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How to Land Your Dream Home in 2022
Since welcoming in the new year, you may be thinking it is time to finally purchase a home.
Mortgage rates remain historically low despite recent increases, and online tools that streamline the search and purchase process are more readily available. So there hasn’t been a better time to buy a home in Los Angeles, except for how competitive the market is right now.
That is why first-time and experienced buyers alike need to prepare before purchasing a Los Angeles home. Luckily, house hunters can employ a few tricks to get a leg up on the competition.
To help aspiring homeowners navigate the market, the team atPrevu Real Estate has compiled several expert tips for landing your dream home in 2022.
Start saving early
There is no question that buying a home in the Los Angeles area is expensive. Down payments andclosing costs combined can total up to 25% or more of a home's purchase price.
That is why buyers in Los Angeles need to start saving sooner rather than later if they want to buy their first home or upgrade to a new one. But first things first, put a budget together. This way, you can build positive saving habits while preparing yourself for incoming costs. Your budget will also show you where to cut out excessive spending.
Ask your agent for a commission rebate
Many times, buyers end up working with a realtor suggested to them by a friend or partner up with the last real estate agent who helped them buy their current home.
An experiencedbuyer’s agent will know Los Angeles like the back of their hand, helping you discern which parts of the city best fit your life goals. And while the search process is fun, the agent should also explain the costs of buying a home. That is why buyers should interview multiple agents about their experience and ask if they offer acommission rebate.
L.A. buyers that work with agents offering rebates can save significantly at closing. Commission rebates, sometimes called commission refunds, allow brokers to provide new homeowners with a portion of their broker's fee after closing a deal.
Prevu Real Estate offers the largest rebate in California, totaling up to 2% of the home’s purchase price The savings from a commission rebate often helps buyers in Los Angeles remodel a kitchen or bathroom, furnish a living room, or simply replenish their savings.
Get pre-approved for a mortgage
While budgeting, chances are you will find old W-2s and other paystubs. Make sure to hold onto these, as they are critical for getting pre-approved.
Some folks will purchase a house all-cash, but most people finance their home purchase through a lender. When getting a mortgage, buyers need to be conscious of their credit.
Lenders look for consistent credit history and income stability. As such, any buyer should be comfortable in their career before applying for financing. It doesn't hurt to get into the habit of tracking spending and keeping financial paperwork, as lenders require this data for the pre-approval and subsequent underwriting process.
Decide on your favorite neighborhoods
There is a home to suit every soul in the City of Angels. Renters get the obvious flexibility of living in various parts of the city over time, but not all buyers have this luxury once they commit to a property.
Finding your dream home in L.A. can get out of hand if you do not focus your search on a specific area or neighborhood early on. Many modern buyers take pride in their research skills, using tech to find homes that fit their needs.
Act quickly when you find the one
As cliche as it sounds, the early bird gets the worm in real estate. While the bidding wars that characterized the summer of 2021 are over, competition remains fierce in the City of Angels.
So long as your savings are in order and have an agent backing you up, place an offer ASAP when you find your dream L.A. home. Having a pre-approved mortgage loan is critical at this step, as it shows sellers you are ready to back up your offer.
This is when having a trusted agent shines, as they will walk you through the deal process, helping you negotiate terms so you can get the keys to your new L.A. compound and a commission rebate to boot!
Prevu Real Estate, Inc. is a licensed real estate broker in California, license number 02134758.