I have brought to you via our Santa Clarita real estate blog the first three steps to Santa Clarita real estate explained.
When approaching real estate, you will quickly learn that it’s not for the faint of heart and that a lot of misinformation exists online.
You maybe looking for real estate related information so you can make the best decision, only to find that you are reading some hack or real estate syndication website where nothing is factual.
Before venturing into the real estate buying market in Santa Clarita Valley, you will first want to make sure you want to buy a home – that brings us to the first step with regard to buyers of Santa Clarita real estate.
Step 1 – to buy or not to buy
Indeed, that is the question. If Santa Clarita Valley is a good fit for you. You are going to need to contemplate the following things in order to make your best buying decision.
Lifestyle – Maybe you are not settled yet, maybe you will be getting a job transfer any day. It could be that you are considering relocating to another state and you are not really happy in the Santa Clarita Valley.
It’s possible that the Santa Clarita Valley cities are not for you. Before buying a Santa Clarita real estate property, you will want to think long and hard about the “commitment” you are about to make with buying real estate.
When you buy a home, due to the closing costs involved, you are most likely not going to be able to turn around and sell it quickly.
Of course, if you get a stellar deal, then you will. Most of the time, even in a real estate market which is on the rise regarding home values and equity, it will take at least three months in order for you to be at a “break even” stage.
Therefore, when buying a home another thing to consider is how “rentable” it is at your current payment. However, you will also want to combine the cost of homeowners insurance, property taxes and homeowners association fees. That way you will be able to get a better idea as to how much you will need to rent the home for in order to break even and then do adjustments from there.
The overall performance of buying real estate, in the long term, has always been the best investment you can make. Deciding if now is the right time for you and if Santa Clarita is the right area would be your first step in the home buying and real estate decision making process.
After you decide that buying Santa Clarita real estate is a good fit and you wish to move forward – a real estate agent referred Lending professional is the next step.
Step 2 – Realtor Referred Lender
Of course the Lender is the money. The money you will, most likely, need to borrow to buy a home, condo or townhome. If you are a cash buyer, then the dynamic will change and you can jump to step three of the first steps in the Santa Clarita real estate buying process.
Who the lender is is also important. Believe it or not not all lenders are created equally. While all money is the same and spends alike, some lenders only have Window Dressing to offer. They look good because they are hosting a 50 second spot during CNN or FOX and are telling you they are the best in the world and they are going to give you a home loan for a song.
However, when it comes to performance, getting the loan funded – that is a stretch. And, if they don’t get the loan closed for you by a particular and agreed upon time, you could be liable for even more “out of pocket” money.
And of course the obvious – They make you promises, they are not local, they have no brick and mortar offices where you can go to complain in person, and they change the rate, terms and loan which they promised you in the beginning. This uncomfortably always happens after you have given notice to move out from where you were staying before you entered escrow. To cancel at this point is going to cause you more pain and money. You are stuck and about to be forced to make an expensive decision!
Why a Realtor Referred Lender? Because of the built in enforcement mechanism. If someone was referring me a ton of business because I did a good job, and for no other reason, I would truly feel obligated to them to do the best job I possibly could. Not only because my code is that way, but because I don’t want the referral stream to dry up.
The same applies to the real estate lenders in the Santa Clarita Valley whom we refer to our clients. They do a good job. They have performed in the past. If something goes awry, we are going to be held accountable because we referred them. If something even seems as if it’s starting to head off course, only by 1/2 of one degree, I’m making a phone call on my client’s behalf!
When the lender gives you the green light after reviewing all of the requested financial documents, you are now ready. The lender will give you a maximum price. That Max Price maybe more than you want to spend. Find out what you want to spend and what your payment will be at a comfortable purchase price and the search for homes starts – which is step 3 in Buying Santa Clarita real estate.
Step 3 – Finding the right home
Maybe your right Santa Clarita home will be a condo in Canyon Country – North of Soledad where you have a top floor unit with a loft that has parking which is below the building.
Most times the home you are going to be purchasing, at least the first time around, will not be perfect. Perfect homes are a tall order and have price restrictions. If you have unlimited funds, then “perfect” is definitely possible.
Know that you should always be true to the amount you decide you want to spend. Of course being realistic is also something to adhere to. If you are wanting a single family home in Valencia that has over 3000 square feet for under $300,000.00 – you are not being realistic.
Bottom line is that your chosen real estate professional will be setting you up with a search engine that is dependent on the Multiple Listing Service owned by the Local, California and National Board of Realtors. The site which will be sending you listings will be owned by your real estate agent.
The reason is that is verified as the best place to obtain real estate listings from. Some of the real estate syndication websites would have you believe they Trump the MLS – that is not true.
Some of the Realtors prohibit their seller’s listings from appearing on the real estate syndication websites. The only way you’d see those homes for sale would be to have access to the multiple listing service!
Related Article – What is the Multiple Listing Service?
Thanks for taking the time to read the first three steps to buying Santa Clarita real estate.