San Diego Mortgage and Home Buying Tips
If you need tips and advice on San Diego home loans and home buying then you've come to the right place!
Buying a Home in San Diego - 10 Basic Steps
by Brandon Cornett
Are you planning to buy real estate in San Diego? A first home, perhaps? If so, it helps to have a good understanding of the home buying process. By understanding the basic steps in the process, your San Diego home-buying experience will be much smoother.
In reality, the home buying process differs from one San Diego home buyer to the next. But there are certain steps that most buyers go through. Here ten of those basic steps to buying a home in San Diego.
1. Examine Your Finances
When buying San Diego real estate, one of your first steps should be a good review of your financial situation. You can rest assured that a San Diego mortgage lender will examine your finances under a “microscope,” so you should do the same.
2. Choose a Mortgage Type
In most cases, the next step to buying San Diego real estate is to choose a type of mortgage loan. This requires careful consideration, because your mortgage will be with you for some time (unless you sell the home or refinance). To learn about the pros and cons of the various types of mortgages, refer to the resources below.
3. Get Pre-Approved for a Loan
Pre-approval will help you a lot during your San Diego home buying process. For one thing, pre-approval shows sellers that you’re serious about (and capable of) buying their San Diego home. This can make a big difference in whether or not they accept your offer. In a hot real estate market like San Diego, you want sellers to take you seriousl.
4. Find a San Diego Real Estate Agent
Once you have a good grasp on your financial situation, and you’ve been pre-approved for a loan, it’s a good idea to start looking for a San Diego real estate agent. The home buying process can move pretty fast, espeically in a hot market like San Diego. There’s also a lot at stake financially … especially in a real estate market like San Diego. By having a skilled real estate agent on your side, you can avoid making costly home-buying mistakes.
5. Choose a San Diego Neighborhood
One of the best things about San Diego County is its diversity. You can live by the beach, near the mountains, near the desert, near Coronado Island … you name it. San Diego has a lot of great neighborhoods, so you’re sure to find the one that’s right for you. Which neighborhood you choose is almost as important as which home you choose. Neighborhoods have a direct influence on quality of life, social and recreational satisfaction, property values, commute time, educational opportunities and more.
6. Start House Hunting
Let’s pause to review our San Diego home buying steps thus far. You have your finances in order, you’ve been pre-approved for a mortgage, you’ve found a good San Diego real estate agent, and you’ve narrowed your house hunting to a few select neighborhoods. Now you can move on to one of the most exciting steps in the home buying process — house hunting!
7. Make an Offer
When you find a San Diego home that you like, you’ll need to make an offer on that home. Work closely with your agent on this step. Determine a reasonable amount to offer based on comparable sales in the area. Most importantly, don’t ever accept an asking price as being set in stone. It’s called an “asking price” for good reason. In real estate, everything is negotiable.
8. Get a Home Appraisal
There’s really not much you need to do for this next home buying step. Your mortgage lender will probably coordinate the appraisal. Basically, all you can do is stand by and watch (and hope the home appraises for the price you’ve agreed to pay).
9. Get a Home Inspection
A home inspection is a critical part of the home buying process, so it should not be skipped. A good home inspection will give you the peace of mind of knowing what condition the home is truly in.
10. Settlement / Closing
The period in between offer acceptance and the final transfer of property is known as escrow. During this period, you might have additional inspections on your San Diego home (for radon, pests, etc.). You’ll probably have some more paperwork to do as well. It all leads up to closing day, when you officially take ownership of your new San Diego real estate!
We hope this article helps you when purchasing real estate in San Diego. Here’s to an enjoyable home-buying process! Good luck.
Related article: Home Buyer’s Guide to San Diego