Ten Tips for Potential Home Buyers:

1. Lead with your head, then your heart

You want to fall in love with the house you’re going to buy, but don’t let that love blind you to aspects of the home that might not be suitable for you and your family. Be realistic with what you can afford.  This is a big investment and you want to be thinking with your head before reacting with your heart.

2. Understand your commute

Before making an offer on a home, drive to work from the house at your usual commute time to determine what your realistic commute time would be.

3. Research the schools

Even if you don’t have children of school age, the quality of the schools can often have an impact on the future marketability and value of your home.

4. What’s around the home

Understand the zoning in and around the neighborhood — what could be built that could affect the value of your home. That open space you love next to your home may be a new residential or commercial development in the future.

5. Home inspection contingency

It is at the buyer’s option to order a home inspection, but it is an important aspect of your transaction. A home inspector evaluates the structural, mechanical, electrical condition of the property you are purchasing. This report can help you negotiate an adjustment to the purchase price, if necessary, or enable you to get out of the purchase agreement if the report reveals too many physical problems with the house.

6. Select an escrow company

Once your offer has been accepted and you sign a purchase agreement, escrow is opened. An escrow company is a neutral third party that works with the buyer, seller, agents, loan officers and other parties to your transaction to coordinate the obligations and paperwork necessary for closing. Your deposit goes into escrow, not to the seller or to one of the agents.

7. Understanding title insurance

A title insurance company conducts a title search to make sure the property is free of any legal claims against it. You will need to buy a title insurance policy that insures your lender for any loss caused by a discrepancy in title to the property. In addition, an owner’s title policy protects the buyer from title defects.

8. Obtain the proper homeowner’s insurance

Homeowner’s insurance is not only a good idea, it is also required by the lender. Homeowner’s insurance protects you and the lender in the event of destruction, damage, theft and liability.

9. Keep an eye on interest rates and on market values

After you purchase your home, if you have private mortgage insurance (PMI), make sure to petition to eliminate the mortgage insurance once your loan to value ratio is at 80 percent (ask your lender the requirements for eliminating mortgage insurance). If you have an adjustable-rate mortgage you are seeking to refinance, keep an eye on interest rates to determine if refinancing is right for you.

10. Attend a home buying fair

A home buying fair is a great way to get the information, tools and resources to become an informed home buyer. You will have the opportunity to meet and interview potential members of your home-buying team and attend educational sessions by real estate professionals.

*Special thanks to Angel Pacheco from Coastal Housing Partnership for this article and tips

Home Buying Fairs

As stated above, Home Buying Fairs are great opportunities for potential home buyers. A home purchase is primarily the largest purchase an individual can make. Being informed and knowing all the right steps can make for a smooth and educated purpose.

The next local Home Buying Fair will take place in Ventura:

Saturday, October 28th

Ventura Beach Marriot

10am- 3pm

For more information, visit www.homebuyingfairs.org.

Santa Barbara Home Purchasing

Tim Dahl has over 30 years of experience of helping buyers purchase homes in the Santa Barbara area. He has also been a residence in Santa Barbara for over 30 years. Tim is happy to help assist home buyers and can be reached at tim@timdahl.com. Please also visit www.TimDahl.com for more information.