Home Buying Checklist

Planning for home ownership is not as difficult as you may think. At San Diego County Credit Union, we've taken the mystery out of home buying with this simple step-by-step planning guide to assist you throughout the process.

Step 1 - Get Prepared
The first step in buying a home is determining your budget and how much you can afford. Knowing how much you can afford in mortgage payments will help determine which homes are in your price range. Generally, your fixed expenses (mortgage payment, insurance and property taxes, but not maintenance and repairs) should not be more than 28 percent of your gross monthly income.

If you want to do some research on your own, use our mortgage qualifying calculator that will guide you through the process of finding out how much you can borrow.

Step 2 - Get pre-qualified or pre-approved
To put yourself in a stronger negotiating position with any seller, consider getting pre-qualified or pre-approved.

There are two types of "pre" letters:

• Pre-qualification is an informal agreement between you and your lender. The lender gives their opinion on how much they think they will be able to lend to you based on information that you have provided to them. Your lender does not do any background check at this point. It relies solely on you portraying an accurate picture of your circumstances. There is no charge to do this and you are under no obligation to get a mortgage with this lender if you find a better deal later.
• Pre-approval is more serious. The lender will check your credit history, employment information, assets and liabilities. If you are concerned that you might not qualify for a mortgage, it is highly recommended that you get pre-approved. It will ease your mind as you look for you new home.

San Diego County Credit Union offers several types of fixed and adjustable mortgage loan programs with terms up to 40 years and 100% financing.

Step 3 - Decide what you need in a home
Make a list before you go house hunting of the features that are the important to you. For instance, if you want to purchase a home with two floors, you and your Realtor can eliminate all single-level homes for sale. In this way, you won't waste your time looking at homes that don't fit your needs.

Step 4 - Hire a Realtor
It is optional to hire a Realtor, but there are definitely advantages to having one. Look for someone who is familiar with the area you prefer and can tell you about the schools, parks, traffic, shopping, and home values. Don't be afraid to interview several different Realtors until you find one that seems like a good match.

Step 5 - Make an offer
Once you've located the home you want, make an offer. Your Realtor can access a database of recent, nearby home sales to compare prices and get a better sense of how much to offer. A serious offer typically requires an earnest money payment and a "purchase and sale agreement," which shows the terms of your offer and any contingencies. Your lender will require an appraisal of the home and a title search will be ordered to ensure that you have clear title to the property, with no outstanding liens.

Step 6 - Get a home inspection
Even if the previous owner had an inspection, it is a good idea to choose your own inspector to learn the details about the home you plan to buy. A home inspection will uncover any major repairs that need to be fixed before you buy. Look for inspectors who are certified by the American Society of Home Inspectors®.

Step 7 - Sign the papers
Once your offer has been accepted by the seller, it's time to "close" the loan. The closing is a formal meeting that you attend with a closing agent and possibly your Realtor. You are responsible for three things on the day of your closing-the down payment, the closing costs and signing documents.

Final step -- move into your new home!
For more helpful home buying tips, speak to an in-branch real estate specialist at any of our branch locations.