A home is probably the biggest financial investment you’ll make in your life. Before you get started, do some homework. This handy Buyer’s Guide will show you some things to keep in mind as you’re hunting for that home of your dreams.

1. Determine How Much You Can Afford

How much house you can afford is largely dependent on how large a mortgage – basically, a home loan -- you can handle. Start your research by using the simple mortgage calculators we have on our website to see whether you can afford to pay the monthly mortgage on the kinds of houses you have in mind.

We strongly recommend that you speak with a mortgage lender before you start looking for a home. This is called getting pre-qualified for a loan; it will tell you exactly how much you can afford and help your home search be more efficient and successful. If you would like, we can provide lenders for you to contact.

But, remember that owning a home involves more than a monthly mortgage. You’ll also have to consider money you’ll need to have at hand when you make an offer, when you close on a home and on a monthly basis after the home is yours.

Payments you may have to make when you submit an offer and at closing include:

• Earnest money, usually 1% to 3% of the cost of the house, which you pay as a deposit on the house when you submit your offer. It’s your proof that you’re a serious buyer
• The down payment, usually 10% to 20% of the cost of the house, which you must pay at closing
• Mortgage insurance, paid by borrowers making a down payment of less than 20%
• Closing costs, usually approximately 1% of the cost of the house, to pay for various costs occured through the escow period
  

  Don’t forget the day-to-day expenses you may incur once you own that home. This includes:

• Utilities
• Homeowner or condo association dues
• Property taxes
• City or County taxes

• Is there enough room for you to grow in?
• Is the house structurally sound?
• Is the house in move-in condition or will it need work?
• Is it close enough to everyday needs, such as grocery stores, schools, work?
• Will you feel safe here?
• Do the appliances that are part of the sale work?
• Is the yard right for your needs?
• Do you like the floor plan?
• Is there enough storage?
• Will you be happy in this house in winter, summer, spring, fall?

3. Use a Real Estate Professional...That's were we come in...

While you’re not required to use a real estate professional, it is a good idea. We have access to a network of contacts and can draw from extensive market knowledge to help pinpoint the right house for you quickly.

As professionals, we can help you structure your deal to save you money, give you contacts who can explain the advantages and disadvantages of different types of mortgages and guide you through the escrow process to make it as smooth as possible for you.

4. Research Different Mortgages

There are a variety of mortgage types available today, each with advantages and disadvantages depending on how long you plan to live in the home, the financial marketplace and your income potential, among other things.

A fixed-rate mortgage is the most common. In a fixed-rate mortgage, your interest rate and payment stay the same for the life of the loan.

An adjustable-rate mortgage usually starts out at lower interest rates and lower monthly payments than fixed-rate mortgages, but your rate and monthly payments may rise and fall based on a financial index.

There are also several government mortgage programs available, including FHA mortgages, which are designed to help people who might not otherwise qualify for a loan.

You may also have a choice in loan terms. There are options in addition to the typical 30-year loans and 15-year loans.

It’s best to talk to us about your best mortgage option.  We may refer you to a Mortgage Broker that can discuss current market financing packages and provide a FREE Loan Qualification.

5. Make an Offer

When you’ve found a house you really want, it’s time to make the offer. How much you offer may depend on a number of factors:

• Is the asking price fair? Here’s where the legwork you put in while shopping for a home pays off. Decide whether this house is priced right or out of line in the current marketplace.
• Is the house in good condition? Is this house in move-in condition or will it need a lot of work? Take any costs of improvement into consideration when deciding your offer price.
• Has it been on the market long? Usually the longer a house has been on the market, the more likely it is the owner would accept a lower offer. Or maybe it’s just overpriced for the market.
• Is it a seller’s or buyer’s market? If the houses you’re interested in are being bought as soon as they’re listed, that means you’ve got a lot of competition from other buyers; offer accordingly. If houses aren’t selling fast, you may have more leverage in negotiating a lower price.
  Once you’ve determined how much you’d like to offer, work with your real estate professional to submit the proper information. This includes:
• A complete, legal description of the house
• The amount of earnest money you’re paying
• The down payment and financing details
• A proposed move-in date
• The price you’re offering
• A proposed closing date
• The length of time your offer is valid
• Details of the deal

6. Begin Contingency Period

When your offer has been accepted, the contingency period begins. This is the time that allows you and the seller to comply with the required inspections and satisfy any other contingencies of your purchase agreement.

Now is the time to schedule a professional inspection of the property; it is one of the best safeguards you can take before buying. A home inspector should check the electrical system, plumbing and waste disposal, the water heater, insulation and ventilation, water source and quality, foundation, doors, windows, ceilings, walls, floors and roof.

Keep in mind that the inspector isn’t there to tell you whether you’re getting a good deal. He or she is there to give you an educated opinion on whether the house is structurally and mechanically sound. The inspector will give you a summary of what items need attention and the importance of each. We assist you in this process from suggesting a dependable professional inspector,arranging for the inspection and communicating your requests to the sellers.  

7. Buy Homeowner’s Insurance

A paid homeowner’s insurance policy is required at closing. I will help make sure your insurance company and your title officer are working together to put your policy in effect by the close of escrow. But, if you get your insurance agent involved early in your home-buying process, he or she may also help point out ways to help keep your insurance premiums lower.

8. Closing Escrow

As you approach the agreed on close of escrow date, the final paperwork processes will be finalized. Your final loan docs will be prepared (unless there is no loan involved), you sign them with escrow, escrow returns the package to your lender for final approval, the loan is funded and the title company takes the package to the Ventura County Recorder's Office. As a reminder, the agreed on close of escrow date is a "target date" and due to the complexity of the process the closing may be delayed past that date. The sale is recorded and you are now the new owner of the property. The keys are turned over to you at the time you agreed upon in the contract and you can move in. Congratulations!

As your agents, we we do as much as possible to keep this process on time, keep your inconvenience to a minimum and keep you informed. 

Feel free to contact us at any time if we can be of any service!