o Contract for physical inspections
o Order, review, and approve requested or required inspections
8) Homeowners Insurance Coverage – Most home loan properties are required to be insured under Fire & Hazard and Disaster Indemnity coverage. An Insurance specialist will be contacting you to discuss the process and coverages. When the home loan you qualify for does not include required Fire & Hazard (typically for manufactured homes), you will need to secure your own insurance through an agent of your choice and the lender will require evidence of insurance.
9) Document Preparation and Closing – Once your loan is fully approved, we will prepare your loan documents and submit them to the title/escrow company for you to sign. Typically, the escrow officer at the escrow company will provide a Buyer’s Estimated Closing Statement which will itemize your costs and credits and closely estimate total monies due. You will be asked to bring a cashier’s check to the title/escrow company when you go to sign, a few days prior to closing. At your request, your Loan Originator can review the final documents and answer any questions you might have.
10) Signing Documents – The escrow agent will call you when the documents are ready to sign and appointments are available. The signing process requires both the buyer and seller to sign separate packages. The escrow agent should guide you smoothly through this process. You will receive copies of all the documents you sign from the escrow company. You are almost done.
11) Funding – The escrow company will send your signed loan documents, along with any other outstanding loan condition documentation, back to the lender for a final review. Once all documentation is determined as being complete, the lender will overnight a funding check to the escrow company.
12) Close of Escrow – Once the escrow company verifies receipt of the funds, they will arrange for all documents to transfer title to lender or if a Mobile Home the title transferred through HCD.
Escrow is closed! What next?
Now that Escrow is closed the Escrow or Title Company will record title with the county in which the home is located. Once title is recorded your Real Estate Agent can now hand you the keys to your new home. Keep in touch with your Real Estate Agent after all is done. You will find yourself asking questions and just because we are done with the process, does not mean you are on your own. In fact, a good Real Estate Agent will be there for you months, even years after you have settled in your new home.
Schedule a Meeting online with one of our agents using the form below to start the Buying Process today!
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