7 Things You Need to Do When Buying a Home

Updated: Oct 9, 2020

1. Shop around for lender options!

It is a myth that shopping around will hurt your credit. You have 45 days from the

first credit pull to shop around and only one credit inquiry will show up on your

report. It is important to shop around to make sure you are receiving the best rate.

Also take a peek at my blog on mortgage points to understand how those are

incorporated into the loan and how they affect interest rates.

2. Get Preapproved!

This is the first and most important step in the home buying experience. It will

allow you to know how much you qualify for and will help you zone in on what

properties to look at!

3. Factor in Homeowner Expenses

Make sure you are taking into account property taxes, homeowner's insurance,

monthly HOA costs. Redfin does a great job incorporating these payments to

show you your true monthly cost of the home.

4. Do not stretch yourself too thin

You may find yourself being preapproved for a nice purchase price. However,

make sure you are not going to find yourself "house-poor" and you will be able to

continue your additional expenses without any issues and continue with your

savings goals.

5. Understand the fees incorporated in a loan.

There are a lot of fees included in obtaining a loan. Below is an example of

some of the fees you may incur:

- Keep in mind some fees may not apply (HOA Cert and HOA Master Insurance for

example if property is not in a HOA). Also some fees the lender may be willing to pay

(one example is the appraisal fee). Lastly - some of these fees can be negotiated

upfront in the contract for the seller to pay (title owner's policy and City Tax/County Tax).

6. Make sure to get an INSPECTION!

This seems like a given but it is always important to get a home inspection. This is

something you will need to pay for upfront once you are under contract and in escrow.

You will have an inspection contingency in your contract and this will allow you have an

inspector conduct an independent inspection on the home. Some major things to look

for and ask about:

7. Make sure to check Zoning

Zoning is important especially in CA. Make sure there are no unpermitted structures,

no illegal additions and no fines on the property from the city. Best way to check is to go

directly to the city department/ code enforcement and ask to check records on the

property. New city ordinances have started allowing ADU's (Accessory Dwelling Units) -

if the property you are considering has one, make sure it is considered permitted.

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