In one of the most expensive and competitive markets in the country, the Bay Area home buyer has to be tough and ready, which is especially true for first-time home buyers. It’s not uncommon in the Bay Area, especially in the East Bay, for single-family homes to have multiple offers in the first two weeks. Why? Low inventory, high demand, and enticing mortgage rates equal a perfect storm for home buyers vying for the same properties. Because our market is so hot, we put together a quick blog post for first-time home buyers with tips highlighting the home buying journey.

 

“How much home can you afford?” This is one of the most asked questions in real estate. The average cost for a single-family home in the Bay Area is $880,000, but are you certain you can afford more, or is it better to search for less? Knowing your buying power will not only help you, it will help your real estate agent better serve you. Armed with your true buying power, you’ll help your agent save time and effort while searching for your dream home. Speaking to a lender and securing a pre-qualification is the best way to know for certain how much home you can afford. You wouldn’t eyeball a new refrigerator at the store, so why aren’t you measuring your home buying power!

 

One of the biggest hurdles in the Bay Area real estate market is reaching the 20% down payment threshold. However, there are multiple options available to homebuyers who may not be able to reach that goal. FHA-backed loans and private mortgage insurance can help lower the down payment to as low as 3%. In addition, it’s common for family members to gift funds for a down payment, especially in the Bay Area. Make sure you thoroughly document every windfall and cash gift!

 

The importance of using a local Bay Area real estate agent cannot be understated. The strongest representation often comes from the agent with the best local market knowledge. Fortunately for you, we have sold thousands of homes in Berkeley and the East Bay and we deal with these issues every day. It would be our pleasure to help guide you through the process so you can make the most informed decisions possible.

 

Closing on a home is a wonderful feeling, but the home buyer journey isn’t over just yet! The next few weeks will be filled with important tasks that require a keen eye for attention. One such task is to secure fire insurance for your new home. In fact, you should begin shopping for insurance right after escrow is opened. Make sure to send your new policy information to your escrow officer at least 5 to 10 days before the scheduled close of escrow. Only cancel the fire insurance policy on your older residence once escrow has closed. (You can also request a refund for the unused portion of the policy.)

 

Expect to receive your Grant Deed and Title Insurance policy within 6-8 weeks after closing escrow. Be sure to mail back the postcard included with your deed to apply for the homeowner’s exemption. Consult with your accountant and/or attorney regarding the best way in which to take title to your new home. This is very important and should be done well in advance of closing escrow.

 

Notify utilities to place service in your name in your new home and to cancel service in your old home. Both these changes should be scheduled for the day of close of escrow, or the first day of occupancy.

 

There is a lot to learn about buying a house, and many steps to take, ranging from choosing financing options, investigating schools, learning about the East Bay neighborhoods, conducting home inspections, and understanding the purchase contract. Our real estate agents are among the best and brightest in the industry, keeping pace with updated technology and the ever-changing marketplace and practice of our craft. Contact a Marvin Gardens real estate agent today!