Road Map To Buying

Chicken or the Egg?The first step to buying a home should be to get a loan pre-approval letter from a reputable lender, unless you’re making an all cash purchase. You should do this for two reasons. First, you need to know what you’re able to finance. The last thing you want to do is look at homes for $700,000 when you can only qualify to borrow $500,000. That is just giving you false expectations and wastes everyone’s precious time. Secondly, we will need to submit the loan pre-approval with any offers you make on homes.

Time to Shop for a Home! – After you’ve received the loan pre-approval letter it’s time to decide what type of home you want to buy. The pre-approval will tell us what you can afford, but what type of home do you want? Do you only want to look at Single Family Residences? Are you interested in Condominiums? How many bedrooms would you like? Let us know the specifics behind what your looking for to narrow down the search. After we know your needs, tell us your wants. What other criteria would you like to add to your home search?

Touring Properties – Okay we now have a list of properties you like and it’s time to see them in person. Your realtor will set up the appointments and plan your route. Remember that some homes might still have the current owners living in them. Most of the time the owners will leave the home for previews, if not make sure to be courteous and respectful of they’re home and belongings.

Making an Offer – So you’ve fallen in love with a property we’ve previewed and you’re ready to make an offer. So what goes into making an offer?

1) Residential Purchase Agreement
2) Loan Pre-Approval Letter or Verification of Funds
3) Earnest Money Deposit

The Residential Purchase Agreement (RPA) – A legally binding document for the purchase of real property in the state of California. The Loan pre-approval letter proves to the seller that you can get financing for your purposed purchase. Earnest Money Deposit – This is a copy of a check made out to Beach Cities Real Estate for the initial down payment of the property. This is needed to open Escrow (I don’t need an actual check, just a copy).

Going to Escrow – Escrow is a legal arrangement whereby a neutral third party, called the escrow agent, holds an asset during the period in which the deal is being finalized by the other two parties. You will receive instructions from the escrow company on your duties and responsibilities throughout the process. During escrow you will have the time to perform inspections, sign disclosures, and clear contingencies. Your escrow officer as well as realtor will keep you updated throughout your escrow.

Transfer of Possession – Upon close of escrow the property you’re purchasing will be transferred to you and recorded into public tax records. Congratulations, you now own a home!