Katy Perry’s song comes to my head when I hear the word, California. I’m sure her song is echoing in yours too. Pretty much the same feeling when you buy a property, particularly a house in California. The sunshine state offers not only its beautiful weather and summer to dos, but the property acquisition in California isn’t like formulating a calculus equation.
Among the fifty states in America, the path to home ownership is broken down into easy and simple steps. To begin with, you must be able to have an agent. Yes, every buyer should have an agent who will represent you and look towards your best interest. This being said, the agent’s task may include you signing an agreement between both parties of duly responsible deliverables from both ends. Finding that agent may take time, as you will have to schedule the interviewing of an agent yourself, unless referred or recommended by someone you know who has dealt with home buying in California before you. Once you have settled for a person, you may now have to check the neighborhood of the area you wish to purchase a home from and it would be advisable to also get to speak with a neighborhood specialist.
Being in the US, a credit report may be essential in getting qualified or pre-approved for a mortgage or a loan. Now that you have an agent, you may seek for your agent’s help in getting referrals for a mortgage broker but not eliminating the idea of getting rates from banks or credit unions. Make sure you are amenable to settle for payments that will suit or is tailored fit for your earnings.
Looking at homes for sale is your next stop. This is the most exciting part of home buying in California. The vast choices you have in picking out that perfect home for you requires research and leg work for your agent. Your agent should be able to consider homes on the market, open house events and even print out of comparable sales in your targeted neighborhood.
Once you have selected your home, you may now want to write a purchase offer based on the amount you feel a seller will accept or counter. You will also be negotiating and counter offering during the process of writing or corresponding with the market. When you’ve decided to go thru with an offer, has it been accepted make sure you make an earnest money deposit. Then you will open escrow or order title if the listing agent hasn’t done so. When you have your escrow’s name, phone number and file number, submit these to your lender and insurance agent.
Once you have ordered your appraisal which will require a down payment, discuss options with your agent and as a copy of the appraisal. After which you will now comply with lender requirements, approve seller disclosures and order homeowner’s insurance policy. When you have finally conducted home inspection, you may issue request for repair unless it is free of these, which is highly doubtful as no house is perfect.
Remove contingencies in your loan if it is firm and has an acceptable appraisal. By default, the state of California contracts gives you 17 days to remove any contingencies. Then do the final walk-through. Do not ignore this as you may find a serious issue and failure to address it will cause you bigger problems in the future.
Sign your loan and escrow documents, but depending whether you are in the southern or northern part of California. Deposit funds or certified check payable to escrow, close escrow now with your property deed, seller’s reconvenance and deed of trust.