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6 Steps To Buying A Home In San Diego
June 18th, 2007 categories: Buying, Real Estate News
So you’re thinking about buying a home in San Diego, but you have no idea what to do next… good! Now this blog isn’t going to be about why right now is a great time to buy, or how interest rates keep going up (making buyers pay thousands more on their mortgage), or how renting is a waste of money – rather, I’m just going to outline and define the buying process so that when the time comes and you say, “Denny, find me a house,” you’ll be prepared for what’s to come.
Buying a home in San Diego doesn’t have to be difficult or scary, but since most people buy homes about as often as they stick to their New Year’s resolutions, it can be overwhelming. Here are some of the basic steps:
Step One – Don’t Do Anything (0 minutes)
That’s right….don’t do anything….out of the norm. Don’t quit your job, don’t move, don’t buy a car. You don’t want to do anything that will, or might, negatively affect your FICO. Ok, so step one’s easy. Keep going!
Step Two – Talk to a Lender (30–60 minutes)
Why should you talk to a lender when you’re not even sure you want to buy a home? You should because 9 out of 10 times, financing is the most difficult part of a transaction. Consulting with a mortgage broker will provide you with a few things. For one, you’ll get your credit score(also know as your FICO) checked. This way you will find out if anyone aside from you has credit cards in your name and has been buying fishing rods in Idaho on eBay. In addition to this, you’ll be able to work on fixing your credit if your FICO isn’t where you want it (usually a FICO of 700 or higher is ideal). Talking to a lender will also help you and your realtor (Me) search for houses that are in your price range. You don’t want to start looking at penthouses if you’re only comfortable buying a studio. This will also let you review your finances in general and help you decide whether or not you should buy that new car now, or after you buy your house. The last part of step two, is to get a pre-approval letter from your lender. This basically states that you’ve spoken to a lender and based on your current FICO and financial situation, you’re capable of buying a home within a specified price. This does not mean you have a loan – it just shows that you’re doing what a potential home buyer should be doing and in the event you decide to go forward, I can present this to the seller, making your offer even stronger.
Step Three – Make a List (some minutes)
Now that you have an idea of what you can/want to afford, figure out what’s important to you in a home. 
Is it the view? Do you need a yard? Do you have to have a single story home? What about school districts? Also, be sure to differentiate between the NEEDS and the WANTS. The more you know about the home you want, the better I can do my job and only show you the homes that fit what you’re looking for. This way, you won’t have to wander into 20 open houses, hoping that this one has the right number of bedrooms and doesn’t backup into a main road.
Also, if you’re buying a house with someone else, or other people will be living with you, make sure you get their input and figure out how to all be on the same page. And, if you’re going in on the house with your girlfriend, or best friend, make sure you’ve thought this out and have an agreement, in writing, that covers EVERYTHING possible. What happens if you decide one of you wants to move? What if your job relocates you? What if one of you wants to sell? Are you just splitting costs, or are you basing payments off of the room size? My point is, you never know what’s for sure and what might happen. By signing a contract, this will save you a lot of stress down the road, if anything changes.
Step Four – Review your Situation (10 minutes)
At this point, you should have an idea of whether or not you’re looking to purchase a home. If you are, you need to consider what your current living situation is. Do you already own a home? Do you need, or want, to sell it before you buy another? The good news is that if the answer is yes, I can take care of everything for you. The bad news is that this will take sometime. Either way, we can discuss what the best plan is for you and your specific needs.
If you don’t need to sell, or are renting, what are your lease terms? Do you pay rent month-to-month? When is your lease up? What will it cost you to break it? Often times, landlords will waive the penalty, assuming you can find a replacement, or give them ample notice. Again, I can help you with this.
Step Five – Pick your Neighborhood (some more minutes)
Now that you’ve come this far, the next step is to figure out where you want to buy your home. For some of you, this will be the easiest step and for others, you might not know the difference between Downtown and El Cajon. Luckily for you, I do and based on the work you did in Steps 2 and 3, I’ll be able to guide you to the appropriate areas.
Here are a few more things to consider when deciding where you want to live:
- Where do you work and how’s the commute?
- What school district will your kids be in?
- What kind of growth/change will there be in that area?
- What’s the noise like there?
- Do you care about paying a Mello-Roos tax?
- How long do you plan on living there?
Keep in mind, you don’t have to have everything figured out, but at least have an idea of what you’re looking for.
Step Six – Find a Home (? minutes)
You’ve done all the work so far, so now it’s my turn. After having spoken to you, I should have a good idea of what you’re looking for. Since I have access to every home for sale in San Diego county, I can show you anything and everything you want. Once you’re ready to move forward, I’ll follow your specific market on a daily basis, checking on new listings, price changes and upcoming listings. I do this via the Multiple Listing Service(MLS), caravan(essentially open houses for realtors), talking to other agents in the area and when appropriate, I contact the home owners directly to see if they’re thinking about moving.
Once I’ve found some homes that I think you’d like, I’ll email them to you so you can look at the pictures, the virtual tour and map out where the house is. As you filter through the homes, we’ll decide on which ones you want to go and see and then go check them out. It usually takes a few outings before we find 2 or 3 homes you really like, but it depends on how well you’ve prepared your want and needs list.
The next step is to get an offer accepted and go to escrow. You can read more about this by clicking here.
