A Step by Step Guide to Buying Your First Home

Buying a home for the first time can be a confusing and daunting experience.

You may find yourself overwhelmed by the many things you have to do, and in the process make mistakes that may cost you more than you originally planned for.

It’s essential that you know what to do and who to turn to, so I’ve prepared a 10-step guide to help you buy your first home.

Check out the different topics included in this home buying guide.

Step 1. Determine if you’re ready to be a homeowner

Owning a home is an all-American dream. It's also a major milestone towards the world of adulthood and financial responsibility.

Are you ready to be a homeowner?

Because it's a decision that takes months of planning and preparation, here are some signs that indicate your readiness.

Signs You're Ready to Be a Homeowner

1. You are financially stable. One of the best indicators you're ready to own a home is your finances. You need a steady source of income that will help you save for your initial deposit, cover your monthly mortgage and still allow you to live a comfortable lifestyle. Experts recommend that your mortgage costs no more than 20 to 30% of your monthly income.

A home purchase is one of the biggest financial investments you'll make, and it can put you in a financially dire situation when you're not prepared.

2. You've saved enough down payment. Do you have enough money saved for a down payment? A home sale requires a down payment. Depending on the loan type, the down payment can range from 3.5% -20% of your home's purchase price. The larger your initial payment, the smaller your monthly mortgage payment.

3. You have strong credit. This three-number score is essential in securing a mortgage. If you're rocking a good score, you can secure a better interest, which can save you thousands of dollars in interest payment.

A strong score takes time to build. If you plan to buy a home in Pleasanton this year, you should have started building your credit score last year.

Making payments on all tradelines on time helps boost your credit score. The same goes for avoiding large purchases months before you have your credit score checked.

If you have no idea what your credit score is, now is the time to find out. The Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting company.

4. You plan to stick around. Buying a Pleasanton residence means you’re planning to keep your home at least 2-years or more.  Longer is great, so give this some consideration.

You’ll not just be committing to the property, you’ll commit to the neighborhood and the larger geographic location as well. So love where you choose to live!

5. You're prepared for home maintenance. Homes require maintenance to continue functioning well. Repairs are inevitable, so you should at least have basic skills to handle minor fixes and flaws or be prepared to hire someone if you are not so skilled in these areas. If this is not your forte’, your Real Estate Agent can offer you names of tried and true professionals to assist in times of need.

Step 2. Get Pre-Approved

You've probably been looking at various homes online, thinking you can afford them.

Before you make the mistake of fixating over a certain type of home or on certain features you want in a home, you need to know what you can really afford.

Knowing your budget gives you realistic expectations, allowing you to choose a home that's right and within your financial range.

To get an idea of how much you can possibly qualify for, you can get a prequalification or preapproval from a reliable lender. Again, your chosen Real Estate agent can give you names of  experienced, professional lenders that will take the best care of you.

It's a quick process where you provide the bank or the lender with your financial information, like your income, assets and debt. It can be done online or over the phone. After a simple evaluation, the lender can give you an great idea of how much home you qualify to purchase!

Getting a pre-qualification is helpful, but it's not the same as getting pre-approved.

Having an idea of how much you can afford is different from knowing exactly how much you can spend. 

My advice is to get a pre-approval.

A pre-approval is a more in depth evaluation of your finances by the lender.

With a pre-approval, the lender will do an extensive check on your financial situation and current credit rating. The lender will also tell you the specific mortgage amount for which you are pre-approved. It holds a heavier weight over a mere pre-qualification.

How do you get a pre-approval? Which lender will you choose? Again, your chosen Real Estate professional can help you choose the right Mortgage profession to assist you.

Here are the advantages of securing a pre-approval. 

It tells you exactly how much mortgage you qualify for. Knowing how much you can afford helps streamline the properties you seek out. This way, you don't waste time looking at homes you'll just end up pining for because they are out of your budget range.

It increases your negotiating power. When sellers know that you've been pre-approved, they'll take your offer more seriously. It boosts your ranking in a pack of potential buyers because the seller thinks that your offer is much stronger than the others.

Let’s hear what HGTV has to say about budgeting for home buying.

Step 3. Hire the right real estate agent.

Purchasing a home is a big investment, and you need the guidance of a full-time, in-the-trenches, so-to-speak, agent. You need someone who’s got your back, someone who'll look out for your interests, someone who'll prioritize your needs and someone who'll listen. In other words, you need more than a good real estate agent, you need an excellent real estate agent like me, Rhonda Fee.

How do you find the best real estate agent? It takes some effort and legwork, but the results are worth it.

Here are four steps you can do to ensure you'll pick the best one out of hundreds of Pleasanton real estate agents.

1. Search online. Everything is done online these days, and the same applies to looking for an agent. An excellent agent has a strong online presence, as well as a good track record. Online reviews left by former clients can give you an idea of how the agent works.

2. Ask for referrals. Don't be satisfied with what's available online. Ask for referrals from your family and friends. Ask people you know who have sold homes.

3. Set an appointment. You want an agent you can trust, and that can be difficult online or over the phone. The best way to find out if you can work well with the agent is to meet her. Make an appointment and sit down for an interview.

4. Have a prepared list of questions. You are not meeting with the agent just to establish friendship. You are meeting so you can see if he or she can give the answers you need. Having a prepared list of questions is helpful so you won't forget any important questions.

What are some things you should be asking? Since it’s quite easy for a consumer to find properties themselves, ask some tough questions: Take a look at some of the suggestions below:

> How long have you been in real estate?
> How long have you been working as an agent in Pleasanton?
> Do you work fulltime or part-time?
> How do you set yourself apart from other agents in a difficult market?
> In a multiple offer situation, what strategies do you use to help me?
> Please explain your fiduciary duty to me? What does that entail?
> How might my earnest money deposit be protected if I change my mind during the process, once we are in escrow?
> Does the seller have a right to change their mind once we are in contract?
> Do you continually educate yourself on current obstacles in the real estate market? If so, how?
>Have you ever had a dispute that ended up in mediation?
>Do you have an attorney at your fingertips should we need legal advice?

Sitting down and asking these questions will help you gauge which agent you can work best with.

Check out what my previous clients have to say about me here : http://HomeValuesPleasanton.com/Testimonials/.

Step 4: Find a home

You’ve secured a pre-approval and you now  have an amazing REALTOR®. You’re ready for the most exciting step - Choosing a home.

There are so many decisions and considerations before you can pick out the right home.

How do you find the right home? Do you just base it on the price? How about the location? Should you also factor in the finishes?

All these questions boggling your mind can make it challenging to find the right home.

Take a look at these 3 factors you should consider in choosing a home

Price. Your top consideration in looking for a home is price.

Pleasanton real estate market has homes at different price ranges, but you have to find a home that's within your budget range. You want a home that will keep your mortgage payments at a minimum.

Location, location, location! You've heard this before, you'll hear it again.
Your home's location is essential in living comfortably and conveniently. It is influenced by the kind of neighborhood it belongs to and by the amenities surrounding it. If you have kids, you may want to consider finding a property near schools. How far or how close is it to your workplace?  Having shops, dining options, and hospitals within driving distance are also good points to factor in your search for the right location.

Type of home. What home are you seeking? Are you looking for a single-detached home, a condo, a townhouse or maybe a patio home? Do you want a home near the city center or on the outskirts of the city? How large do you want it to be?

Consider your needs and wants. The home should have the type of floor plan you desire. It must also have the number of rooms needed to accommodate everyone in your family comfortably.

The right home will speak to you. When you step inside the front door, you’ll know right away that it is the home you’ve had in mind.

Here’s a great tip : Make a list of wants and needs. The “needs” column will have all the things you need to live comfortably, and the “wants” column will contain amenities and finishes that are good to have, but are negotiable.

Let’s watch HGTV’s house hunting tips for first-time buyers.

Step 5: Get a mortgage

You’ve found “the one”! It’s now time to secure a mortgage.

This part should be easy enough because you’ve already gone through the trouble of researching the lenders, learning about the various mortgage loans available for you and comparing loan terms and payment.

If you haven’t found the mortgage lender to work with, here are my top tips to find the best one :

Research on the different mortgage lenders. You want to find a lender that offers a good loan program with low interest rates. Searching online and asking for references from family, friends, coworkers and your real estate agent can help you find the best lender.

Mortgage broker or mortgage banker. Do you need a mortgage broker or a mortgage banker?

A mortgage broker can help you easily find various lender programs and guidelines. They are convenient to use and they handle the requirements with expertise.. You may encounter mortgage brokers who'll set you up with a lender just because they'll receive a higher commission, regardless of whether you'll be asked to pay a higher interest. This is why recommendations are very important.

A mortgage banker is like a loan officer. He or she works in the bank or lending institution and will guide you in choosing the most suitable loan option for your budget they they personally offer.

Ask questions. When you've created a list of possible lenders, set up an interview with your top three. Prepare your questions to know if their services are what you want.

Don’t make up your mind just yet. Get a loan application from three different lenders. After two to three days, you’ll receive a breakdown of the loan terms for which you qualify. This can be known as a Good Faith Estimates.

Compare the different options available to you. Once you’ve found the lender which has the best loan terms and rates, secure a pre-approval.

Step 6: Make an offer - and get it accepted

Making an offer is not as easy as you stating an amount, the seller accepting the amount, and ending it with a handshake.

It's a little more complicated, and having my expert help will really make things easier for you.

The first thing you have to settle is the price. We'll be working together to decide on the offer based on similar properties in the area.

Your offer letter, will include terms & program you intend to use. If the seller likes your terms, it may be accepted. If he has multiple offers, a Seller Multiple Offer Counter may be sent to several buyers at one time.

When both parties have come to an agreement regarding the terms, the property will go into escrow and stay there until all the steps of the home buying process have been completed.

Step 7: Get a home inspection and a home appraisal 

Whether you’re buying an almost new home or one that’s been around for a long time, you’ll need a home inspection. The home inspection is your best protection. It will tell exactly what you’re buying.

If there are any repairs you’d like to ask the seller to complete, during the inspection contingency period is the right time to negotiate.
However, you should also be reasonable. Don’t expect the house to be perfect.
You just want the most important things taken cared of so you can move into the house with fewer worries.

In a seller’s market, such as we are currently experiencing, it may be best to accept the home in its current condition unless there is something of extreme expense that you cannot undertake.

A home appraisal will be required by your lender to ensure they are loaning based on a fair market value of the home you are buying.

In case you want to buy an old home, here’s a video from HGTV which will help you know some good tips to embrace and pitfalls to avoid.

Step 8: Get an insurance

Another step the lenders will require you to take is to get home insurance.
This is one way they can protect themselves from accidents like fire and some other risks.

Aside from your home, you can also insure any other structures in the property like the detached garage and storage shed, your personal property, your family, and more.

Step 9: Sign Closing Documents

You’re almost there!

This step is where all the necessary documents related to the home purchase are collected and updated, signed and notarized.

All you’ll need to do is to review the mortgage documents. I can help you do that during the signing appointment.

Step 10: Closing

This is it! This is the last part of the home buying process. This is where the final documents are signed, and the cashier’s check is transferred from your hand to the seller’s hand, via the escrow account. Once the new deed has been recorded with the county, you are truly a homeowner!

Congratulations! Your next step is to move in and enjoy your property.

Buying your first home can be a difficult experience, but when you have my help, you’ll know what to do and when to do it. This step by step guide already laid down the essentials of the home buying process, making things easier for you.

I am Rhonda Fee, your Realtor® here in Pleasanton CA. Call me at 925-200-0827 and let’s discuss how you can buy your first home.

In case you cannot view this video here, please click the link below to view A Step by Step Guide to Buying Your First Home on my YouTube channel: https://www.youtube.com/watch?v=4Lx4oblDbjw&feature=youtu.be

Top 5 Outdoor Improvements That Will Add Value to Your Home

Boost your home’s resale value

Thinking of home improvements? If you are planning to put your Pleasanton CA home up for sale, or you just want a better looking home, you may want to consider getting outdoor improvements.

Outdoor living is a popular trend, and it has shown no signs of slowing down. People love having outdoor living spaces, a private space where they can retreat, relax, and entertain. Next to energy efficiency, outdoor upgrades is one of the home improvements buyers look for.

The best thing about outdoor improvement? It can be done with minimal cost, yet you get to enjoy a high return of investment. The NAR (National Association of Realtors®) 2016 Remodeling Impact Report : Outdoor Features  report a 100% in cost recovery.

Outdoor improvements with the highest ROI

Before you start thinking of getting a pool, installing a deck and a few other outdoor upgrades you’ve seen on TV, you should know that not all improvements have high ROI.

Some upgrades yield a lower percentage recovery. You need to know which upgrades can add the most value to your home.

Here are the top 5 outdoor improvements which will boost your home’s ROI.

1. Improved landscaping and gardening. Buyers perceive homes with landscaped front and backyards, gardens with flowering plants and trees have a higher value compared to homes with just a front lawn.

If you are selling your Pleasanton home, a basic upgrade you can do is to add flowering shrubs in your garden or pathway. When you want something low maintenance, opt for native plants or drought-tolerant plants available in your area. Adding a tree near the window will not only bring your home shade, it will also help keep the home a little cool especially during the summer.

Replacing your pathway with a flagstone walkway also enhances the curb appeal. Incorporating at least two large stone planters further enhance the outdoor appeal. Do you know that this improvement alone can add up to 10% on your home’s value?

2. Put up some lighting. With the proper lighting, the home comes alive. Once you’ve finished with the landscaping, show it off even at nighttime by installing electric or solar powered spotlights. Lighting also helps increase a home’s security, giving you better peace of mind.

3. Consider installing a patio. Many homes for sale in Pleasanton have patios, and if you have none, you may  consider getting one. The patio transforms the backyard into an enticing outdoor living space. Furnish it with several comfortable outdoor chairs and you now have a relaxing outdoor space.

4. Create an outdoor room by adding a pergola. Make your patio more exciting by adding a pergola. A pergola dramatically enhances a backyard’s look. It also allows for more shade and a perfect way to hang greeneries.
5. Add a fire pit. To complete your relaxing outdoor oasis, add a fire pit or an outdoor fireplace. On those rare chilly nights, this is the perfect spot to hang out with family and friends.

But you don’t need chilly nights to use the fire pit. You can also use it for roasting marshmallows, chicken tacos, and sausages. You don’t have to get the most expensive one either. Even the budget friendly ones will do, as long it serves the function for your summer soiree.

These outdoor improvements will definitely make you want to stay in your home a little longer. If you are selling your Pleasanton home, the new owner will surely thank you for creating a wonderful and relaxing space for them to enjoy.

Which ones are you going to do on your backyard?

Call me, Rhonda Fee, at 925-200-0827. Let me make your home selling transaction a smooth and stress free journey.

You can also check out my website http://HomeValuesPleasanton.com/ to learn about homes for sale in Pleasanton. 

In case you can not view this video here, please click the link below to view Top 5 Outdoor Improvements That Will Add Value to Your Home  on my YouTube channel: https://youtu.be/rqfkA4b3edM

What are the Closing Costs of Buying a Home in Pleasanton CA

Don't forget the closing costs

Buying a home is exciting but also nerve-racking, especially for first time buyers. If you are buying a home in Pleasanton CA, you are probably thinking about the initial down payment and the monthly mortgage payment you have to make. But there is one thing that many first time home buyers neglect to prepare for, and that is the closing costs.

The closing costs are the fees and charges you pay for your mortgage loan. It is generally between 2-5% of the purchase price. In Pleasanton CA, the closing cost of homes for sale can set you back, on the average, at least $3,700.

Before you can truly own a home, you have to figure out your closing costs. Ideally, your mortgage officer will give you a Loan Estimate which should help you know how know approximately  how much will your closing cost will be. There are also several online calculators which can give you an idea of the closing costs for your home.

What are the usual fees included in a closing cost?

You can basically categorize closing costs into two types - the recurring and the non-recurring costs. The recurring costs are, as the name suggests, expenses you'll have to make a regular payment. The non-recurring costs are one-time payments you only Shave to make to get the loan.

Under prepaid costs, you have to pay the following :

• INSURANCES - You have to secure some insurance when you buy a home. It includes the private mortgage insurance, fire insurance and  flood insurance.

• REAL ESTATE TAXES - This is the tax you will have to pay the government, and it is usually prorated between you and the seller, depending on when the closing takes place.

For recurring costs, the following items are included :

• APPRAISAL FEE. Before your mortgage loan is approved, the home or property you are buying needs to be appraised by a professional lender who will assess the value of the home. In most cases, the lender will require an appraisal from someone of their own choosing. They will not use the appraisal some seller’s sometimes provide. The result of the appraisal will help the lender decide how much money they can loan you. The appraisal fee is usually paid out of closing costs.

• TERMITE INSPECTION FEE - Termite treatment and damage repair is expensive, so most lenders require a termite inspection because they are protecting their investment, the money that they are loaning you to buy the house.

• SURVEY FEE - Like the appraisal and termite inspections, the lender may also require a survey for the property. Usually, this is part of the borrower's fees, but you can negotiate it be paid by the seller.

• HOME INSPECTION FEE - You'll be asked to get a home inspection to verify the condition of the property and see if there are repairs that are needed.

• FLOOD ZONE CERTIFICATION FEE - This is in payment for verifying that the property is located in a flood free zone.

• ATTORNEY - Attorney fees differ from state to state and depend on the attorney that is chosen. Some charge per hour, others charge on a flat rate.

• ORIGINATION FEE- This is charged by the lender to cover the administrative costs of making a loan.

• APPLICATION FEE - Also referred to as the lender's processing fee.

• UNDERWRITING FEE - Whichever lender you choose will have an underwriting fee. It covers the research of the mortgage company checking to see if you are approved for the loan or not.

• CREDIT REPORT - The lender will be checking your credit history to see if you will be approved for a loan, and for how much.

• DISCOUNT POINTS - These are paid to the lender for a lower interest rate. This fee buys you a reduced rate so you have a lower monthly mortgage payment.

• TITLE SEARCH - In buying a home, the lender must search for public records of the property you are buying to see if there are unsettled mortgage payments on the property.

• TITLE INSURANCE - This is paid to the lender to insure ownership of the property.

• RECORDING FEES - This is among the government fees you have to pay for recording the real estate purchase.

• TRANSFER TAXES  - Is another government fee for transferring the property to you.

All these costs can be overwhelming, but that is the price you have to pay to be a homeowner. To make things easier to understand, setup an appointment with your mortgage officer and discuss all these costs and see which ones you can ask the seller to help with. help payment from the seller.

For more home buying or selling information, visit http://www.HomeValuesPleasanton.com/.

Planning to buy a home in Pleasanton? Call me, Rhonda Fee, at 925-200-0827. Allow my extensive experience as a REALTOR® help you find the home of your dreams.

In case you can not view this video here, please click the link below to view What are the Closing Costs of Buying a Home in Pleasanton CA on my YouTube channel: https://www.youtube.com/watch?v=a0o2MqggtPM&feature=youtu.be

How Does Rhonda Fee Arrive at My Home’s Estimated Value?

As a home seller, you want to be sure that your home is priced right before you list it. The last thing you want is to leave money on the table, or overprice your home. Doing any of these two things will lead to more problems, and you already have enough challenges and concerns on your plate.

To find out how much your Pleasanton CA home is worth, the best and closest price you can find for its market value will be from a real estate agent, or a REALTOR® like me.

How do I come up with your home's estimated value?

Real estate agents determine your Pleasanton CA’s home value by doing a comparative market analysis. A CMA is an analysis of recently sold homes in your area which can help set the price range for your home, just as you like to compare the prices of your favorite brands from different stores.

What’s in a CMA and how can it help you? Since it is a real estate agent who prepare the CMA, you’ll likely find different items included in it, but here are some common things you should see.

1. Recently sold properties. This contains the list of similar properties in the area sold with the past six months. The more recent the purchase, the better. It is important because it says what actual buyers pay for similar properties.

2. Current real estate listings. This refers to a list of similar homes currently for sale in your neighborhood.

It helps you get to know your competition better. You also get to know how much they priced their homes for. Take note, these homes’s prices are not likely to be the final price, so don’t base your pricing on current real estate listings.

3. Pending sale listing. These are homes under contract. I don’t suggest you use the prices of homes under the pending sale listings because the deal is not over yet, and there are probably negotiations under way.

4. Cancelled or withdrawn listings. These are homes that used to be on the market but for one reason or another have been taken off the market.

Where does the CMA’s information come from? Experienced real estate agents know that to come up with the right valuation for your Pleasanton home, the data must come from the MLS (multiple listing service).

The MLS is a database of homes already sold, homes for sale and homes under contract in a given area. It is only accessible to real estate agents. The MLS contains the most accurate record of square footage, number of bedrooms, and other home features you need to accurately compare homes.

The following are some home features we consider in preparing the comparables:

Age and condition of home. The year or era your home was built is a factor we look at when comparing properties. New homes are not necessarily more expensive, but how your home looks relative to its age does matter.

Square footage. One of the features we look at is the similarity in square footage. In comparing two 2-story Colonial style homes for example, one of the things we check is if the homes are nearly similar size.

Number of bedrooms and baths. These two are important determiners of a value of a home. If your home only has two bathrooms while the rest of the comparables have three, certain adjustments should be made in pricing.

Amenities. The more amenities your home offers, the higher the price. Luxury amenities like top-of-the-line home appliances, spas and swimming pools make a huge difference in the home’s price.

Location.  The view outside your window can affect your home price. Your home may not be the best, but if it’s near a great school, on waterfront or on a cul-de-sac, your home’s value appreciates.

I’m Rhonda Fee, broker owner of Aspire Realty licensed in the state of California. When you are my client, I handle you with the same care as if I were buying or selling a property for myself. I care about your success in buying or selling your Pleasanton, CA home. Sign up with me and let’s work together to make your real estate dreams come true! Call me now at 925-200-0827. 

In case you can not view this video here, please click the link below to view How Does Rhonda Fee Arrive at My Home’s Estimated Value?  on my YouTube channel: https://youtu.be/XPcBbtFZ5ss.