Every state requires slightly different steps to buying a home, Here are the 8 simple step home buying process in California.
(1) Find the Right Real Estate Agent
A buyer’s agent can provide you with helpful information and look out for your best interests. and it doesn’t cost you anything! Real estate agents are important partners when you’re buying or selling a home. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable.
(2) Get PreQualified / Pre-approved
Figure out how much you can afford. Before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get prequalified for a mortgage. To get prequalified, you just need to provide some financial information to your Discover mortgage banker, such as your income and the amount of savings and investments you have. Discover will review this information and tell you how much we can lend you. This will tell you the price range of the homes you should be looking at. Later, you will get preapproved for your mortgage, which involves providing your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) so Discover can verify your financial status and credit.
(3) Finding The Right Home
Decide what you want to buy. Since you know how much house you can afford, you and your Realtor will be able to focus your search on homes in your price range.
(4) Make an Offer and Negotiation
Once the buyer has found the perfect home, it is time to make an offer on the property. This is an area in which a real estate agent is invaluable. He or she will base the offer price off of comparable homes that have sold recently in the area. The agent will draft a contract that is agreeable to the home buyer. The contract will include the price of the offer, as well as terms that the seller and the buyer will need to meet in order to achieve a successful transaction. The agent will ensure that the contract meets all of the necessary legal requirements
(5) Open Escrow / Order Title
When your offer is accepted, deposit your check in escrow, your agent will open escrow and order title report and insurance. (An escrow account is set up to collect your payments for property taxes, homeowners insurance and possibly other items)
(6) Home Inspection and Appraisal
Find a qualified home inspector to do a thorough inspection for your home. Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent usually will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage. Both you and the seller will receive a report on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.The lender will send an appraiser to ensure you are purchasing your home at a fair market value.
(7) Loan Approval
After all the underwriters’ conditions are met, your loan “docs” will be drawn and forwarded to a signing agent or the escrow company for signatures. Your loan officer will contact you to arrange a convenient time for signing. The signed documents will be sent to the lender to fund your loan. Funds are transferred to escrow by wire. The seller will sign the grant deed.
(8) Close of Escrow & Move in
At closing, you will sign all of the paperwork required to complete the purchase, including your loan documents. It typically takes a couple of days for your loan to be funded. Title will notify you and your agent when it records. After you get a confirmation of recording, the property is officially yours. you’ll receive the keys and move in!!