The First Step to Home Ownership that Nobody Tells You About
I’ve noticed in my real estate career that a lot of people who are looking to buy a home in Los Angeles don’t know how to get started. Before you start going to open houses left and right, there’s a crucial first step you should take that will tell you what you can afford or how long it’ll take to achieve your goal of home ownership.
The first step is to connect with an agent that can connect you with a lender. The lender is vital because you can’t submit an offer on a property without a lender’s pre-approval letter stating what you can afford to the seller. About those early open houses: Imaging finding your dream home and then realizing you can’t even put in an offer. That’s why you should take this step first — save yourself the heartache!
Engaging with a lender is easy. You can often meet with them over Zoom or what have you, send in your files digitally and check this off your to-do list.
The lender will run a surface-level scan of your finances including your credit score, assets and cash on hand. This isn’t a hard credit check, so it won’t affect your credit score. They’ll produce a number to show you the maximum you could potentially afford. The lender can also set you up with a savings goal to get you to a reasonable downpayment if you aren’t quite there financially.
You’ll also have the option to search for your own lender. If you already have an established relationship with a financial institution, this could help you get a lower rate. Larger financial institutions can be slower and less responsive, in my experience, since they’re working at higher volume. Another option would be a mortgage broker. They tend to have a slightly higher rate but give you individualized and speedy attention, which is crucial when submitting offers.
Don’t fall into the trap of finding your dream home and not being able to submit an offer on the spot. The real estate market in California is highly competitive, and the more nimble you are, the better chances of getting an offer accepted.
Luckily I’m an agent who can guide you through the entire process, from securing a lender to writing a winning offer. Reach out and lets get started!