Kari McCoy commentary: Steps to buying a home in California

Question: I have been thinking about buying a home, as my lease is up in a few months. Can you please tell me where to start? Answer: Thank you for your popular question. It is an exciting jump from renter to homeowner! Some folks may find this process exciting but daunting. This is due to our real estate market constantly changing and the unfamiliarity of the whole process, but knowing steps ahead of time might be helpful. * Find out your credit score. The higher your score, the better your loan rate. Sometimes, folks might have to wait four to six months to build up their score. This is very common. Mortgage lenders can offer excellent tips for fast results. * Collect your finances and documents (unless you are an all-cash buyer). Mortgage lenders will need to have all your income, taxes, assets, debts and credit history. Gathering this in advance saves time. * Look for a savvy and honest mortgage lender that will take the time to help you understand all of your loan choices and determine your best selection. Feel free to talk with several mortgage lenders and comparison shop. * Once you have selected a mortgage lender and they review all of your finances to determine your borrowing power, you will be provided with all the costs, loan fees, appraisal fee, title and escrow fees, how much deposit monies you will be required to pay, along with your monthly mortgage payment, including property taxes and homeowner insurance. * A pre-approval letter from the mortgage company will state the amount of loan they are willing to offer you. This letter will need to accompany any purchase offers you write. * Select the right professional real estate agent who will be your go-to guide from the beginning to the end of the home buying journey. You should feel confident in their experience, availability, communications skills and ability to provide a wealth of knowledge for you. Also, they will represent your best interest in the transaction, helping you locate and negotiate a purchase contract that meets your needs and provide you due diligence before you're bound to the purchase. * Research line areas, cities, neighborhoods that interest you. Mull over all the aspects that are important to you, such as close to good schools, close to work, near shopping or a park, etc. * Prioritize your wish list and be realistic with what you can afford and what homes are in your price range. Having a clear idea of what's most important to you and what you're willing to settle on will make the shopping experience more enjoyable and adaptable. * Collect a list of homes from your research that you would like to view with your agent in person. Take pictures and notes to help you remember what you like and did not like about each home. * Make an offer when you have found the home you want. Your agent will advise you of all of your choices while writing your purchase contract. * Your agent will negotiate the terms. Sometimes, there will be several counter offers between the seller's agent and buyer's agent before an agreement can be reached. Your agent will help you understand and advise your best options. * After you have signed a purchase agreement on a home, an escrow account at a title company will be created. This is a third neutral party that can be trusted. Your good-faith money will be deposited there. This goes toward your down payment monies. * Inspections on the property will take place. Your agent will advise you and negotiate with the seller's agent if there are any needed repairs. Some sellers might be willing to accommodate requests of repairs by buyers, while others may not. * An appraisal on the home will be ordered by the mortgage lender. This is necessary to determine whether the home's contract price is appropriate given the home's condition, location and features. The mortgage lender is not going to loan more money than the home is worth. * Walk through of the property. Buyers and their agent will go through the home, making sure there are no new changes, damage and any agreed-to work by the sellers has been completed. * Signing closing documents at the title company, your agent will make sure all the documents and figures match the purchase contract. The mortgage lender will wire their money to the escrow account and you will bring in any additional monies previously agreed upon. * Recording of the deed and you receive your keys, you are now in the group of proud homeowners! Now that we have a quick overview of the buying process, be wise to surround yourself with knowledgeable professionals who are willing to help guide you for your best choices. I wish you the best! Kari McCoy has been a Realtor for 30-plus years and owns the Kari McCoy Group, Residential Real estate, at Lyon Real Estate.She can be reached at 916-933-5274 or by email sold@karimccoygroup.com. License #00841588