San Diego Home Buying
You’ve made the decision to buy a San Diego home; this is an exciting and huge step! Whether it’s your first home, an investment property or your vacation dream home, being fully prepared to buy will make your home search simpler and you’ll experience fewer surprises when you make an offer.
1. Your timeline. Do you have a lease? When is it up? Will you need to find a home quickly or can you take as many weeks or even months as it takes? It’s important that you talk to your San Diego agent about the current marketplace. You will need to know on average how long is it taking to find your house in your desired location. And keep in mind that when you do find a home and have a contract with the seller, your San Diego real estate purchase could take 30-45 days to complete.
2. Check your credit. Know your FICO score; have a credit report done. Are there any red flags? Have you paid your bills on time? It may take some time to correct problems, so be prepared.
3. Obtain a pre-approval. Your San Diego REALTOR® can introduce you to lenders that experience shows have done a good job. The lender can then give you the amount that you will qualify to borrow and this will help to guide your San Diego house search. It’s important that you know the “numbers” and you feel comfortable with the monthly payment. Remember, you could be taking on a monthly payment significantly larger than you currently pay for rent or your current mortgage. Again, be very sure you feel comfortable with the monthly payment, not just the total amount of the loan.
4. Draft your must have, nice to have and negotiable list. Most of us have a general idea of the kind of home we would love to own. Do you need to be close to a particular San Diego area school or community services? What are your favorite San Diego area neighborhoods? I recommend that prior to beginning your search you take the time to make a detailed list of both what you do want, and what you don’t want. This will help you and your real estate agent focus in on just the right San Diego homes for you.
5. The costs. Your San Diego agent and your lender should provide these numbers to you. Prior to your purchase, you will be paying for inspections, it is important that you understand the true condition of the San Diego home that you are about to buy. Also, you should be completely informed of your down payment amount, as well as, closing costs. The closing costs that you will be expected to pay include title, escrow and lender processes, pro‐rated taxes, appraisal. These are the basic expenses, but there may be other costs as well. Your San Diego real estate agent can provide you with a California Association of REALTORS Estimated Buyers Closing Cost document when you are preparing to make your offer to purchase.
Remember, prior to purchasing your new San Diego home, meet with your REALTOR® and your lender – both can give you more information on your specific circumstances and help you be the best informed and ready to a successful San Diego home purchase.