first time home buyer guide

6 Common Home Buying Questions – Answered!

May 15, 2018 by Danielle Negroni Leave a Comment

Even if you’re not a first-time home buyer, it’s okay to admit that you still have questions about the process of buying a home. No transaction is ever the same and the mechanics can change drastically between transactions, especially if it’s been a few years since you purchased a home in San Diego. Below, I’ve answered six common questions I often receive from home buyers:

1) How Much Home Can I Afford?

Affordability is the question on everyone’s mind as home prices in San Diego continue to rise. It’s easy to feel discouraged and wonder if you can afford to buy anything. The truth is, you may not be able to afford the house you want. Yet. Or, you may be pleasantly surprised! The best way to determine how much you can afford is to meet with a lender to get you pre-qualified. You’ll still need to get pre-approved for a loan before you can buy, but getting pre-qualified will give you an idea of what you can afford for a monthly mortgage payment. Of course, you also need to consider the cost of HOA dues, Mello-Roos fees, and contributions to your emergency fund. Once you have these numbers in mind, you can compare them to home prices in the neighborhoods you’re considering.

But, if you realize you can’t buy the home you want in your dream neighborhood, don’t give up! Give me a call, I’d be happy to give you some other options to consider that might realistically fit your budget.

2) What Should I Offer For a Home?

Before you write an offer on a home, there are many things you should consider. What is the seller’s motivation for selling? How long has the home been on the market? What do the comps show? Is the home listed as-is?

I will help you evaluate each home you want to write on and help you craft a strong offer. But be prepared that as San Diego is in a seller’s market, you’re likely going to need to offer near full price or perhaps a little more to secure your home, especially if it’s turnkey and in a desirable area.

3) How (and When) Do I Set Up Home Inspections?

Once we have your home in escrow, I will help you schedule all necessary inspections and make sure we get the appointments set before we need to remove contingencies. The inspections are your chance to investigate what you’re buying so it is important that you be there for as many as you can so you can meet the inspectors and see what they see.

4) How Quickly Can I Close Escrow?

Most escrows can be closed in 30-45 days. If you’re paying all cash for your property or waiving contingencies, you may be able to close in less. However, you or the seller may need a longer escrow for a variety of reasons. We will negotiate the length of the escrow during the offer process and will find a timeframe that works for both you and the seller.

5) If I Want to Do the Repairs on My New Home Myself, Can I Ask For Concessions?

Yes, you can, though the seller may not be inclined to give them to you. A lot depends on their financial situation and the terms of your loan. The seller may be selling their home as-is because they truly cannot afford to pay for the repairs that are needed to fetch a higher price for the property. Certain repairs may also need to be completed prior to closing escrow in order to fund your loan. The lender will be able to advise on specifics, but most loans require the home to be habitable in order to fund.

6) How Much Should I Budget For Closing Costs?

Your actual closing costs will vary, but plan to budget 2% of the actual purchase price. So if the home you’re purchasing is $500,000 expect to pay around $10,000 and in closing costs. The escrow company will provide you with an estimate once you get into escrow, but in addition to your down payment, make sure you put aside money to pay closing costs – most buyers and sellers each pay their own closing costs so don’t expect the seller to cover this for you!

If you still have questions about the home buying process, please don’t hesitate to reach out. I don’t believe in stupid questions – I’m here to help you in any way that I can!

18 Things to Evaluate When Touring a Home For Sale

February 25, 2018 by Danielle Negroni

If you’re searching for a new home in San Diego, you might see five homes or fifteen before you find “the one”. While it’s important to consider whether you like the home or not, there are other things you should consider as well. Here are 18 things you should evaluate before moving forward with the purchase:

How’s The Neighborhood?

When you buy, you’re not just getting a house. You’re buying the neighborhood, too. Make sure it’s somewhere you can see yourself living. You should also check if the house you’re touring is the best house on the block…which could be a problem when you go to sell it.

How Many Homes Are For Sale on the Same Street?

Neighborhoods turn over all the time, but if there’s a sign in almost every front yard, it could mean there’s something wrong with this location.

What’s the Parking Situation?

This isn’t such a big deal if you’re buying in a suburban area, but you’re looking to live in an urban area or near the beach, you’ll want to check out the parking situation. Does the home or condo have its own dedicated parking spaces? If so, where are they in relation to the property? If there’s a garage, will your car(s) actually fit in it? How about the driveway? Is it long enough or wide enough to accommodate your vehicles?

Are There Exterior Signs of Neglect?

When you walk up to the home, pay attention to its curb appeal. Are there weeds? Cracks in the driveway or walkways? Is the paint peeling? If the home shows exterior signs of neglect, chances are the home as a whole hasn’t been well cared-for. Most problems will be uncovered during the home inspection, but the home might have up-front maintenance issues after you move in.

Is the Roof in Good Condition?

Roofs can be pricey to repair or replace. And if the roof isn’t in good condition, there could be water damage or rot underneath. Ask your agent about the age of the roof and take note of any missing shingles or tiles.

Is the Lot Level or Steep?

When viewing a home, you should also be thinking about what you might like to do with your property in the future. A level lot will afford you the most options for the least amount of money. A steeper lot might take some creative engineering (and a lot of cash) to make your dreams a reality.

How’s the Layout?

Once you get inside the home, you should take note of the floorplan of the home. Does it flow naturally from one space to the next? Or does it feel choppy and awkward? The latter might not necessarily be a dealbreaker, but you should always have the property’s resale value in the back of your mind.

Does the Home Receive Adequate Natural Light?

If you can, view the property at different times of the day and note how much light comes in. You can combat poor natural lighting with artificial lamps, but your energy bills will likely go up as a result.

You should also consider the home’s orientation. In the summer, any rooms that face west will be warmer than the rest of the house. If the home doesn’t have A/C, those rooms might be too hot to use. That could be a problem if they are ones you plan to spend a lot of time in – like the living room, home office, or kitchen.

What’s the Condition of the Appliances?

You can ask your agent to find out the age of the appliances in the home, but you should also inspect them yourself for signs of aging. Look out for rust, mold, or other evidence of neglect. If the appliances in the home you’re considering buying are older, you’ll probably need to budget to replace them in the next couple of years.

Are There Interior Signs of Neglect?

It’s easy to tell at a glance if a home has been well-cared for. Is the paint peeling or discolored? Are the baseboards scuffed? Is there a layer of dust in the corners of the room? Any unidentifiable stains on the floor? Yes, these are all superficial issues, but there are likely other, deeper problems hiding beneath the surface.

Does the Home Have a Musty or Odd Smell?

If the home smells damp or musty, there could be mold somewhere. If the home smells like pets or smoke, you’ll likely need to replace the carpet and flooring to get rid of it.

Do the Doors or Windows Stick? Are There Cracks Around the Windowsill?

Unless the sellers have explicitly designated an area as off-limits, don’t be shy about opening and closing the doors and windows. Sticking can be a sign of poor installation or foundation issues. Either one presents a costly problem to fix. You should also look for visible cracks around the windows. This can indicate that the home has foundation problems.

Is There Ample Closet Space?

Make sure you check out the closet space in the home. Even a small house will feel spacious if there’s enough room to store your things.

How Are the Pipes?

Plumbing is such an integral part of the house that it can be costly to repair. Discretely check under the sinks and around the showerheads and toilets. Is there any discoloration or spots of mold? These could be signs of a leak. You should also turn on the water and flush the toilet to check the water pressure. Poor water pressure could indicate a plumbing problem.

What’s the Privacy Like?

While you’re looking at the home itself, don’t forget to look out the windows. Can the neighbors see straight into your bedroom or bathroom? You may be able to build a higher fence or add hedges, but you’ll have to budget for these modifications and live with the situation until the work is done.

How’s the Noise Level Inside the Home?

Make sure you use your ears when viewing a home. Can you hear the road? The neighbor’s dog? The playground nearby? You may think you can live with the noise…but it also might drive you crazy after moving in.

Is There Water Damage on the Ceiling?

Don’t forget to look up as you walk through the home. Stains or discoloration on the ceiling could be a sign that the roof leaks. If this issue has been going on for awhile, the repairs could be costly.

How Much Maintenance Will the Yard Require?

Everyone wants a big, grassy backyard until they realize how much time and energy is required to keep the grass green and neatly trimmed. Same with a pool. If you don’t see yourself spending a lot of time enjoying that pool or patch of grass, you’ll probably like taking care of it even less.

If you’re ready to start touring homes in San Diego or have found “the one”, I would love to represent you!

The Total Beginner’s Guide to Buying a Home

December 26, 2017 by Danielle Negroni

If you’ve decided that 2018 is the year you’re going to take the plunge and become a San Diego homeowner, you might be feeling a little overwhelmed You might not know who you need to talk to first or where to start. Taking it step by step will make the experience feel manageable, which is why I created this Total Beginner’s Guide to Buying a Home to serve as your roadmap through the process!

Step 1: Find a Realtor

If you’re just starting to think about buying a home, it may feel like it’s too early to involve a Realtor. Not true! I’m there for my clients throughout the entirety of their home buying journey. Even if you don’t plan to buy for six months to a year, you will likely have a lot of questions I can answer. I can also advise you on certain things you will want to do (or not do) if you are serious about becoming a homeowner in the near future. I can also provide you with referrals for a few reputable lenders.

Step 2: Create Your Home Shopping Wish List

Take some time to sit down with the people who will be involved in the home purchase to create a wish list of things you’re looking for. Typically this will be your partner or spouse. Get everything out on the table: what kind of property you want to buy, the neighborhoods you’re interested in, the number of bedrooms and bathrooms you ideally want, if you want a yard, etc. Then go through your list to separate your wants from your needs. If you get stuck, take a look at my recent blog post for help.

Step 3: Meet With a Lender

Before you start searching for a home, meet with a couple of different lenders to discuss your financial situation and the different programs they offer. You will walk away with a lot of information to mull over so make sure you don’t rush this step. Your lender will also instruct you on what they will need from you in order to get you pre-approved for a loan.

Step 4: Clean Up Your Credit

You’re probably aware that having good credit is an essential part of the mortgage process. Your credit score not only affects your ability to qualify for a loan, it can also help you secure a more favorable rate. You will want to take some time to review your credit report and verify that there are no errors. Make sure there are no incorrectly reported late payments and that the balance on each of your open accounts is correct. You will also want to make sure you’re practicing good credit habits: pay your bills on time, keep balances low, and don’t open a bunch of new credit cards. Avoid making big purchases or purchases that might require a line of credit, like buying a car.

Step 5: Gather Necessary Pre-Approval Documents

Most lenders will want to see quite a few different documents from each person who will be on the loan. Every lender is different, but you should be prepared to present the following:

-Proof of Income in the form of W-2 statements from the last two years, recent pay stubs, proof of any additional

income you receive, and the two most recent years of tax returns

-Proof of Assets in the form of bank statements, investment account statements, and any cash reserves

-Employment Verification

-Driver’s License

-Social Security Number

Step 6: Get Pre-Approved For a Loan

Once you’ve selected a lender, you will want to set an appointment to get pre-approved for a mortgage. You will present all the required documents for the lender’s review and they will issue you a pre-approval letter that is normally good for 60-90 days. When you make an offer on a house, the pre-approval letter will be submitted to show that you are a serious, qualified buyer.

Step 7: Search For a Home

Now that you’ve selected a lender, been pre-approved for a loan, and have your home buying wish list together, we can get started on the fun part: shopping for your home! I’ll send you available properties in the MLS that match your criteria and schedule a showing for any that you want to see. I’ll also be networking with other agents to find off-market properties or properties that are not yet listed in the MLS for you to consider. As we view the properties that are for sale, you may want to make changes to your home buying wish list. This is perfectly normal and part of the process! My job is to find you what you’re looking for, no matter how many houses we have to see.

Step 8: Make an Offer

Once you’ve found the one, it’s time to make an offer! I will guide you through this process to craft a strong offer and present it to the seller’s agent. I will negotiate on your behalf and work hard to present you as someone the seller will want to work with. We may go through several counter offers, but if all goes well, we will reach an agreement with the seller and open escrow.

Step 9: Open Escrow

During escrow, the escrow company serves as a neutral third party. Their job is to make sure both sides are satisfying all the terms of the purchase agreement so the property can legally change hands.

Step 10: Inspect Your Purchase

Depending on the terms of the purchase agreement, you will have only a certain number of days to inspect your purchase and request any needed repairs prior to the sale. The two standard inspections most properties go through are the termite inspection and a general home inspection. Additional inspections may be ordered based on their findings or on the unique features of the home. I will help you negotiate any repair requests with the seller.

Step 11: Get Final Mortgage Approval

Before you can close escrow, the lender will need to issue final mortgage approval. It is absolutely crucial that as you go through the escrow process, you don’t do anything that could jeopardize your loan approval. Changing jobs, making expensive purchases, or opening additional lines of credit are all things that can affect your final mortgage approval.

Step 12: Attend the Final Walkthrough

Once the inspections are done, the repairs have been completed, and your mortgage is approved, we will have a final walkthrough. This is your last opportunity to ensure that all repairs have been completed satisfactorily and that there are no new issues with the property. If everything looks good, we’ll continue to the close of escrow.

Step 13: Sign Closing Documents

To officially close escrow, you’ll sign the final documents that are needed to make the property yours.

Step 14: Pick Up Your Keys

With all the conditions of the escrow met, the final documents signed and recorded, and the loan funded, I can deliver the keys to your new home. Congratulations!

If you’re ready to get started on your home buying journey, contact me today! I would love the opportunity to guide you through the process and help you become a homeowner.