When you want to buy a home in the San Francisco Bay area and you are ready to make the dream of owning your own home a reality there are a few things you should know.
The process is not always easy and securing a loan from a bank or broker is much more difficult than it was in years past.
Below is a list of the steps you need to take in order to really find your dream home and make the process happen.
You need to put together a power team and take the necessary action in order to close in today’s market.
First, get a copy of your credit report
Work on improving it.
Your credit report is an important tool used in getting a loan from the bank. Usually a loan officer can get a good copy for you for a small fee of about $15.
Never pull a credit report from places like freecreditreport.com If you want a snapshot of your credit without paying a fee you are allowed one free copy every year at http://AnnualCreditReport.com
Second, Talk to a Loan Officer or Mortgage Broker
They will have you fill out an application and a Pre-Qual Letter. Never pay an application fee to a loan officer bank or broker. You should be able to get this part of the process done for free.
A good Loan Officer should be able to show your your options and find a good affordable price range for you and your family.
In the video below I go over some of the top lending questions people ask when they are getting started.
Third, find a Local Bay Area Realtor
When you look for a Realtor in the Bay Area you should ask someone you know and trust who has been through the process for a referral to a good local Professional.
Realtors can help you find the best piece of real estate to fit your needs.They are also beneficial because they know what is available on the market and have friends within the industry. The seller pays the commission to your Realtor, so it costs you nothing to have one.
In theory, a Realtor should help you get the best price. Keep in mind that the more you pay for the house, the more the Realtor makes in commission. Choose one wisely and ask opinions from friends and family before settling on one because you want one that you can trust.
Fourth, determine the major features you are looking for in a Bay Area home
This would include what part of town you want to live in, what style of house you want, and how much the bank is willing to loan you.
Then, you or your Realtor should compile a list of houses that match your criteria.After you compile the list you need to go through the homes. Take the time to visit each home and have a walk-through with the owner. Ask any questions you have.
Fifth, when you choose a Bay Area house get the disclosures from the seller
The disclosure is a list of any problems the house has that the seller is aware of. If after seeing the disclosure you still are interested in the house, you need to determine how much money you are willing to offer on the home.
Get a list of comparable homes that have sold recently in the same area so you can get an idea of how much the house is really worth. Keep in mind that it is rare to accept the original price given by the seller usually you’ll offer slightly less than they are asking.
Sixth, have the house professionally inspected.
You generally have to pay for this and it will cost $350 or so.If the inspection reveals problems not listed on the disclosure you can try to get the seller to lower the price or fix the problems before the sale. If it is not worth it to you, walk away from the deal if your contract allows.
Seventh, make an offer on the home
Making an offer is not just an exchange of words, it means signing a contract. If the seller accepts the offer then they will be willing to sign too.At this point you’re generally obligated to buy the house and the seller is generally obligated to sell, though depending on the wording of the contract you and the seller have the right to walk away from the deal under certain circumstances.
Eighth, the bank will have the house appraised.
This process will ensure that the property is worth what you’re paying for it.
Ninth, get homeowners insurance.
It is highly recommended that you price shop, in other words get quotes from several different businesses. The cost of the insurance will be added to your closing costs.
Tenth, close on the home
Meet with the title company or an attorney and officially sign the paperwork.
There are many cities that have rapidly been selling real estate. One of these is San Francisco Bay Area and surrounding cities.
As you follow these basic steps you can make the process of buying a home easy and buy the home of your dreams.
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Until Next time Here is to your success! Jason Wheeler