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How to Buy a House in San Diego

If you are thinking about buying a home in the beautiful southern California area of San Diego, there are quite a few things to know and do before you get to the actual purchasing process. Buying a house anywhere can be daunting — but buying a house in an area where 9 million people already call home can be an even bigger feat. If you are wondering how to buy a house in San Diego, then this guide is for you.

Tips for Buying a House in San Diego

The home buying process can be long and drawn out if you do not know what you are getting into. Especially for a first time home buyer in San Diego, buying a house is a huge decision, and if you are tackling the process yourself you will want all of the advice and tips available to you. There are many benefits to living in a southern California community. So what are the steps to buying a home? We outline everything you need to know below.

How Much Do You Need to Buy a House in San Diego

One of the most important steps when it comes to how to buy a house in San Diego is figuring out how much house you can afford. Buying a house will be the biggest purchase that many people make in their lifetimes, and so it is essential to keep your home within your budget. There are many elements that come into this decision, including the cost of living in the areas you are exploring for your home and how much of a down payment you want to have.

What Credit Score Do You Need to Buy a San Diego House?

Your credit score is a very important factor in buying a house. The recommended credit score for getting a mortgage on a house is 680 or above. This will make sure you get a better interest rate, allowing you to get more house for your dollar. 

A lower credit score will mean a higher interest rate and more money that you have to put down up front to get into the house you want. If you do not regularly keep an eye on your credit score, there are many websites that will give you a picture of where your credit is and what you need to work on to help drive those numbers up.

How Much Should I Save Up for the Down Payment

When it comes to figuring out how to buy a house in San Diego or even how to buy a vacation home, knowing how much you should save up for a down payment factors highly into how quickly you can move, the amount of house you can afford, and how much buying a house may affect your overall finances. 

Many sources will recommend that you have 20% of the total cost of the house available as a down payment. However, some home loans may require less of a down payment, but your monthly mortgage payment may be higher. Of course, you might be in a position of using the proceeds from selling a house in San Diego for a down payment, which can help you put down more than the average rate.

Neighborhood Research

So you have gotten to the point of looking for homes for sale in San Diego County. Have you thought about exploring the neighborhood you want to live in first? Finding a neighborhood that caters to all of your needs without the necessity of travel headaches or going out of your way for what you want can be vital to the homebuying process. 

Realtors recommend you visit a house at least 6 times before making an offer — three times to look at the house itself, and the other three times to explore the neighborhood surrounding the house.

Real Estate Agent

Using a real estate agent isn’t a must as a home buyer. However, it is strongly recommended. Especially if you are a first time home buyer, the buying process can be lengthy and complicated, and it may require legal steps that you are not aware of. 

If you want to know, “Should I wait to buy a house in San Diego?”, a good real estate agent will be able to answer that, as well. Look for real estate agents that have experience with the area where you are looking, and are willing to fight for what you want in a home. Picking the right real estate agent may mean finding the house of your dreams!

Look for the Right Home

This part may seem easy — you know what you want and you are ready to go look at houses. Homes for sale in San Diego County may be numerous, but there may only be a few that meet all of your hopes and expectations for your perfect home. You may be looking all over the county or you may have narrowed your search to specific La Jolla real estate, but no matter where you are trying to buy a house, making sure you check all the boxes for the right house is extremely important. 

A great real estate agent does more than making sure the bones are good and water quality is up to par. The ideal real estate agent should also make sure that everything is perfect for you. There are also checklists and scorecards available online that will help you ensure everything is covered, and you may even want to check local websites or blogs for the best time to buy a house in San Diego.

Mortgage Lender

Finding a great mortgage lender is another important step in the home buying process. A mortgage lender should work to help you find the best possible loan rate you can find, including getting you a monthly mortgage payment you can afford on a house you want. While it may not be the infamous Razor House in La Jolla, a good mortgage lender will get you one step closer to easily being in the home you want.

Loan Types

There are many different types of loans available through a mortgage lender. The lender will look at your financial portfolio and your needs.

• USDA mortgages are good for people who are looking in rural areas. This type of loan may even allow you to finance the purchase price completely and put no money down.
• FHA loans are perfect for people who do not have a lot of money to work with for a down payment, or who may not have a perfect credit score. There are many types of FHA loans available and a good mortgage lender will find the perfect one for you.
• VA loans are specifically for people who have served in the military or are currently serving. These loans work with bad credit and no down payment, to give our active service members and veterans a leg up to getting a home.
• Special low-income loans may be available too, for people who meet certain income limits and need more help getting into their very own home.

Put an Offer Together

Once you have completed all of the steps above and are working with a great real estate agent while looking at your perfect house, it is time to put together an offer. Your real estate agent will help you with the correct amount to put down and the negotiations that may be made, and once the offer is accepted your money will go into an escrow account that will ensure fairness from both parties.

Home Appraisal

Even if you manage to land one of these 5 incredible homes in La Jolla that you didn’t know existed, you will want to have the home appraised as soon as your offer has been accepted. This means that a third party will come and appraise the home for its current value. This will help you know that you are getting the home that you are paying for. Typically the buyer pays for the home appraisal, so keep that in mind when you are calculating costs.

Home Inspection

Just as important as the home appraisal is the home inspection. Especially if you are a first time home buyer, there may be issues with the house that you would not know to look for. A good home inspector will examine the house from top to bottom, looking for any issues that may not have been disclosed during the buying process.

Organization Is Key

All of these steps in buying a home may seem overwhelming, but if you do your work on the front end and keep your paperwork in line, the process will be much easier. Documents must be complete and completely accurate for the sale to be viable. Working with an experienced real estate agent will help you with this organization.

Closing the Sale

Closing on your home is not just getting the keys. There will be a final walk-through, settling of contingencies, and paying closing costs, which can be 2%-5% of the total cost of the home. You may be anxious to get those keys and start your new home life, but having all of your documents and funds settled and transferred will ensure you less hassle in the long run.

Moving in Your New Home

Congratulations, you are a homeowner! When you get to this step, grab hold of the pride and happiness you will feel at taking this huge step towards a better life. The moving process may seem tedious but there are many sources of help out there. Your mortgage company or realtor may have information or even insider deals on things like moving companies, utility services, or storage facilities.

Maintaining Your Home

Once you have made it into your house, it is important to maintain your home just as you would a car or other item that needs some upkeep to keep working at its best. You will want to keep up on regular maintenance both on the inside and outside of the home itself as well as the land your home is on. 

Researching online can provide a lot of information for home repair necessities, even if you just type concrete contractors near me into your browser. With a little attention and work upfront and on a regular basis, your home can be your perfect haven for years and years to come.

About the author: When not hiding behind a laptop, Cara Becker can be found asleep or exploring the wide world of interesting things, like how to bake the perfect cheesecake and where to find the best waterfalls. If you’re interested in exploring food you’ve never tried or learning a word you don’t know, please share your wisdom with her on her LinkedIn profile.