1.Selecting a real estate agent- If you select the right real estate agent to help you buy, you have done half the job. A good real estate agent will guide you through the entire process of home buying, particularly the financial ones and will make the experience much easier for you. An agent is well- acquainted with all the important things you will want to know such as the neighbour hood, safety, the quality of schools etc. of a particular place you may be considering. And the best part is- you don’t have to pay the agent anything, the seller has to make the payment.
2.Inspecting the home-It is always a good idea to hire an independent professional home inspection service before you buy a house in CA. It is a visual examination of structural, mechanical, electrical, plumbing systems inside the house by a professional. This includes a general home inspection such as roof, termite, foundation, drainage, walls, windows, doors etc.
3.Disclosure statement- California law says that a seller should provide the buyer the complete real estate transfer disclosure statement before selling a house. This lists many features about the house, the land, the area where the house is located. This statement must disclose the structural defects or other problems about plumbing, electrical etc., if any.
4.Know about RESPA-The US department of Housing and Urban Development administers several regulatory programs to ensure equity and efficiency in the sale of housing. Real Estate Settlement Procedures Act (RESPA) protects buyers by mandating a series of disclosures that prevent unethical practices by mortgage companies and provides information about real estate settlement services to the buyers.
5.Types of loan-There are different types of loans to choose such as fixed rate, adjustable rate, balloon payment, negative amortization. Here you need the help of your real estate agent.
6.Closing costs-In CA, you can expect to pay for the following charges, called closing costs at the time of purchase of your home.
a. loan origination fee
b. processing fee
c. appraisal fee
d. document preparation fee
e. closing fee
f. title insurance
7. Assistance program for first time homebuyers-Although many people can afford a mortgage payment and associated costs, the thought of coming up with a substantial down payment often restrict them from buying. Charity organizations and federal institutions are there to assist them.
