Are you wondering about how to buy an expensive home in Los Angeles? Well, if you are know that a lot of people want to live and around the area but most of the good homes are often sold fast.
Many people were interested in living around Los Angeles despite the fact that most homes for sale in the area are expensive. It is a popular city, and its popularity is one of the reasons why it is a great place for new home buyer. Buying home in an exciting city is not impossible even though it is expensive since you have plenty of options. But of course, you need to find first a reliable real estate agent to help you find a home that meets your need.
How to Find a Home for Sale in Los Angeles
Home buyers need to look for the right realtor or real estate agent before starting their search for a new home in Los Angeles. It is necessary that a professional assist you as they can help you find a lender that will provide you with a pre-approval letter.
Professional realtor or real estate agent will help you get your dream home whether you are a cash buyer or not. If you are a cash buyer it is easy to buy expensive home since the process of buying a home is a lot simpler. If not, you need professional help as you cannot make an offer on a Los Angeles home without a letter from a lender. Take note, if you can’t afford to buy an expensive home for cash you definitely need the help of a reliable realtor
For people who plan on buying a home through a home loan, you need to talk to a lender. What does a lender do? They discuss various loan options available for you and help you decide which loan package is better for your finances. Most of the time, you need to choose between putting more down payment and putting less money on a new home. Paying more can make your monthly payments lesser while paying below 20% requires an insurance mortgage to get a home loan.
Talking to a lender is important as you can get an idea about the total payments you need to make monthly, including the insurance and tax. Knowing the possible monthly expenditures will help you determine your comfort level. Most people qualified for a loan are not comfortable paying a large sum of money monthly for many years.
Moreover, when buying a home in LA, the state requires a pre-approval letter from the lender. Pre-approval letter is not the actual loan approval and it is easy to get you just need to provide basic information. The real loan approval requires paperwork, loan application form and an escrow. Not all home buyers who got a pre-approval letter from a lender qualify for a home loan. There were instances when a home buyer didn’t qualify for an expensive home loan after submitting their papers.
The Actual Home Purchase in Los Angeles
The first step in buying a home in Los Angeles is getting ready. You have to prepare your finances and schedule a time for house viewing. Once you have prepared, find a reliable real estate agent that you can trust to make your house hunting easier. Don’t be afraid to get an agent since you can get one without paying any money. And agents paid by the seller and not the buyer. Bear in mind that you should only use one realtor or agent and there is no need to use many agents because every agent accesses the same data.
After finding an experienced realtor or agent, make your agent aware on what you want. In other words, define your criteria so your agent can start giving a list that meets your criteria and finances. Most agents have two sets of list prepared for the home buyer. The first list is a collection of expensive home in Los Angeles that is on the market. The second contains homes for sale not on the open market as the owners themselves sells them while agent sells by word of mouth. Once you got a list, review and let the agent know which homes you wanted to view so they can make an appointment with the owner.
Great homes in Los Angeles often got a lot of offers, so if you found the home you love make an offer before someone snaps it up. Your chance of getting your dream home is high when you let the realtor help you make an offer as they are familiar with the priced in the area. By the way, making an offer for a new home is easy when you are not competing with a cash buyer.
Once you make an offer prepare for a counter offer since you are buying an expensive home in a good area. It is best that you do not make a low offer on a well-priced property or you will get left out. Consider making an offer a little above the owner’s asking price and just negotiate. Owners usually accept right away a reasonable offer or they make a counter offer that you will either accept or reject. If you reject the counter offer, you can make another offer.
If your offer gets accepted, the process for buying an expensive home in Los Angeles is almost over. The next phase of your home buying is securing the loan approval and closing an escrow. In the state of California, you need an escrow to buy a home when you are buying through a home loan. Once the escrow gets placed, the next step is a home inspection.
The home inspector would determine if the house is good enough that there are no problems. After the home inspection and the escrow are good, prepare for a move in. Before you move in, change all the locks and do whatever necessary such as changing the utilities name into yours. If you are a cash buyer get a home insurance before you move in.