The Ultimate
BUYER'S PLAN TO
FIND YOUR HOME SWEET HOME
A comprehensive plan to help you understand the market and show you everything our real estate team does to help you purchase a home.
OUR MISSION
Our mission is to facilitate the process of buying and selling real estate by providing best-in-class service through quality communication, expert marketing, and a clear understanding of the current real estate market. Our success comes from our dedication to maintaining the highest standards of integrity and trust with our clients and colleagues. Our ultimate goal is to serve the communities we live in and be a valuable resource to our clients as we work to fulfill their real estate needs.
OUR VALUES
We cultivate a spirit of collaboration, innovation, and integrity by offering a complete suite of today's best marketing and real estate services. We deliver a successful and proven way to professionally transact business with the highest transparency. Creativity, locality, quality, and passion are fundamental to our success and growth.
OUR SERVICE
We are committed to work with you to market your home. Having already helped hundreds of clients successfully sell their homes for top dollar through our proven marketing and expert personal service, we are confident we can sell your home for the best possible price in today's market. Your right is to evaluate how well we live up to this standard and end the listing agreement at any point with no penalties or obligation if we do not deliver the services we promise.
PROFESSIONALISM & INTEGRITY
We pay attention to our client's needs and we know every listing and neighborhood inside and out. Our clients know we do our homework. We work hard to get our clients the best possible outcome. We skillfully guide you through every step of your real estate transaction.
909.638.4061
info@G5RealtyGroup.com
BUYING YOUR
home
FIRST
WHAT YOU SHOULD KNOW
WHAT YOU SHOULD KNOW
Buying your first home is considered one of the biggest milestones — in life as well as finances. It's a big commitment, and there's a good chance this will be the largest purchase you've made to date.
Whether it’s your first foray into the exciting home-buying process or you’ve been through it before and have forgotten the details, this guide will provide the first-time homebuyer tips to prepare you for what’s ahead.
Buyers should start off the homebuying process by determining what they want, what they can afford, and when they want to move
You don’t have to become a real estate expert in to get the right deal on your future home. But the more you learn ahead of time, the better off you’ll be.
Understanding the basics of what a real estate agent does, and how a mortgage works, will help you know what questions to ask prospective agents and lenders. It’s also important to complete each step in order. For example, if you don’t get a preapproval before starting your house hunt you could waste time looking at homes out of your price range, or be too far behind to make a serious offer when you do find the right house.
MAKE YOUR PLANS &
SET YOUR PRIORITIES
After answering the following questions, you will be in a great position to research your housing and mortgage options as well as create an action plan and timeline.
SET YOUR PRIORITIES
1
What do you want from a home?
2
What does your family want?
3
Do you want a turnkey home or would you prefer to renovate?
4
Choose the top give "must-haves"
5
Choose the top five "would-likes"
6
Are you pre-approved for a mortgage?
7
What can you afford each month?
8
When is the ideal time to move?
home
THE
BUYING PROCESS
Our goal is to make your home buying experience as easy as possible, with the least amount of stress and the most money in your pocket.
1
MAKE PLANS & SET PRIORITIES
You have made the huge decision to sell your home. You start checking out market conditions and estimating the associated profits and costs.
STEP
1
3
PREPARE FINANCES
Keep your housing costs (mortgage, insurance, etc.) to 30% of your income. However, most professionals will even suggest aiming for 25%. A mortgage lender will help you determine exactly what you can afford and, therefore, which houses you should be considering.
STEP
2
STEP
3
2
FIND THE RIGHT AGENT
You hire a Realtor to consult you on the many important factors involved in selling a home, as well as negotiate on your behalf and deal with any issues that may arise along the way.
4
GET PRE-APPROVED
STEP
4
5
START HOME SHOPPING
We will market your home on many platforms to ensure it is seen by as many potential buyers as possible.
STEP
5
7
ORDER INSPECTION & APPRAISAL
The buyers will perform a final inspection to verify property condition. Once the closing documents are signed and the buyer's final funds are received, the deed is recorded with the County Recorder's Office and escrow is officially closed.
STEP
6
STEP
7
6
MAKE AN OFFER
Your agent will help you negotiate buyer offers to purchase as well as any requests for repairs and/or credits during the inspection period.
STEP
8
8
CLOSING DAY
Time to celebrate the sale of your home!
Ensure your home remains clean, staged and landscaped throughout the process. You want your home to look its absolute best from the professional photo shoot through close of escrow.
PREPARE YOUR FINANCES
Don't overextend yourself - you should aim to be as realistic as possible about your budget before falling in love with a home you can't afford. A good rule of thumb is to keep your housing costs (mortgage, insurance, etc.) to 30% of your income. However, most professionals will even suggest aiming for 25%. A mortgage lender will help you determine exactly what you can afford and, therefore, which houses you should be considering.
HOW MUCH CAN YOU AFFORD?
DEVELOP A BUDGET
Use receipts and your banking transactions to create a budget that reflects your actual habits over the last several months. This approach will better factor in unexpected expenses alongside more predictable costs such as utility bills & groceries. You’ll probably spot new ways to save!
REDUCE DEBT
Lenders typically look for a debt load of no more than 36% of income. This figure includes your mortgage, which ranges between 25-28% of your net household income. So you need to get monthly payments on the rest of your installment debt (car loans, student loans & credit card debt) down to 8-10% of net monthly income.
INCREASE YOUR INCOME
Now’s the time to ask for a raise! If that’s not an option, you may want to consider taking on a second job or side hustle to get your income at a level high enough to qualify for the home you want.
SAVE FOR A DOWN PAYMENT
Designate a certain amount of money to put away in your savings account each month. Although it’s possible to get a mortgage with less than 5% down, you can usually get a better rate if you put down more. Aim for 20% of the purchase price.
KEEP YOUR JOB
While you don’t need to hold the same job forever to qualify for a loan, having a job for less than 2 years may result in a higher interest rate.
ESTABLISH A GOOD CREDIT HISTORY
Get a credit card, make payments on time, and pay off entire balances as quickly as possible. Get a copy of your credit report, which includes a history of your credit, bad debts, and late payments. Ensure that it’s accurate and correct any errors immediately.
WHAT AFFECTS PRICE?
LOCATION
Homes in more desirable neighborhoods, homes closer to
shopping and entertainment, or homes that come with additional community amenities, command higher prices.
CONDITION
Homes in the best condition with the most up to date amenities bring a higher price than a dated home or one with standard amenities.
MARKET
The performance of the market has an impact on pricing - such as current home inventory and interest rates.
TERMS
Your terms can affect how your home is priced. How soon you can move, whether or not you will make repairs, if you're offering a home warranty, and more can make a difference.
WHEN PRICE IS NEGOTIABLE
MOTIVATED
SELLER
HOME HAS BEEN ON MARKET FOR A WHILE
NEEDS RENOVATIONS
These property owners are eager to close the deal on a piece of property quickly.
The longer a house has been listed, the better your chances of striking a deal. Some buyers will only look at older listings, to give them more negotiating power.
One way to score a deal in this market is to shop around for fixer-uppers
Credit scores play a huge role in the loan qualification process. Increase your chances of success by following these guidelines:
DO NOT OPEN NEW CREDIT
If you’re applying for a mortgage, having too much available credit can actually lower your score. You'll want to speak to a professional, but it's best to avoid opening new credit cards when applying for a mortgage.
PAY THE MAXIMUM CREDIT CARD BALANCE
In order to secure a loan, you'll need to stay on top of credit card payments. Pay off as much of your balance as you can each month, as well as paying your bills on time.
AVOID ANY BIG PURCHASES
Although you might be tempted to order new furniture, appliances and decor for your future home, you'll want to avoid making any big purchases until you close on the property.
SUBMIT CREDIT APPLICATIONS AT ONE TIME
Having too many credit applications can lower your credit score. On the other hand, multiple credit score inquiries from the same type of lender are counted as one if they are submitted over a short period of time.
WHY MORTGAGE PRE-APPROVAL IS BETTER
An Open House is a great way to show off your home to a wide pool of potential buyers. Here are top reasons why an Open House is an important marketing vehicle when selling your home.
PRE-APPROVAL LETTER
A pre-approval letter is the real deal, a statement from a lender that you qualify for a specific mortgage amount based on an underwriter’s review of all of your financial information: credit report, pay stubs, bank statement, salary, assets, and obligations.
Pre-approval should mean your loan is contingent only on the appraisal of the home you choose, providing that nothing changes in your financial picture before closing. This makes you as close to a cash buyer as you can be and gives you a huge advantage in a competitive market.
Both pre-qualification and pre-approval are steps on the way to lender approval. Typically, the pre-qualification phase comes first, while the pre-approval—a more intensive process—is the next step. Before you put in your first offer, aim to be pre-approved.
During pre-approval, you’ll submit financial records to the lender to provide evidence of your total net worth—your assets, income, and current debts, as well as your credit score. So long as you don’t buy a big-ticket item or take out a new loan, you’ll most likely have no issues getting the funding you seek. Many lenders do pre-qualifications and pre-approvals over the internet.
When buying a home, cash is king, but most folks don't have hundreds of thousands of dollars lying in the bank. Of course, that's why obtaining a mortgage is such a crucial part of the process. And securing mortgage pre-qualification and pre-approval are important steps, assuring lenders that you'll be able to afford payments. However, pre-qualification and pre-approval are vastly different.
PRE-QUALIFIED
Offers a general estimate of the loan amount you can qualify for.
Provide basic information to the mortgage lender, but not financial history.
Makes realtors and sellers suspect that you're just a window shopper.
Pre-qualification isn't strong enough to support a contract or offer.
The process can be done either online or over the phone.
PRE-APPROVED
Offers a specific loan amount for which you've been approved.
Provide important details such as financial and employment history.
Has a better reputation, and let's realtors & sellers know you're serious.
Pre-approval is often required before a contract can be signed.
The process can be done either online or over the phone.
&
START THE HOME
SHOPPING PROCESS
Shopping for your dream home is usually the most exciting part of the process! However, it can also be a very stressful & tiresome experience. Here's a few top tips to help you navigate the process.
GETTING STARTED
Your real estate agent will most likely get you set up on a search through the local MLS that will send you houses via email meeting the criteria that you gave them. You can browse through the listing photos and read through the descriptions for each property and then decide if you’d like to go check it out or not.
TAKE DETAILED NOTES
Take note of the things you do and don’t like about each potential new home to help you refine your search. Be brutally honest about your feedback on the home - this is a huge decision! If you're really not fond of the home layout, you won’t hurt your real estate agent's feelings by telling them that up front.
ENVISION YOURSELF
LIVING THERE
STAGING YOUR
HOME TO SELL
Every seller is competing for the right buyer. Staging is a strategic marketing tool designed to show a property in its best possible light. Often it just takes an
outsider’s look to rearrange the items you have to make the space pop!
ADVANTAGES TO PROPER
STAGING
Increases the likelihood of a higher
sales price
Gives the impression of a well maintained home
Gives a favorable first impression
Helps justify the asking price
Makes the home seem larger
Gives every room a purpose
Helps buyers see themselves in the home
Puts your home above the competition
Creates a “must-see” home through
photography
Gives you a head start on packing
YOU'VE FOUND A HOUSE YOU LOVE
Once you’ve found a home you want your agent will work with you to craft an offer. Remember, the listing price is only a starting point. Your agent will understand the market and help guide you to make the most attractive offer, whether it’s below, at or above listing price. Are there any contingencies to your offer? Will you require an inspection? These are all things your agent will help you with.
Once you’ve submitted the offer you get to wait. You may get a simple yes, but you should be open to the possibility of it not working out, too. Don't let personal attachment get in the way of the nuts and bolts of the home-buying process, or you’ll most likely be disappointed. The time to pop the champagne is when the keys are in your hand. Not a moment sooner.
WHAT IS EARNEST MONEY?
Earnest money is, in short, earnest. It’s a sign to the seller that you want this house. Your real estate agent should be able to guide you on the benefits of an earnest money deposit, which is sometimes required by the seller and other times offered in good faith.
Earnest money typically ranges from 1% - 3% of the home’s price. And no, it doesn’t go directly into the seller’s pocket, regardless of outcome. If the deal ultimately falls through, in most scenarios the deposit will return to you. Earnest money is held in escrow until the day of closing, and is put toward the closing costs of the home purchase.
LOGISTICS OF A
HOME INSPECTION
If your offer called for a home inspection, this is a big day. Sure, you get to have a home inspector look over the home to make sure there are no defects you want to negotiate to have fixed, which will be discussed below. But more importantly, this is the most time you’ll spend in your new home until closing. Start measuring things and figuring out what goes where. This may be the last time you are inside the home until it's yours!
The goal of the home inspection is to make sure that all major systems & structures in your prospective home are in working order. A home inspector evaluates things like plumbing, electrical, HVAC, roofing, exterior walls, fireplaces, pools and basement. Testing is also usually done for harmful effects like mold, radon, and asbestos. The inspector will follow a checklist and make notes of anything that may need early repairs or isn't functioning correctly.
You’ll want to be present during the inspection, so make every effort to coordinate schedules with the inspector and be there to ask questions as you walk through the home together. Don’t let anyone convince you into thinking “you don’t need to get an inspection.” A home is the biggest of big-ticket items, and due diligence is essential. You can expect a home inspection to run you $250 to $400—possibly more if the home tops 2,000 square feet. Average home values by zip code and square footage are the biggest drivers of higher fees for home inspection.
ESTIMATE THE HOME'S WORTH
During an appraisal, a licensed appraiser evaluates the home you want to buy in person and gives you an estimate on it’s worth. Typically, the appraiser is chosen by the lender but paid for by the buyer as part of the closing costs. Appraisals cost around $400 (but can vary depending on home size and location) and the appointment usually takes an hour.
1
2
ASSESSMENT OF PROPERTY
The appraiser will walk through the home, taking note of its condition, finishes and location — you can somewhat think of it like a light inspection.
REVIEW OF COMPARABLE SALES
The appraiser will use the findings of their walk-through to identify similar homes that have sold recently in the neighborhood. This will help them decide a fair market value.
3
FINAL REPORT
The appraiser will deliver a physical report on the fair market value of the home, including photos and descriptions of comparable sales. In most cases it’s just the lender and the buyer who will receive copies of the report. The seller may request a copy of the appraisal report, but in most cases you are not required to share it. Ideally, the appraisal will return higher than the agreed upon sales price. That indicates that you’re paying less than the fair market value and your lender will approve the loan.
COSTS ASSOCIATED WITH
BUYING A HOME
WHO PAYS WHAT?
Closing costs are various fees charged by the lender, the title company, real estate agents, and other service providers in order to complete a real estate transaction and are paid through escrow. Which party pays for specific closing costs can be negotiable between the buyer and seller.
THE BUYER CUSTOMARILY PAYS:
THE SELLER CUSTOMARILY PAYS:
Title insurance premiums
Escrow fee
Document preparation (if applicable)
Notary fees
Recording charges for all documents in buyers' names
Tax proration (from date of acquisition)
Appraisal fee
Interest on new loan from date of finding to 30 days prior to first payment date
Assumption/change of record fees for takeover of existing loan
Beneficiary statement fee for assumption of existing loan
Prorated HOA dues, if applicable
Inspection fees (roof, pool, property inspection, pest, geological, etc.)
Home warranty (according to contract)
City transfer tax (according to contract)
Fire insurance premium for first year
Real estate commission
Document preparation for deed
Documentary transfer tax
Payoff of all loans against property
Interest accrued on loans being paid off, reconveyance fees, and repayment penalties
Home warranty (if specified in contract)
Any judgment or tax liens against seller
Property tax proration
Prorated HOA dues, if applicable
HOA fee for providing all updated homeowner's documents, if applicable
Bonds or assessments
Delinquent taxes
Notary and recording fees
Third party Natural Hazard Disclosure Statement and California Tax Disclosure Report
Pre-sale inspection fees
Negotiated credits to buyer, if any
Negotiated repairs, if any
GUIDE TO CLOSING COSTS
TERMS YOU SHOULD KNOW
Closing Cost: Fees paid at the end of the property transaction either by the seller, buyer or both parties. They include the taxes, insurance and any other lender expenses which will be discussed prior to closing.
Appraisal fee
The fee that is charged by a property appraiser to make a fair market value estimate of a property. *This fee is required by the lender.
discount points
Paid to lender at closing to reduce the interest rate over life of mortgage. *This will generally be around 1% of the total loan amount.
Flood certification fee
A check of public records to confirm that the seller owns the property and is free from unsettled items, liens or claims.
Homeowners Insurance
This is an insurance policy that provides coverage for home damage, as well as claims of negligence that result in someone's injury.
Homeowners association
A maintenance fee applied to planned developments & condominium owners to maintain the common area. *Charged to each owner.
Initial escrow
Funds held in an account that are to be used by the lender for property taxes, homeowners insurance and flood insurance.
origination fee
A fee paid to the lender to evaluate credit & underwrite and process loans. *This is usually calculated in the form of points.
Prepaid interest
A required prepaid deposit that covers the interest due on your mortgage between the date of closing and the first mortgage payments.
mortgage insurance (PMI)
Private mortgage insurance that protects the lender in the event that the borrower defaults. Required if down payment less than 20%.
Prorated property tax
The property taxes that are transferred from seller to buyer on the final closing date, until a new buyer purchases the property.
Recording fee
A fee that is charged by the County Clerk to record the transfer of property from one owner to another via public record documents.
Termite inspection fee
A required fee paid for a professional inspection to certify that the property is free of any active termite damage.
title insurance
An insurance policy that is required by most lenders & protects against any errors or claims that may arise about ownership.
title search
A check of public records to confirm that the seller owns the property and is free from unsettled items, claims or liens.
transfer tax
Transaction fee imposed on the transfer of property title. *Usually paid by the buyer and is based on the amount of the home mortgage.
Darrel & Sandra
Gomez
DARREL GOMEZ
909-489-3565
Darrel@g5realtygroup.com
DRE Lic No. 01729818
SANDRA GOMEZ
Hablo Espanol
909-638-40615 Sandra@g5realtygroup.com DRE Lic No. 01931472
Broker DRE Lic No. 01527033
Combined 40 years of real estate experience and formal educational backgrounds in Business, Finance & Real Estate Law, we bring you the consummate professional experience. We are thrilled to offer you our fresh approach to real estate. With total dedication to customer service, we handle every last detail of each transaction with meticulous expertise, focusing on the individual needs of each of your clients. We have the knowledge and experience to navigate through high conflict and complex situations.
We're here to support you each step of the way.
EXPERIENCE
40
15
Years selling and buying real estate
Yearly average transactions
9483 Haven Ave, Ste 100 | Rancho Cucamonga, CA 91730