With its strong economy, low unemployment rate, and many best-quality schools in the nation, California is a good place for a young professional to start a career. That’s why, in the San Francisco Bay area alone, home prices have hit record highs, with an average home selling for more than $800,000. Even in areas like the Central Valley, land and home prices have never been higher. Home prices are expected to remain strong for some time, but it doesn’t mean you shouldn’t invest in real estate in California. The economic climate and increased housing prices make it harder for young professionals to buy a house in California. If you cannot boast of a high and stable income, then buying a house or condo in California is difficult. Luckily, there are many a lot of tricks to help you become a homeowner in California. In this post, we will look into where to start when buying a house in California.
Short Guide to Buying a House in California
Moving to California can be extremely daunting if you don’t have a healthy financial position. This is why following a specific course of action is of utmost importance to have a smooth and stress-free move.
Buying a house is not as easy as it seems. Whether you are buying a home in a single-family home or an apartment complex, you need to make sure the home is in your price range. You also need to ensure that you have enough money to make a down payment on the home and cover the closing costs. There are also certain rules to follow when buying a house, and they are outlined below.
Know the Location
If you want to buy a home in California, it is important that you know the area you are buying the home. A big part of this is knowing the zoning. The zoning on a property is the set of rules the city or town makes for building. For example, certain parts of the city will allow certain homes to be built, while other parts do not allow homes. If you have already decided on a location and are looking for Manteca homes for sale, then we recommend checking all the available real estate objects online to understand the market.
Look for the Right House
It is important to find the right home for your needs. Whether you have a big family or live just with your dog, you need to ensure the home you buy has the space you need. While the number of rooms, the condition of the kitchen, and the size of the yard are important, there are other factors to consider before making an offer and moving. To make the right decision, you also need to look into a house size, floor plan, and curb appeal, check out local community life, and consider noise levels.
Keep an Eye on Interest Rates
The thing is that interest rates are determined by the type of mortgage you get. Thus, if you choose a floating-rate mortgage, the size of your mortgage payments can fluctuate alongside interest rates. However, when it comes to a fixed-rate mortgage, your rate is locked in, regardless of the direction interest rates move.
Small differences in the interest rate you can secure can quickly add up. Thus, over ten years, a 4.125% interest rate will save you more than $44,000 compared to a mortgage rate that is a half-point higher. Therefore, keeping an eye on interest rates is important to ensure you choose an appropriate mortgage when you’re ready to buy.
Research the Home
When buying a house, knowing what you are getting is important. When you first walk into a house, you should look at the floor plan and ensure you can fit your family in it. You should also consider what appliances are in the home, if there is a pool, or if the yard is suitable for kids, pets, gardening, or other uses, etc. Look at the site of the home, and be sure the neighborhood meets your expectations, check closets and storage, look at the views and lighting from the windows in living spaces. All this will help you pick a house you and your close ones will comfortably live in.
Find the Best Homeowners Association (HOA)
There are certain rules in every community. For example, you may need to pay dues for the HOA used to cover the maintenance of the community. In addition, you may need to pay the fees to use the pool or certain amenities in the community. By reading the rules and regulations for a community, you can make sure you know what is/ is not allowed and understand how much it will cost you.
Make a Contract
After you have decided on the location of the home you want to buy, the rules you want to follow, and the price range you can afford, you can make an offer on the property. The next step is to sign the contract. This is when you agree to the terms of the house, and you and the seller agree to follow the conditions and guidelines. This is actually the final stage of the home-buying process.
Wrapping Up
Buying a home is a lot of work, but it is a good investment in the future. Make sure you are prepared for the next step in your journey to home ownership. Stick to the above to boost your know-how and confidence on your exciting journey toward home ownership.