San Diego Buyer's Guide: Buying a Home, Step by Step

A Step-by-Step Guide for Every Buyer

Whether this is your first home or your fifth, the steps are the same. What changes the outcome is how much homework happens before you tour: the permits, the disclosures, the HOA's finances, how the street lives on a Tuesday night. This guide walks through each step and where we do that work for you.

If you're buying your first home, start at Step 1. If you're also selling a home to buy this one, read our Seller's Guide too, since the two moves work best as one plan.

1. Step 1: Choose a Real Estate Agent

   Can you shop for, tour and make an offer on a home without an agent? Technically, yes. But an agent who already knows the homes, buildings and neighborhoods takes most of the guesswork and the stress off your shoulders. Before we start, you'll sign a written buyer agreement that spells out what we do and how we're paid, in plain numbers. We'll walk through it with you, and you can ask anything.

   We also work with trusted local mortgage lenders and can introduce you to one that fits your situation.

2. Step 2: Get Pre-approved and Decide on Your Budget

   Talk to a lender early. It's one of the most important steps in buying a home. Keep in mind that the amount the lender pre-approves you for isn't necessarily the amount you should spend. You need to determine a monthly payment that makes sense for your budget, taking into account any other expenses that come with homeownership. To do this, start by creating a full household budget that considers not just your mortgage payment, but also things like garbage, water, and HOA fees.

   Once you've determined your budget, it's time to get pre-approved, not just pre-qualified. A mortgage professional can help you understand what amount you can qualify for, and this information will be important when making an offer on a home. It's important to get pre-approved as early in the process as possible (you still have the control of when you buy).

   Remember, buying a home is a significant investment, and it's important to approach it thoughtfully and with a clear understanding of your financial situation. By working with a lender, determining your budget, and getting pre-approved, you can make a confident and informed decision about your new home. Remember to lean on your real estate agents Brandon and Lindsey for guidance and support throughout the process.

3. Step 3: Select Your Loan

   Which mortgage product is best for you? You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with. We will all work together as a team to help decide which product makes the most sense.

   If you're a Veteran, see our Veteran Benefits page for programs that may help.

4. Step 4: Find the Right Home

   Before you tour, we check what doesn't show in photos. For a house, that's the permit history, the disclosures and how the street lives day and night. For a condo or townhome, it's the HOA dues, reserve strength, special assessments, lawsuits and rental rules. You see the homes that hold up, and you skip the ones that don't.

   Once we have your loan set up we will take time to discuss what you are looking for in a home! Once we have discussed what your goals are we arrange showings for homes that fit your criteria. Remember to take notes about what you like and don’t like, and pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.

5. Step 5: Make an Offer

   Once you have selected the perfect home, we work together to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. We will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.

6. Step 6: Home Inspection

   In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We arrange this, and you can schedule it within days of your accepted offer. If there are major discrepancies- think health and safety, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it. We submit a Request for Repairs document to start addressing this with the seller. There is a cost for the inspection depending on the size of property that is being inspected.

7. Step 7: Get a Home Appraisal

   Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house. This is a cost to the buyer.

8. Step 8: Finish Paperwork

   No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.

9. Congratulations!

   After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.