noob question

Hello,

Can someone give a guideline on the steps of home buying? I know this isn't a simple linear step process but a simplified guide or a link to a site would be helpful.

Do I find a home first or do I get a pre-qual first?

1. Get prequal
2. Find home
3. Make offer
...
..
.

Something like that.


Thanks
ss

I would get a solid prequal first.

You need to know how much money you can spend and the sellers need to know you are able to finance your purchase easily.

Second, find out if it's more affordable for you to buy or rent... or if you would prefer one over the other.

Third, find a good agent. Someone who will look out for your needs and not just their commission.

Everything else after that is up to you... but you should get those things in order first.

And welcome to TalkIrvine!

Everyone makes up their own process to suit their comfort level. Here is a generic process to guide you:

1. Zero in on a city that you would like to move in.
2. Take a tour of that city during day and during night.
3. Go to a few open houses and visit a few model homes and see what you might like in your house.
4. Interview a few Realtors.
5. Discuss with family and come with a comfortable purchase price.
6. Set aside six months worth of mortgage and taxes in a separate account.
7. Pre-qualify and start touring properties with your Realtor.
8. Every house you see, make your comments on the MLS listing page that your Realtor gave you. Put a price you think is good for that property.
9. Take a two month break. See what prices did those properties sell for.
10. If you are ready to take the plunge, visit a few properties you would want to buy and make offers.
11. Start purging your stuff at home. Line up your donations. Part with anything that won't move in the new house.
12. If you hear that your offer was accepted, next thing would be inspections. Get hold of a very good inspector and be present at the time of inspection. It's helpful.
13. Get ready mentally to part with the down payment.
14. Sign escrow papers and arrange for movers/ handymen.
15. Move in. And sit on the couch, look at the room full of boxes and wonder when and how you accumulated so much stuff. Wonder if it was a right decision. Wonder if you should have offered on another house. Continue the wondering process for a few weeks till you get settled. You will finally be "settled" the day one of your neighbor sells his house for a price bigger than your purchase price.

Welcome to Talk Irvine.

1. Read everything that bkshopper ever wrote.
2. The rest is up to you.

Escrow process is outlined here: Escrow

or if you're a visual learner:


-IrvineRealtor

^ Very informative post IR- I will be forwarding this to many
IHO was right- you SHOULD write a blog. There isn't much information available about short sales, foreclosures or auctions. Also, there isn't much written about buying/selling investment properties for first timers.

CZ has it just about right.

First order of business, before you do everything in CZ's post:

Write out a budget. Most $1,200 per month renters are facing a $2500 per month house payment when they buy and have no idea what financial impact home ownership has. Start with what your current expenses are, then match them with your future expenses:

Rent $1,200
Mortgage $2,500
Water (Rent) None
Water (Own) $50
Gas (Rent) None
Gas (Own) $15

and so on. Once you've done this start putting the difference between renting and owning into the bank. This will "train" your personal budget to get used to higher costs and boost your savings account.

I often find people looking at $400k priced homes not realizing that they can only afford $200k condos when they budget things out. This step is vital to knowing if your better off renting or buying before you go out and put a deposit down on a home.

[quote author="Soylent Green Is People"]Start with what your current expenses are, then match them with your future expenses:

Rent $1,200
Mortgage $2,500
Water (Rent) None
Water (Own) $50
Gas (Rent) None
Gas (Own) $15
[/quote]

Not sure about others but I've never had zero utility costs while renting. We've always had utility expenses like water, gas, electricity, sewage / trash, etc., etc. I've sometimes seen water included but that's about it.

Agreed, but I have to use something in the example.

Most noobs don't budget for gardeners, repairs, leaks, extra insurance, summer air conditioning bills ($300 pm.... house vs $150 pm apartment) and winter gas costs. Then there is the cost of eating out, movies, cell phones, netflix, garbage hauling,... the list is practically endless.

If a buyer takes a realistic look at what they are spending they will find out quickly what home price they can reasonably afford.

[quote author="Soylent Green Is People"]CZ has it just about right.

First order of business, before you do everything in CZ's post:

Write out a budget. Most $1,200 per month renters are facing a $2500 per month house payment when they buy and have no idea what financial impact home ownership has. Start with what your current expenses are, then match them with your future expenses:

Rent $1,200
Mortgage $2,500
Water (Rent) None
Water (Own) $50
Gas (Rent) None
Gas (Own) $15

and so on. Once you've done this start putting the difference between renting and owning into the bank. This will "train" your personal budget to get used to higher costs and boost your savings account.

I often find people looking at $400k priced homes not realizing that they can only afford $200k condos when they budget things out. This step is vital to knowing if your better off renting or buying before you go out and put a deposit down on a home.
[/quote]

Let's simplify. If you're comfortable in a place that rents for $1200, you shouldn't waste time even thinking about buying a house in Orange County.