Home Buying Process

The home buying process can be broken down into a series of simple steps. Below is a list of tose stepswhich can be used as you move forward buying a home. If you’ve heard it once, you’ve heard it a hundred timesBe prepared! Buying a house is a huge decision, probably the largest financial investment many people will make. Reading this guide is a good start!

1.)  Figure out what you can  afford.

 Nothing is more disappointing than finding the perfect house and then not getting the financing you need. You can limit this risk by working with a lender up-front to determine what kind of house and financing might be right for you. Reef Point Realty has it’s in house mortgage broker you can use to determine your needs. Homebuyers should look for all the financial help that’s available. Buying a home can require upfront cash – often more than people expect. Federal, state, and local governments, and many local and national non-profits, provide assistance to individuals and families looking to purchase a home (particularly first-time homebuyers). The VA loan is a phenomenal program for former military or active duty military members who are looking for a home with no money down.

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2. )  Be smart, do your research!

Unleash the power of the Internet to learn about neighborhoods, types of homes, prices, schools, shopping, and other information that will help you purchase a home that best meets your needs. A great place to start is www.reefpointrealty.com . It lists, in detail, all of properties located in neighborhoods across San Diego.You can even create a personalized search which lets you be among the first to know when a new property is coming on the market in your area. Become a VIP member and contact one of our team members and we can set up an automatic notification that emails you when a new home matching your criteria comes on the market Once you’ve found a home you like, its time to start making appointments to visit properties.SPACE

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3. )  Pre-Approval

There’s just one more critical step before starting your search: that’s talking to a our mortgage lender and getting a pre-approval for financing. Here’s how it works: Our broker gathers information about your job, assets, income and debts, and then determines how much financing you’re qualified to receive, backed by a pre-approval letter.  Collect your Documents. Gather pay stubs, bank account statements, W-2s, tax returns for the last two years, statements from current loans and credit lines, and names and addresses of your landlords for the past two years – lenders are going to want to see these when you’re working on financing. These steps will get you pre-approved and our broker will provide you with a pre-approval letter.

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  • •This saves time by letting you search for homes within your preapproved, affordable price range.
  • •Having this letter is also critical to showing the seller that you’re a serious and qualified buyer.  Now  find a house and you’re ready to submit an offer.

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 Keep in mind that a loan pre-qualification or pre-approval letter doesn’t mean your loan is approved yet. You’ll still need to apply for a loan once you have an accepted offer on a house.  Why use a mortgage broker instead of a bank?  We will use the airline ticket example to explain this. Using a mortgage broker to find a loan is similar to shopping for an airline ticket using Expedia.com while using a bank is like buying directly from an airline. Expedia has access to all the cheapest flights and rates. A bank, like an airline, can only offer you its rate. Our mortgage broker will find you the very best interest rate which in turn saves you thousands of dollars.

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4. )  Evaulation.

Okay, so you think you’ve found “the perfect home Well, be prepared to act quickly because, while every market is different, many San Diego properties continue to receive multiple offers. We at Reef Point Realty  will work with you to prepare an offer and evaluate many factors before suggesting a suitable amount. Factors to be considered include:

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  • •How long has the home been on the market and what is it’s current condition?
  • •What is the current market like?
  • •When rates are lower, more buyers are apt to make an offer and, possibly, submit higher bids.
  • •Multiple offers can influence the price, often pushing it higher.      
  • •Does the home you want have features you believe may be in strong demand?

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5. )  Making an Offer

A written offer is the basis of any real estate transaction. At Reef Point Realty we include:

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  • •A complete standard purchase contract.
  • •A pre-approval letter
  • •Scanned copy of Earnest Deposit Check.     
  • •Proof of Funds-This shows that your deposit check will clear and ESCROW can begin.

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6.)  Acceptance!

Once a contract has 17-day inspection period is provided, allowing buyers to perform inspections and determine whether the property meets their needs.

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  • •We provide you a qualified professional with over 20 years of experience to inspect the property,
  • •There is a 17-day inspection period which begins on the start date listed on your purchase contract.
  • •If a seller knows of any problems they mustdisclose this information through their real estate agent.

*** Additional repairs to the property may be required, depending on the type of financing,

such as FHA or VA products. When this happens, the lender typically contacts the listing broker to communicate these requirements.***

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7.  CLOSING THE SALE!

Although Reef Point Realty always strives to close on your home as soon as possible, sometimes external parties can delay closing due to certain circumstances. For example, sellers are often required to gain approval from external parties, like a mortgage insurer that insured the original loan. Such delays can vary in length, so keep this in mind.

 The closing will occur when conditions of the contract have been met, which include full loan approval, evidence of clear title, closing on the scheduled date and any other contingencies.  

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Prior to the actual closing date, expect to review fees so that you’ll  understand all terms and conditions of the contract, in addition to the amount of the check that you’ll need to bring to closing. Reef Point Realty will assist you with this process.

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At the closing, the lender “funds” the loan with a cashiers check, draft or wire to the closing agent who disburses funds in exchange for the title to the property. This is the point at which transfe  of ownership occurs: the buyer receives possession of the property.  

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Congratulations, the property is yours!

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Are you ready to buy? Pick of the phone and contact Reef Point Realty and ask about our VIP Buyer program.

858.997.6993

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