Morgan Lane Real Estate - Napa Valley Homes


Home Properties Buyers Sellers Napa Valley Resources About Anne Contact

Buy a Home
(Some Items Primarily For California)

1.	Get Your Financial Ducks in a Row Of course the starting point for such a major purchase is to take a look at your financial position. This is what the lender will look at first. Compile proof of your employment history, income, assets, expenses, tax returns, etc. Check your credit score and if it's not at an acceptable level, research ways to improve it. (See "Improving Your FICO Score.") This can make a big difference in the interest rate you pay. Don't make any major purchases or change jobs if possible.
2.	Get Loan Pre-Approval Begin by familiarizing yourself with various loan programs, interest rates and the mortgage industry in general. Then, seek out a qualified lender. Your real estate agent can direct you to loan representatives to talk with. Getting pre-approved is essential to do in the early stages of the home buying process. Once approved, know what your lender might be expecting of you throughout the entire transaction.
3.	Evaluate What it is that You are Looking For This may seem like an over-simplification, but the more refined you can be in your search, the better. Begin with your price range and then the essentials. How many bedrooms must you have as a minimum? How many bathrooms? Do you need a garage? A yard? What neighborhoods would you prefer? Must you have a single family residence (SFR) or would you consider a condominium or other type of housing? What is the minimum square footage you require? List the essentials (the “Must-Haves”) followed by the list of “Would Be Nice.”
4.	Choose an Agent to Work With You Don't go it alone! A good real estate agent — preferably a REALTOR® — can assist you in ways that are immeasurable. (In most cases this will not cost you as it is the seller who usually pays the commission.) A good agent will put your needs at the top of the list and help to make your dream of home ownership a reality. You will be guided with knowledge and expertise from the start of your search to the closing of your escrow.
5.	The Search This can seem overwhelming at first as there are homes for sale wherever you look and a variety of home sale ads and publications — both in print and online. You'll want to browse though everything you come across. Again, call on your Realtor®. With access to the Multiple Listings, other professional associations and being a part of a vast community of other agents, Realtors® can provide you with a comprehensive supply of property listings. With an agent who has this firsthand knowledge, you can be notified of brand new listings as they come up on the market — even through detailed emails which allow you to browse without leaving your home.
6.	Your Own Investigations When you have found a property you love, ask as many questions as you can and conduct your own investigations. What kind of house is it? Are there any easements? Are there any deed restrictions? How old is the roof? What kind of condition is the heating system in? Are there any current reports available? Is the home in a flood zone? Is the stated square footage accurate? Does the home have a Homeowners Association and if so, what are the restrictions and dues? What is the neighborhood like? Ask the sellers if others have shown interest in the property and/or if they are in possession of other offers. Check with the County or appropriate source for any add-ons or renovations you may be considering. Usually these investigations can be conducted after an offer is submitted, but the more you know from the start, the better. Of course, there is usually time to verify what knowledge you attain at this stage.
7.	Make an Offer Along with the help of your agent, you submit the Offer to Purchase (Residential 1-4 shown here) along with an "earnest money” deposit. (An increased deposit may be required after an offer is accepted and in escrow.) In conjunction with this form, your agent should have you fill out a couple of preliminary forms, such as an explanation of Agency, as well as Disclosure and Consent for Representation of More Than One Buyer or Seller. These two forms can be viewed on the Buyer Forms page. Consider what you want to offer and what is included along with the house. Be specific in the wording if you want to include window coverings, light fixtures, potted plants, etc. If you have a home to sell, this will be included as a contingency, as will your loan being funded, the house appraising at an acceptable amount, and other issues. Decide when you would like the escrow to close. This is a long form and it's best to read through it and discuss it at length with your agent. However, stay optimistic. This can be a very exciting experience!
8.	Professional Inspections If not done before the offer is accepted, you have time frames to complete whatever inspections you choose — even if not previously stated in the Purchase Contract. Your agent can help set up inspections and keep you abreast of the time frames. A general "Home Inspection" is usually recommended, as are other inspections which may include pest, roof, chimney, well, septic, radon, mold and others. Who pays for these can be negotiated at the time of the offer and/or with any counter-offers. If within the time frames of the contract, you find unacceptable issues which are deemed valid, you can be released from your obligation to purchase or can request that the owner make repairs, etc. Whereupon the inspections prove favorable, you are rewarded with more peace of mind in your purchase.
9.	Obtain Insurance You will be required to obtain Title Insurance, both for yourself and the lender. In Northern California, this is usually provided by the Title Company handling your escrow. You will want to shop around for Homeowner's Insurance. Do this early on if possible. Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by theft, fire, smoke, lightning, snow, ice and frozen pipes. The policy also usually provides coverage for liability claims, medical payments to third parties, and legal costs if a lawsuit is brought against you. For other events not covered, you may be able to purchase special policies or endorsements that will cover them. You can also (and may be required to) purchase additional insurance for floods, earthquakes or other occurrences.
10.	Sign and Close Escrow Assuming all of the contingencies of the contract have been met: appraisal completed, loan funded and the many items involved complete and satisfied, it's time to close escrow and prepare to take possession of your new home. (Make sure that you have done a final walk-though of the home.) You will sign your closing statement (also referred to as HUD-1), your deed and various other documents. For the balance you are likely to owe (including closing costs), the title company needs to be in receipt of "good funds." You will need a cashier’s check, certified check, or similar made payable to the title company. If you present them with a personal check, it could delay the closing until the check has cleared. Bring identification to the closing in the form of a current driver’s license, passport or State of California Department of Motor Vehicles ID card. Your signature can not be notarized without proper ID. Make sure that you have given the title company your fire and hazard insurance information in order for the loan to be funded.