What to Consider While Buying a Home in California

Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.

Pre-Approval: While knowing how much you can afford is the first step, home sellers in real estate will be much more receptive to potential buyers who have been pre-approved. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, the seller knows immediately that you are a serious buyer. Costs for pre-approval are generally nominal, and lenders will usually permit you to pay them when you close your loan.

List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary.

Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.

Focus & Organization: Keep handy the items that will assist you in maximizing your home search efforts — detailed maps of your areas of interest, a file of properties your agent has shown you, paper and pen for taking notes, and a camera to help refresh your memory on individual properties.

Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to shopping, parks, and freeway access?

Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don't make a hurried decision that you may regret later.

Be Thorough: Include inspection and mortgage contingencies in your written offer. Has the property been inspected by a professional inspector? Request a second walk-through to take place within 24 hours of closing.

Buying a home is one of the most important purchases most people will make. Consider the following before starting negotiations:

• Why is the homeowner selling? (If they're moving because they find the area undesirable, you might want to consider this.)
• How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property you need to know.)
• How much did the seller pay for the home compared to the current asking price?
• What is the seller's time frame for selling and moving? Does it fit your needs?
• Are there any defects in the home or problems with the surrounding neighborhood?

Do not let the seller see how much you want the property. If you appear desperate or overly enthusiastic, the seller then has a stronger bargaining position. When meeting with the seller or listing agent, keep your emotions in check.