Buying a home in San Diego can take several months. This is especially true of first-time buyers, who may want to research many different neighborhoods before deciding to focus on one.
Step One: Spend a few weekends getting to know the market
Have your agent set you up with a property search directly from the Multiple Listing Service for the most accurate listing data. San Diego’s MLS allows clients to create and edit their own searches, just like the most popular real estate portals do.
Drive around your favorite neighborhoods, explore new ones, visit weekend open houses. Get a feel for the neighborhood and home features that are really important to you. Do you want to live in a dynamic, close-knit community or do you crave a mountaintop? A big yard or a low-maintenance one? Open-concept kitchen so your dinner guests can hang out while you cook, or traditional, the better to hide the dirty dishes?
Take this time to consult with lenders and obtain a loan pre-qualification. (What’s the difference between a pre-qual and a pre-approval? There’s a great explanation here. Take a look at the Consumer Financial Protection Bureau site to learn more about mortgages.) With your pre-qualification in hand and your budget established, your home search can begin in earnest.
The search
Time to get inside some houses: First-time or out-of-area buyers often experience sticker shock when confronted with what half a million dollars buys in San Diego. It’s true, San Diego is one of the most expensive metros in the nation. But the county’s big, and truly local Realtors can find a great home for any budget.
By now you and your agent have a good rapport and s/he has a sense of what you’re looking for in your new home. In addition to the properties you’ve already picked out your agent may suggest others with similar appeal. It’s likely that you’ll “date” quite a few houses—anywhere from half a dozen to 20 or more—before you decide you want to commit.
Offering, probably more than once
The post-bubble property glut is long behind us. San Diego saw a severe decline in housing inventory in 2012 and as of early 2018 competition for desirable properties remains fierce: there’s a good chance you’ll write several offers before getting one accepted.
While you were actively viewing properties you were also working with your lender to obtain your loan pre-approval. Your lender has your financial documentation and credit history and is ready to make you a loan. It’s imperative that you include your pre-approval letter with your offer of purchase so that the seller knows you have the ability to make good on your offer.
Escrow!
When your offer is accepted an escrow is opened. In California, your purchase offer was made with a Residential Purchase Agreement (RPA). The RPA when signed by all parties will also be your sales contract, and contains the terms of your escrow. A typical escrow is 30-40 days but can vary depending on buyers’ and sellers’ needs and the type of mortgage.
So what is an escrow anyway? Simply put, an escrow is a process for transferring property (any property, not just real estate) from one person to another. In real estate, escrow is the time during which all documents are reviewed and signed, the deposit is made, inspections are done, repairs are negotiated and completed, and the loan paperwork is finalized. Near the end of the escrow you will transfer your down payment and settlement fees to the escrow company.
With so much to get done in a month or less, escrow can be an exasperating experience. But your buyers’ agent will be there to guide you through it and, if you persevere, you’ll end up with a new house.
Closing
Escrow closes with the funding of the loan and recording of the new deed. In a typical escrow the seller will have vacated the property a few days before close of escrow so your house is ready and waiting for you by the time the deed is recorded. The seller gets paid, and your agent gets to deliver you those keys.