Steps to Buying Real Estate in California

The happiness of buying a new home rejoices all of us. Everything from the local economy to your finances to the California housing market will influence the home you buy and how much it costs. The more you understand the steps involved in buying a home and current real estate trends in California, the better equipped you will be to make informed decisions. If you really wish to look out for your dream home then the most important task will be to find a good agent, like the Northern California real estate expert, Jamell Tousant. Jamell helps people buy and sell homes in the Bay Area, Oakland, Alameda, East Bay and the surrounding areas.

Step 1: Assess Your Current Financial Status

If you wish to buy a house with a mortgage, you must first understand how your financial status affects your purchasing possibilities. Before you buy a house, Jamell Tousant explains, you must have the following financial variables in order:

• Credit rating: While low-credit loans are available, most conventional loans require a credit score of at least 620. If your credit score is below that, you should start working to improve it right away.
• The Debt-to-income ratio is a measure of how much money you owe compared to how You should spend less than 36 percent of your monthly income on debt (including your future mortgage payment) in most situations.
• Down payment: For a traditional loan, you’ll need at least a 20% down payment.

Step 2: Locate a Suitable Neighborhood

Not only the design and qualities of the home are important but the locality is a major player too. One must be aware of how much capacity he has for spending on property. Before the initial look-out for the target, the property does spend some time doing the research for seeking the property of your choice. So that there will be fewer issues. You’ll need to assess how well each region suits your wants and preferences once you’ve compiled a list of areas you can afford and are a solid investment.

Step 3: Locate a Reputable California Real Estate Agent

The whole process is very complicated and time taking here you will definitely need someone to help. That person is called a real estate agent. Real estate agents like Jamell Tousant can also give recommendations for additional services such as lawyers, bankers, and escrow businesses, in addition to searching and showing you property.

Step 4: Get a Mortgage Pre-approval

There is a very strict policy among the sellers as they will not allow you to check or go through the home unless and until you have the letter from the approved mortgage. Agents hate to deal with fake or fraud buyers who lack at making financial deals or are not very serious in offers. Jamell Tousant says getting pre-approved for a mortgage assures both you and the seller that if your offer is accepted, you will be able to close on the property.

Your financial condition mustn’t alter once you’ve been pre-approved for a mortgage. As in case of no credit support the person may have to forget to buy the dream home. Then you have to begin hunting, set offers, inspect and finalize the property.