Lifestyle, Housing Needs & Budget

Before choosing a home, it’s important to consider your lifestyle, current and future housing needs, and overall budget. Creating a prioritized list of features can help guide your search and keep expectations realistic. Most buyers quickly learn that finding the right home means balancing must-haves with nice-to-haves.

Think about how you live day to day:

• Love to cook? A well-designed kitchen may be essential.

• Enjoy gardening? You’ll want outdoor space.

• Work from home? Dedicated office space is key.

• Have multiple vehicles? A larger garage may be a priority.

Use this list as a roadmap for your home search.

Future Needs, Length of Stay & Location

Next, consider how long you plan to stay in the home and how your needs may change over time. A school district may not matter now, but it could in the future. If you have aging parents, you may want a home that allows for flexible or multi-generational living.

Location matters just as much as the home itself. Beyond commute times, think about what’s important to you in terms of convenience and accessibility, including:

• Shopping and dining

• Medical facilities

• Schools and childcare

• Police and fire protection

• Traffic, parking, and public transportation

• Parks and recreational amenities

Let Me Help

Let’s talk about where you want to live and what matters most to you. While many buyers start their search online, I add value throughout the entire home-buying process. I analyze market data, answer questions, provide local insights, and manage the paperwork and details—so nothing gets missed.

By sharing market trends and neighborhood knowledge, I can help you narrow your choices and move forward with confidence.

Tip: It’s also important to consider the type of home that best fits your lifestyle and budget. Options may include a condominium, co-op, townhouse, or single-family home. You’ll also want to think about construction style, exterior materials, and whether you prefer a new home or an older property.

Now that you know what you’re looking for, the next step is figuring out what type of home you can afford. A review of your income, savings, monthly expenses, and debt will be necessary.

Get Pre-Approval

Early in the process, you’ll want to get pre-approval for a mortgage loan. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you can finance through a loan and what your monthly payment will be.

Documentation for Pre-approval

Most lenders will need the following items to get the pre-approval letter:

• 2019 and 2020 W2s
• 30 days pay stubs
• Recent bank statements

If you are self-employed, you will need the last 2 years’ federal income tax returns with all the pages and schedules (federal 1040 form).

Criteria for Pre-Approval

The price you can afford to pay for a home will depend on several factors, such as:

• Gross income
• The funds you have available for the down payment, closing costs, and cash reserves required by the lender
• Your debt
• Your credit history
• The type of mortgage you select
• Current interest rates

Another figure that lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment, property tax payments, and insurance premiums on your new home loan (also known as PITI).

Each buyer is unique, and a mortgage professional can help you find out just what you can afford. Your income and debts will typically play the biggest roles in determining your price range.

Check Out the Neighborhood

Evaluating the neighborhood and surrounding areas is just as important as the home itself. When you buy a home, you’re investing in a community—one where you’ll spend time, build connections, and support local schools, organizations, and businesses.

Before making a final decision, take a close look at the location to be sure it fits your lifestyle. Consider the following:

• Proximity to daily essentials: How long is your commute? Are hospitals, schools, childcare, shopping, family, and friends nearby?

• Transportation options: Does the area offer public transportation, carpooling opportunities, or alternative commuting options? Take a few test drives at different times to understand what daily life will feel like.

• Overall comfort: Visit the neighborhood at various times of the day and on different days of the week to observe activity levels, traffic, and noise. An informed buyer is a confident buyer.

How I Can Help

I’m a valuable resource when it comes to understanding neighborhoods. I can provide information on schools, shopping centers, parks, and other amenities that matter most to you. Buying a home isn’t just about the property—it’s about the lifestyle that comes with it.

Tip: Take time to research and understand the local school district. Even if you don’t have children now, school quality can impact both your future needs and the long-term value of your home.

Buying a new home and selling an existing home at the same time has its own set of challenges. And with knowledgeable planning, you can ensure everything goes smoothly.

Do Your Homework

Before putting your house on the market or committing to buying a new one, first, take a look at the prices of houses in the areas where you’ll be selling and buying. You’ll need a realistic idea of sales prices for similar houses, so you can assess both your buying and selling position.

What Type of Sale

Then, decide what type of sale will it be.  Will you buy, move into your new home and then sell? This would be the most relaxing option if you can afford it. Or will you do a contingent sell?  This means that you are selling your home contingent on finding the replacement home and having both escrows close roughly at the same time.  This option is the most challenging and stressful transaction. 

What if you’re unable to time the sale of one house with the purchase of another? You may own no houses for a time, in which case you’ll need money in the bank and a temporary place to live. Or, you may own two houses at once. That’s why it’s important to have a backup plan. Here are some options to consider:

• Research short-term rental and storage options (family, friends, storage facilities, containers).
• Bridge financing (a short-term loan) for the down payment on a new home backed by the equity in your old house.

Buying a Second Home

Buying a second home isn’t all that different from buying your first home. Similarly, your ability to qualify for a second mortgage depends on the loan qualification.  Benefits for having a second home include a vacation home, a future retirement home, or a rental home.

Certainly,  if you declare it as a rental, your mortgage might be slightly higher and your down payment requirements higher than a standard mortgage. More importantly, work with your lender to create a customized loan program with the best combination of rate, points, and closing costs to meet your needs.

TIP: A second home can be a good investment. To make the most of the opportunity, be sure you factor in sources for your down payment and monthly expenses (including the costs of maintaining the property).

I can help you find out what other homes have sold for in the area, and how much money you might have to put into repairs or renovations. These considerations should be a factor along with the amount you’re comfortable spending. As important is to know what you are competing against.  In a sellers’ market, normally you have a bidding war.  I’ll contact the listing agent to gather as much information as possible.  For instance, how many offers they have, a general price for the offers and factors that are important to the sellers.

Keep in Mind

In addition to the sale prices of other comparable homes and information gathering, there are several ways you can come up with a winning bid. For example:

• The condition of the house. Is the home in move-in condition, in need of paint and other cosmetic improvements, or a fixer-upper that needs real work?
• The market. If you are in a buyer’s market — where there are more homes for sale than there are people to buy them — prices are probably stable or falling. If you are in a seller’s market — where there are more buyers looking for homes than there are homes for sale — prices are probably moving upward.
• Your ceiling. If you have a credit pre-approval, you know how much you can borrow for your home purchase. Of course, you may not be comfortable paying as much as you’ve been approved to borrow, so think carefully about your financial situation before making an offer.

Next, decide how much you are willing to pay for a home. Remember, the advertised price of a house is just a starting point – it may take quite a bit of negotiating to arrive at a final cost.

TIP: The value or disadvantage of certain features can help or hurt resale. In some areas, a swimming pool actually detracts from a home’s value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may affect the home sale and future value.

Once you’ve made the decision to become a homeowner and picked the house, most likely you’ll need to apply for a loan. This process might seem daunting, but your lender will guide you through it. The process will be even easier if you know what to expect and prepare for it.

Lending Overview

Here are the high-level loan application steps:

• Prepare required documents:
  • Two years of employment history, current employment status and salary are needed. Employment letters can be used to explain gaps in employment.
  • Two years of W-2s (this does not apply if self-employed) and tax returns allow the lender to be sure that your salary is high enough to make the mortgage payments every month.
  • Most recent pay stubs for the last 30 days tell the lender that you’re still earning money similar to the amount on your tax returns. (This does not apply if self-employed, but the lender will likely require a profit and loss statement.)
  • List of assets, including bank statements, let the lender know that you have the money to cover the down payment, closing costs and a reasonable emergency.
• Submit the application. Once you’ve prepared the required documents, the first step with the lender is to apply for the home loan. Of course, you will need to provide personal information, as well as information about the property you’ll be purchasing, such as the address and estimated purchase price.
• Provide your documents. Submit your documents, such as pay stubs, W-2s, bank statements and employment history.  Tip: Did you know that some lenders, allow you to provide your required documents digitally, even uploading directly from your mobile device?
• Get pre-approved in as little as 24 hours. Once your loan application is submitted, you should receive your pre-approval letter in as little as 24 hours.

Congratulations! You’ve made an offer and reviewed all the documents the seller has provided regarding the condition of the home. But, one important step before you finalize your real estate offer could help you avoid costly home-buying mistakes and that is the home inspection.

Home Inspection

Hire a professional home inspector to give the house a standard inspection that includes:

• Room-by-room review
• Exterior home components
• Electrical systems
• Foundation and structural components – both interior and exterior
• Heating/air conditioning systems
• Plumbing systems
• Attic/basement/crawl spaces

Once you have arranged for a home inspection, plan to accompany the inspector for the last hour of the procedure. You have the right to be there, and leading home inspection companies will encourage your presence. It helps you to better understand the findings in the report and will reduce post-closing surprises. Don’t forget your list of questions and items of concern.

A thorough home inspection covers more than 1,000 items, everything from foundation to roof, and takes two to three hours depending on the size and age of the property. The report should reflect the condition of about 400 items. A typical inspection can range from $300-$600

Home Inspection Findings

Some common items a home inspection could uncover are:

• Maintenance problems such as rotting decks, paint chips, water damaged ceilings, etc.
• Electrical problems (even faulty fuses can lead to bigger difficulties in the future)
• Drainage problems, which could include water intrusions below the home
• Roof leaks and defects from aging
• Poor ventilation, especially in an attic; this is the time to assure that all vents are clean and working properly
• Excess air leakage due to poor weather stripping and subpar caulking around fixtures
• Failed window seals, which are routinely found with dual pane windows
• Environmental contamination caused by asbestos, mold, formaldehyde, lead paint, radon, soil contamination, and/or water contamination
• Faulty lines in water heaters, overflow piping, and/or hazardous flue conditions

TIP: Structural damage caused by water seepage into the foundation, floor joists, and door headers should be discovered at the source, and can be easily identified with a home inspection.

Protecting your new home with insurance is a must. How well you do that depends on the details of your policy. And while you are not required by law to have homeowners’ insurance, mortgage lenders require that you do.

A standard policy will suffice in most instances. It protects against several natural disasters and catastrophic events. However, it will not guard against earthquakes, floods, war and nuclear accidents. The policy can be expanded to include these disasters as well as coverage for such things as workers’ compensation. In fact, the lender may require that you purchase flood or earthquake insurance if the house is in a flood zone or a region susceptible to earthquakes.

Replacement-Cost Endorsement

You can also cover the depreciated value of personal property, such as televisions and furniture, by purchasing a replacement-cost endorsement. This is an extension of coverage that can enable you to replace the item with one of comparable material and quality.

Closing can also be referred to as settlement or escrow. In CA, it is called escrow.  I will guide you through the closing process.

Clear Title & Met Conditions of Sale

In advance, a title company is usually hired to conduct a search for any recorded documents that affect the deed to the property. Examples include easements, liens, tax assessments, covenants, conditions and restrictions, and homeowner association bylaws. The buyer and lender must approve the preliminary title report prior to closing.

Once the conditions of sale have been met and the preliminary title report has been approved, all parties will agree to sign closing documents. The preliminary title report then becomes the final title report, on which any applicable title insurance is based.

Down Payment, Closing Costs and Funding

If everyone agrees that the papers are in order, the buyer submits payment to cover the closing. If the lender will be paying your annual property taxes and homeowners’ insurance for you, a new escrow account (or reserve) is established at this point.

Finally (and here’s the best part) you receive the keys to your new home!

TIP: After the documents have been signed, notarized copies will be forwarded to the lender, funds will be released, and the sale will be recorded at the local recorder’s office. This legal transfer of the property may take a few days. It is at the point of deed recordation that you become the official owner of the home.I

6 to 8 weeks prior:

• Purchase or rent moving supplies: tape, markers, scissors, pocketknife, newspaper, blankets, moving pads, plastic storage bins, rope, and a hand truck. Free boxes can usually be obtained at a local supermarket, but consider purchasing wardrobe boxes for clothes.
• Have a garage sale to clear out unwanted items and plan accordingly. Consider donating unwanted items.
• Keep a detailed record of all moving expenses. Your costs (and donations) may be tax-deductible depending on the reasons for your move.

2 weeks prior:

• Hire a reputable mover or rent a moving truck. Be sure to get referrals or references, check with the Better Business Bureau, get estimates and purchase moving insurance.
• Two weeks before moving day, contact your telephone, electric, gas, cable/satellite, refuse and water companies to set a specific date when service will be discontinued. Contact utilities companies in your new town about service start dates, including Internet and telephone services.
• Notify healthcare professionals (doctors, dentists, veterinarians) of your move and ask for referrals and record transfers.
• Register children for school and ask for school records to be transferred.
• Notify lawn service, cleaning and security companies when service should be terminated.
• Advise the post office, publications and correspondents of change of address and date of move.
• Check your homeowners’ insurance and make arrangements for new coverage.

Moving day:

• Have tools handy for breaking down beds and appliances.
• Give every room a final once over. Don’t forget to check the basement, yards, attic, garage and closets.
• Have the final payment for the movers and money for a tip.
• Don’t forget to check in with me –I may be able to provide useful local advice and/or referrals.

TIP: Move valuables (jewelry, legal documents, family photos and collections) yourself – don’t send them with the moving company. Make sure you have a complete home inventory of all your possessions.