Buyer's Information
I Want to Buy... Where Do I Start?
Congratulations, you have now decided to buy a home in the San Diego area. There are a number of things to think of as well as do's and dont's! Here is a quick overview:
- Did you know that Buyer Agency is already factored in the price of homes? Home Sellers pay the buyers agent commission, so there is no cost to you. Homes Sellers are represented by an agent whose job is to get the most money and best terms for their client. As a Buyer Agent, it is my job to represent Buyers and their interests only.
In new homes sales, Builders are represented by the Sales Reps who work for them. New Home contracts represent the Builder's interest, not the Buyer/consumer. When you go to a Builder on your own, the only party who saves money is the Builder, not you. You don't get a break because you are on your own. Again, my job is to protect your interests. Click here to utilize my services to find your next home.
- Talk to a Lender to determine what you can qualify for and what you feel comfortable with. As you are seeking information, do not let more than one lender run your credit and have them send you that report so that you can give it to other lenders you may contact. Too many credit checks could affect your credit score negatively. If you don't know where to start, I will be happy to provide you with a list of lenders that I have compiled, based on the recommendation of past clients.
- Do not purchase any big ticket items (like a car) just before purchasing a home. This could affect your ratios and affect your ability to get a loan.
- When you have reached the point where you feel comfortable with a Lender and the programs they have to offer, you should go ahead and get a pre-approval. Make sure you get a Good Faith Estimate from the Lender. It will give you an idea of what the Lender charges in addition to the normal closing costs. It will also give you an idea of what your payments might be. Ask the Lender to run different scenarios, based on your particular situation and needs.
Note: You should calculate your closing costs based on approximately 2.5% of your loan amount. This calculation includes pre-paids (taxes, insurance, interest...) but excludes points (points are what the lender charges to obtain a given interest rate and 1 point is equal to 1% of the loan amount). These closing costs will come in addition to your down payment, should you have one. Your down payment will be determined by the loan program you chose, but a down-payment is not a requirement to getting a house. Many people finance a home these days without a down-payment. As a general rule, I do not meddle in my clients' finances. I feel it is a personal matter between you and your lender. All I need to have is your Lender Approval Letter and I need to know how much you qualify for or if you want to spend less than what you qualify for. However, I like to review the good faith estimate with you.
- Now that your financing is set, you need to determine what kind of home you envision and where you would like to be. If you are not sure, I can give you suggestions of where to look according to your price range, type of house and other criteria you may have. If you have children and you are new to the area, I would recommend that once you have identified neighborhoods, you visit the schools to see if they correspond to what you want. You can also find a lot of preliminary information under area information on this web site.
- Next, you should make a list of what you "must have" and "would like" in a house, keeping in mind that most homes will require a compromise. When we start looking, don't hesitate to tell me what you like or dislike about a particular house, because it helps me narrow down the properties that may fit your needs.