Home Buyers

Purchasing a home is one of the most important decisions in a person’s life. The buying process requires right resources to help you make the right decision. A real estate professional can help you to achieve your goal. Though each individual case may vary, generally the buying process involves the following steps:

1. Decide the price range of the house that I can afford

  • How much cash reserve you have for down payment:
    • you can provide Checking, Savings, CD, 401K, Brokerage Accounts, Mutual Funds, Stocks, etc.
How Much Home Can I Afford?
  • How much loan I can get:
    • You need to work with your banker or a licensed loan officer to get a pre approval letter which shows how much money you can borrow.

2. Apply for a loan

­For U.S. residents, you need to provide the following:

  1. Fully executed purchase agreement
  1. Government Issued ID/state driver’s license copy
  2. Last 2 years Tax Returns
  3. Last 2 years W-2s
  4. Two most current consecutive pay stubs
  5. Two months asset statement (Checking, Savings, CD, 401K, Brokerage Accounts, Mutual Funds, Stocks, etc)
  6. Signed borrower authorization and loan application

For foreign buyers, you need to provide the following:

  1. Fully executed Purchase Agreement
  2. Valid Passport copy from country of origin, valid visa and I-94 card copy
  3. HR or CPA letter verifying last two years income
  4. Four credit reference letters or international credit report, can be in language of original country
  5. Two months asset verification in an internationally acknowledged banking institution
  6. Signed borrower authorization and loan application

3. Looking for houses

Communicate with your REALTOR®, let her/him know:

  • Searching criteria: square footage, year built
  • What you value most: school district, cardinal direction
  • What is your time frame?
  • Set up Client Connection with your realtor. Then you will receive new properties in emails that match your requirements.
  • Viewing properties with your realtor to find your dream home

4. Making an offer

  • Your realtor will provide a list of recently sold properties in the area for your reference
  • Analyze current market trend
  • Your realtor will help you make an offer with detailed terms and conditions

5. Entering Escrow and remove contingency

If the seller accepts your offer, then you are entering escrow. Escrow is a third party account for holding funds and documents to meet requirements of California Association of Realtors until the transaction is completed. The house will be taken off the listing, but it does not mean you own the house.

In the first 17 days after you have entered escrow, buyers are responsible for inspections and research of the house; meanwhile, the loan officer/banker will help you finance for the house. Both buyer and seller need to sign many documents. If you are a first time home buyer, ask your realtor for details.

On the 17th day after entering escrow, buyers are supposed to be done with the inspections and research for the house along with a loan approval. Buyers need to sign a document called Remove Contingency. This means your deposit is no longer refundable.

6. Close of Escrow and move in

Close of escrow means the real estate transaction is completed. The new owner’s name should be recorded in county record. Buyers should have the keys. Congratulations!