Before you contact a San Diego real estate agent and start looking at new homes, there are a few things you should know prior to starting the home buying process. While the process of buying a new home is exciting and a bit overwhelming, knowing this information well in advance can eliminate a great deal of tension and stress you might otherwise experience during the home buying process.

What Should I Do Before Buying a Home?

Nothing is worse than looking at a home, making an offer, receiving an acceptance and finding out from your lender that you don’t qualify for a loan in that amount. For this reason, you must become pre-qualified for a mortgage before you begin hunting for homes in San Diego. Before you do this, however, take a few minutes to check your credit report to ensure that all is correct and no mistakes need correction. You should also make sure that you have enough for a down payment saved.

How Much Can I Afford?

What you can afford is based on a number of factors. A pre-approval for a specific amount does not necessarily make it possible for you to afford a new home. You must include other factors, such as the cost that comes with owning a home. This means you must account for the cost of utilities, the cost of maintenance, taxes and insurance on a new home.

Why Should I Buy Instead of Rent?

Renting is fine for some people, but it’s not the most financially responsible option. Renting a home is equivalent to throwing money away. At the end of a rental agreement, you have no home and nothing to show for it. When you buy, you are placing money into the value of your home. When you decide to sell, every bit of money you’ve put into your home becomes an asset.

How Do I Choose the Best Mortgage Loan?

There are two types of loans typically available for homebuyers. An adjustable rate mortgage is one in which your payment will change every few years because your lender changes your interest rate. The other is a fixed rate mortgage, which means your payment will remain the same throughout the life of your loan as your interest rate never changes. Deciding which is best for you is a personal decision. Only you can determine if a changing interest rate is something you want to deal with or not.

What Should I Look For When Deciding on A Community?

The biggest mistake you can make when buying a home is choosing one in a community you don’t actually want to live in. For example, if you’re into hiking, biking and outdoor activities, living downtown might not be a good idea. If you’d rather walk to dinner and have shopping and entertainment within walking distance, living in the suburbs might not be a good idea. You have to consider what’s most important to you: schools, proximity to work, proximity to family and whether or not the rest of your neighborhood consists of what you want.

How Do I Make the Right Offer on a Home?

Making the right offer is an important aspect to consider when buying a new home. Generally, it’s advised that you subtract 5 percent off the total asking price when making an offer. Additionally, you realtor can check other recent sales in the same San Diego neighborhood for comparable sales, which means homes with the same overall features and space. This can give you an idea of what might constitute a fair asking price.

There’s a lot to think about and consider when buying a new home, but that doesn’t mean that you can’t make a good, educated decision after arming yourself with the proper knowledge. It’s not as scary as many people think, but knowing what you’re in for is going to make the process a whole lot simpler.

See All San Diego Listings