Buying a home raises a lot of questions. Over the years we’ve found that home shoppers we work with ask similar questions about buying their home. We answer all of those questions (and more!) below.

The first step in buying or selling a home is finding a great Realtor. A skilled Realtor will guide you through the process, help you assess your unique situation, and identify the best next steps, whether that’s getting a mortgage pre-approval, defining your home search criteria, or something else entirely.

When choosing a Realtor, it’s important to find someone you trust and feel comfortable with, as they’ll be representing you in one of the largest financial decisions of your life. Start by asking friends or colleagues for referrals, but focus on agents with experience in your specific area or market. Look up their online profiles, read reviews, and check their track record of sales.

Interview at least three agents to compare their experience, communication style, and approach. Ask key questions like:

How long have you been in real estate?
How many homes do you sell in an average year?
What’s your strategy for helping me buy or sell a home?
How will you communicate with me (e.g., email, phone, text)?

A good Realtor will listen to your needs, provide clear answers, and have a plan tailored to your goals. They should also be responsive and proactive, ensuring you’re supported every step of the way. Taking the time to find the right Realtor will set you up for success and make the entire process smoother and less stressful.

The difference between pre-qualification and pre-approval lies in the level of verification and reliability of the information provided.

Pre-Qualification: This is a preliminary step where you provide basic financial information, such as income, assets, and debts, often without documentation. The lender may perform a soft credit check, but the process is quick and provides only an estimate of how much you might be able to borrow. Pre-qualification is useful for getting a general idea of your budget but is not a guarantee of loan approval.

Pre-Approval: This is a more thorough process that involves submitting financial documents (e.g., pay stubs, tax returns, and bank statements) and undergoing a hard credit check. The lender reviews your information to provide a conditional loan offer, including a specific loan amount and interest rate. Pre-approval carries more weight with sellers, as it demonstrates that your finances have been verified and you’re a serious buyer.

In competitive markets, pre-approval is often required to make an offer, as it shows sellers you’re ready to proceed with the purchase. Pre-qualification, while helpful for early planning, is less reliable and not typically sufficient for making offers.

A home inspection is a critical step in the home-buying process, providing an objective evaluation of a property's condition. Here's how it works:

Who Pays for It?
The buyer typically pays for the home inspection, which is optional but highly recommended. Costs vary based on the home's size and location.

When Does It Happen?
The inspection occurs during the buyer's inspection period, usually 7-15 days after the offer is accepted. This timeframe is negotiated in the purchase agreement.

What Does It Include?
A licensed inspector examines the property from top to bottom, focusing on major systems like the roof, HVAC, plumbing, electrical, foundation, and appliances. They look for visible defects, safety concerns, and potential maintenance issues.

Who Attends?
Buyers are encouraged to attend, especially at the end, to review findings with the inspector. Sellers can attend but are often advised not to, as it allows buyers to ask candid questions.

What Happens Next?
After the inspection, the buyer receives a detailed report. If issues are found, the buyer can negotiate repairs, request a price reduction, or, in some cases, walk away from the deal

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A home inspection ensures buyers understand the property's condition and helps them make informed decisions.

In Southern California, a home inspection doesn’t result in a "pass" or "fail" but instead provides a detailed report on the property’s condition. Here’s what happens if issues arise during the inspection:

Understanding the Report: The inspection is like a health check-up for the home, highlighting its strengths, potential safety concerns, and maintenance needs. It’s not about passing or failing but about giving buyers a clear picture of what they’re purchasing.

Negotiation Options:

As-Is Contracts: Common in Southern California, these allow buyers to cancel the contract during the inspection period if they’re unhappy with the findings. Buyers can request repairs or credits, but sellers are not obligated to comply.
Standard Contracts: These may require sellers to address specific repair categories, such as structural or safety issues, within agreed cost limits. If repair costs exceed these limits, buyers and sellers can renegotiate or terminate the contract.

Next Steps:

Renegotiation: Buyers can request repairs, price adjustments, or credits based on the inspection findings. Sellers can agree, counter, or decline.
Walk Away: If no agreement is reached, buyers can cancel the deal during the inspection period without penalty.
Use the Report: If the buyer proceeds, the inspection report becomes a valuable guide for future maintenance and repairs.

In Southern California, where homes range from mid-century modern gems to newer builds, inspections are a critical part of the process. They help buyers make informed decisions and ensure sellers are transparent about the property’s condition.

An escrow deposit, also known as an earnest money deposit, is a good faith payment made by the buyer to demonstrate their commitment to purchasing a property. Here’s how it works:

When It’s Paid: The escrow deposit is typically made when the buyer’s offer is accepted or within a few days after both parties sign the sales contract.
Who Holds It: The deposit is held by a neutral third party, such as a title company, escrow company, or attorney, in a secure escrow account. This ensures the funds are protected until the transaction is completed.
How It’s Used: If the sale proceeds as planned, the escrow deposit is applied toward the buyer’s down payment or closing costs at the time of closing.
Contingency Protections: The deposit is safeguarded by contingencies outlined in the sales contract. For example, if the buyer cancels the deal due to issues like a failed inspection, financing problems, or unmet conditions, the deposit may be refunded. However, if the buyer backs out without a valid reason, the seller may be entitled to keep the deposit.

The escrow deposit is a key part of the home-buying process, providing security for both buyers and sellers while ensuring the transaction moves forward smoothly.

Whether you can get your escrow deposit back depends on the circumstances and the terms of your contract. Here’s how it typically works:

Contingency Protections: If you cancel the contract due to a valid contingency (e.g., inspection issues, financing denial, or title issues), you are generally entitled to a refund of your escrow deposit. Both you and the seller must sign a release form to authorize the return of funds.
Disputes: If there’s a disagreement over who is entitled to the escrow deposit, the funds will remain in the escrow account until the dispute is resolved. In California, disputes may lead to legal action, and the escrow holder may deposit the funds with the court to avoid liability.
Forfeiture: If you cancel the contract outside of the contingency period or without a valid reason, you may forfeit your escrow deposit to the seller. This is often the case if you back out of the deal without meeting the contract’s conditions.
Legal Guidance: In cases of disputes or unclear contract terms, consulting a real estate attorney is essential to protect your rights and understand your options.

The escrow deposit is designed to protect both parties, so understanding your contract and acting within its terms is crucial.

The amount of money you need for a down payment depends on several factors, including the type of loan, your financial profile, and the property you’re purchasing. Here’s a breakdown:

No Down Payment Options:

VA Loans: For qualifying veterans, VA loans offer 100% financing, meaning no down payment is required—just closing costs.
100% Financing Conventional Loans: Some lenders now offer conventional loans with no down payment, requiring only closing costs.

Low Down Payment Options:

FHA Loans: These require a down payment of just 3.5% of the sales price, making them a popular choice for first-time buyers or those with lower credit scores.
Conventional Loans: Some programs allow as little as 3% down for qualified buyers.

Higher Down Payment Scenarios:

Condos, Rental Properties, and High-Value Homes: Lenders often require larger down payments for these types of properties, sometimes 10-20% or more.
Program Variability: Mortgage programs and their requirements can change over time, so it’s essential to stay updated.

The best way to determine how much you’ll need is to consult with a lender about your specific situation. They can review your financial situation and provide guidance on the most suitable loan programs and down payment requirements for your needs.

An appraisal is a critical step in the home-buying process, ensuring the property’s value aligns with the sales price. Here’s how it works:

Who Orders and Pays for It?
The lender orders the appraisal, but the buyer pays for it. It’s typically done after the home inspection to avoid unnecessary costs if the deal doesn’t move forward.

What Does the Appraiser Do?

Visits the property to measure dimensions, assess its condition, and document features or upgrades.
Takes photos and compiles a report.
Compares the property to recently sold, similar homes in the area (known as “comps”).

What Happens Next?

The appraiser submits the report to the lender.
The lender’s underwriter reviews the report to confirm the property’s value for financing purposes.

Possible Outcomes:

Appraisal Matches or Exceeds Sales Price: Great news! The lender will proceed with financing, and you may even get a deal if the value is higher than the sales price.
Appraisal Below Sales Price: You’ll need to cover the difference between the appraised value and the sales price at closing unless the seller agrees to lower the price or other terms are negotiated.

Appraisal Contingency:
To protect yourself, consider including an appraisal contingency in your offer. This allows you to renegotiate or back out of the deal if the appraisal comes in low.
Most appraisals align with the sales price, but they’re an essential safeguard to ensure you’re not overpaying for a property.

Closing costs are the fees and expenses associated with finalizing a real estate transaction. Here’s a breakdown of who typically pays for them and how much they might be:

Who Pays for Closing Costs?

Buyers: Typically responsible for costs like the recording of the new mortgage, loan origination fees, appraisal fees, and prepaid items like property taxes and homeowner’s insurance.
Sellers: Usually cover costs like documentary stamp taxes (or “doc stamps”) and real estate agent commissions.
Negotiable Costs: The contract allows flexibility, so either party can agree to pay certain costs. For example, the party selecting the closing agent is responsible for the Owner’s Title Policy. Additionally, buyers can request seller assistance, where the seller provides a credit to help cover the buyer’s closing costs.

How Much Are Closing Costs?

Closing costs for the buyer generally range from 2-5% of the sales price. The exact amount depends on factors like the property’s price, the loan program, and the lender’s fees.

Getting an Accurate Estimate:

Your mortgage lender will provide the most accurate estimate after completing your pre-approval and determining the best loan program for you.

Closing costs can vary widely, so it’s important to review your lender’s estimate and discuss any potential assistance or negotiations with your Realtor.

Yes, you should absolutely use a Realtor when buying new construction. Here’s why:

Representation Matters:

The builder’s sales representative works for the builder, not you. Their job is to protect the builder’s interests. A Realtor represents your best interests, ensuring you have someone advocating for you throughout the process.

No Additional Cost to You:

The builder typically pays the Realtor’s commission, so using a Realtor won’t cost you extra or affect the price of the home. Be sure to confirm with your Realtor that they don’t charge additional fees (e.g., transaction or compliance fees). If they do and won’t waive them, consider finding another Realtor.

Expertise and Guidance:

A Realtor experienced in new construction can help you negotiate with the builder, potentially saving you money or securing upgrades. They’ll guide you through the process, attend contract reviews and walk-throughs, and help manage timelines to avoid delays or surprises.

Timing is Key:

You must involve a Realtor before signing anything with the builder or even providing your contact information. Once you’ve done so, the builder may refuse to allow you to bring in a Realtor later.

Having a knowledgeable Realtor by your side ensures you’re protected, informed, and supported throughout the new construction process. It’s a smart move that costs you nothing but can save you time, money, and stress.

Buying and selling a home at the same time can feel overwhelming, but it’s manageable with the right strategy. Here are your options:

Sell First, Then Buy:

List your home for sale and start looking for a new one. Once your home is under contract, make an offer on your favorite new home. Negotiate a longer closing timeline on your current home to allow time to find and close on the new one. This approach makes your offer more appealing to sellers since your home is already under contract.

Buy Before Selling:

If you qualify for a loan without selling your current home, you can buy first and sell later. Once your home sells, you may adjust loan terms for better rates. If your home isn’t listed yet, you’ll need to offer strong incentives (e.g., minimal negotiation) to make your offer competitive. This approach is riskier in fast-moving markets where sellers prefer buyers with homes under contract.

Occupancy Agreements:

Post-Closing Occupancy: Sell your home but stay temporarily after closing until your new home is ready.
Pre-Closing Occupancy: Move into your new home before closing.
These agreements provide flexibility and reduce timing stress.

Key Tips:

In competitive markets, sellers may not accept offers from buyers whose homes aren’t under contract. A skilled Realtor can help structure deals, negotiate timelines, and use tools like contingencies or occupancy agreements to protect your interests. With the right guidance, buying and selling simultaneously can be a smooth process.