Stepping into the CA Market

Beginners Guide to Stepping into the 

California Real Estate Market

Low-interest rates are driving Buyers back into the market. If you are a first-time homebuyer, an empty nester looking to downsize, a family dreaming of moving closer to the schools you want your kids to go to, or if you are ready to invest in rental property, this may be your time. 

Are You Ready to Find What Your Purchasing Power Is?

Meeting with a savvy Lender is your first step. Take the leap. Call a Lender and say that you want to buy a house and you need a Pre-Approval Letter. That’s the start of it all. 

We can refer you to someone that will be a great fit for you. They’ll ask basic questions about your income, your assets, and your financial obligations. That helps them find which loan programs will fit you best. You’ll discuss current interest rates, monthly payment, down payment, and closing costs.

With your consent, they’ll pull your credit report. This gives you a chance to review your current score and fix credit errors. They can even help you strengthen your score and advise you about ways to prepare your credit for the future. 

 After conferring with the Lender, it will be time to provide documentation for all the information you’ve shared. 

What You’ll Need to Gather for Your Lender

-Tax Returns for the last 2 years

-Bank statements from 2 months back (all accounts, all pages)

-W2’s,1099’s and statements of any other sources of income for the last 2 years

-Latest account statements of 401K, stocks, bonds, etc.

-Most recent paycheck stubs for at least a full 30 days

-Copies of a Photo ID and Social Security Card

-You may also be asked to provide court orders for Child Support, Divorce Decree, Bankruptcy documents, discharge papers, etc.

No need to shuffle through files to find most things. Many of these items can be retrieved online. Create a folder and start pulling it all together. Once the Lender receives your paperwork, they’ll be able to tell you how much house you qualify for and they will issue your Pre-Approval letter for that amount.

Get that Pre-Approval Letter to Your Realtor

As Realtors, we will help you manage your relationship with your Lender, but we don’t need to know the details of your financial life. We’ll never see your tax returns or your pay stubs or any of the other documents that you share with the Lender. We don’t have the same access to loan program information and interest rate data that they do. Our focus is on helping you to step into the current market as you are. 

Once your price range and your preferences are established, we’ll get started. You’ll have immediate access to any new listings that meet your search criteria. And we will guide you the rest of the way.

We just need that letter! Your Pre-Approval letter accompanies every offer. It proves to the Sellers that you are qualified to buy. We cannot move forward without it.

Whatever you do, don’t…

Once we’re out shopping for homes, the picture that you presented to your Lender must stay the same until the close of escrow.  

Don’t get behind on your payments.

Don’t move money around.

Don’t take on new debt.

Don’t change jobs.

Don’t deposit any cash into your accounts.

Don’t co-sign for a loan for anyone else.

Don’t spend your savings.

Don’t make big purchases like cars or furniture.

Don’t let anyone else pull your credit.

Don’t open or close any new credit card accounts.

This is important. We once had a deal derailed because a Buyer opened a new department store credit card to save 20% on a dress!

Big Transactions Can Trigger Big Emotions

Buying a house is a big deal with a lot of moving parts. After your offer is accepted it generally takes weeks to close. It’s fun and exciting but can be stressful. Gathering documents and reviewing credit reports can be a challenge for those who aren’t accustomed to facing their finances. Items from the past that you thought were long gone sometimes come to light on the credit reports and need to be addressed head-on. Don’t let that stop you. Shining a light on what needs to be corrected will set you free to move on to what is next. You will have expert support every step of the way.

Want more help getting started? 

We invite you to contact us with questions or share your thoughts via email.