Lifecycle of the Home Buying Process

a California Realtor since 2011

Now is the time to buy because:

  • Save money on your federal and state income taxes (mortgage interest and some taxes are deductible up to certain limits)
  • Gain equity as real estate values increase
  • Stable housing costs resulting from home purchase and fixed-rate loans

Are you ready to buy?

  • Do you pay your bills on time?
  • Do you have low or medium debt?
  • Do you have the down payment (about 3 – 5% of purchase price)?
  • Do you have the closing cost (about 1-3% of purchase price)?
  • Can you afford the monthly mortgage?

Types of Loans:

  • FHA: 3.5% down; lower FICO score; mortgage insurance
  • Conventional:  5%, 10% or 20% down; no mortgage insurance
  • VA:  0% down; no mortgage insurance

Why should I be pre-approved?

  • You know what you can afford before you begin shopping
  • Shows sellers you are serious about buying
  • You’ll be able to immediately make an offer when you find the ideal property (without delays)

You will need:

  • Last 2 years Federal Tax Returns or 1099
  • Last 2 months paystubs
  • Last 2 months bank account statements

Steps to purchasing a home

  1. Get Pre-approved by a reputable lender
  2. Work with a reputable realtor
  3. Decide on type of property i.e. condo or single family residence or townhome or duplex
  4. Make an Offer and obtain an Acceptance

Key deadlines within 17 days of opening escrow

Open Escrow

  1. Make initial deposit (which is about 1% of purchase price) into Escrow
  2. Complete Physical Inspection
  3. Appraisal
  4. Loan approval (show proof of down payment)
  5. Termite inspection
  6. Obtain Preliminary Title Report
  7. Obtain HOA documents, if applicable

Close Escrow

  1. Submit balance due for down payment
  2. Submit balance due for closing costs
  3. Sign and notarize loan documents
  4. Lender funds the loan
  5. Record Title with the City of San Diego
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