Deciding to buy a home is perhaps one of the most important financial decision that anyone may ever make. And over the long run it may be one of the most financially rewarding as well. Following are the steps you should take to help them make this decision.
1.
Take stock of your future family and career plans and objectives.
. A home purchase generally becomes more viable the longer one remains in the home. Therefore, if your career is not likely require relocation in the near or intermediate future, then home ownership may seem more desirable than renting. Otherwise, you might consider delaying a purchase until your career outlook will less likely require relocation. The size of a possible home purchase depends on the size of your family and any future plans to have more children or care for aging parents. Also consider your needs for a home office or hobby area. If you feel that homeownership is appropriate, be sure to target a home that is an appropriate size for your career and occupational needs.
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2. Identify potential desirable neighborhoods.
Things to consider are; proximity to work or transit options, proximity to family or close friends, proximity to community activities, services, recreation or entertainment, quality and location of schools, and crime statistics.
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3. Run our Rent v Buy calculator.
This estimates the future cash outlays and equity build-up of a set of rental and buying assumptions that are largely under your control. Keep in mind that the results are only estimates and the actual outcomes may significantly differ. Also this calculator is geared toward residential property located in the state of California. But it will provide an estimated strictly financial assessment of the desirability of renting versus buying. To find some estimated property prices please feel free to use our property locator engine. You can check current mortgage rates and terms HERE
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4 Run your credit report from www.myfico.com .
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Your FICO® score will help you determine your credit worthiness. Generally the higher your credit score the easier and cheaper it will be for you to secure a mortgage. A score of 720 or higher is considered highly credit worthy while a score below 500 will likely disqualify you for a mortgage. But bear in mind that items such as income, job stability and other debts will play a role in the lender’s decision making process. In general your total monthly debt load cannot exceed 41% of your gross income.
5. Assess your down payment resources.
Conventional financing may require as much as 10% down, 
FHA financing only requires 3.5%, and VA financing requires 0%. In LA County, FHA and VA loans are available to $620,000 which makes mortgages on many homes quite available. Conventional and FHA financing may also require 1 or more “points” which should be added to your cash needs.
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If you have any questions whatsoever on any of the above items, please feel free to contact us for clarification.
Once you’ve completed these steps, you are ready to decide whether buying is the right decision for you. If this is the case please contact us
Here’s what we’ll do for you.
1. Direct you to one of our lending partners to confidentially pre-qualify for a mortgage.
You have no obligation to use this lender, but pre-qualifying provides you with the utmost confidence that you will be able to afford the home of your choice while you are house hunting and making an offer.
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2. Help you develop the specifications that meet your needs and financial resources.
3. Search the Multiple Listing Service (MLS) for likely candidates based upon your specifications.
4. Arrange for property viewings of the selected property listings.
We normally request a buyer’s agency agreement if more than two days of viewings become necessary to select a home.
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5. Assist you in drawing up an offer to buy the home of your choice
We assist you in developing your cash requirements and then help you negotiate the agreement through to acceptance by you and the seller.
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6. Assist you with understanding all disclosures and inspection reports
Assist you with understanding all disclosures and inspection reports. If necessary you may desire to request an adjustment in the purchase price based upon such disclosures.
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7. Our office’s technical coordinator assures that all documentation is properly and promptly provided to the escrow company.
8. Stay in contact with you continuously through this process so that you are kept informed at all times.
This is especially crucial in short sales situation.
