San Diego Realtor Jack Cline shares his top tips for when buying a home in San Diego CA.

Home Buying Tips

Here are my top five home buying tips. Tip number one, pay off all your debt before saving for a down payment. Here's what I mean. I've had clients who have thousands of dollars for a down payment but have past due payments or outstanding credit card debt. Making sure you're up to date on your bills and paying for credit cards that have extremely high-interest rates, it's going to increase your credit score. It's going to improve your DTI. It's going to put more money in your pocket and it's going to set you up for success when it comes to getting approved for a home loan.

Once you're all caught up, it's time to start saving for a down payment. First-time home buyers can get a loan for as little as three to 5% down, but I personally recommend saving a little bit more for a safety net. Tip number two, get pre-approved with a lender and have them go over an estimate of what your total monthly expenses will be, including things like property taxes, PMI, HOA, insurance, et cetera, before you start shopping for a home, not only is it important to know how much you can afford, but there's a very good chance that you could be approved for let's say $500,000, but in reality, the monthly payment that you're actually comfortable with is a mortgage of $400,000. The last thing that you want to do is spend all this time and energy searching for that perfect home just to find out that it doesn't fit in the budget.

Tip number three, get two or three quotes from different lenders to make sure you're getting the best rate and terms possible for your situation. Some lenders may even offer credits towards closing costs or have other incentives that could be very helpful. I already know what you're thinking, "This is going to destroy my credit." However, this is actually one of the biggest home buying myths, and getting multiple quotes from different lenders is actually highly recommended and will not affect your credit as long as it's done within a certain time period, which is typically 30 days. Tip number four, have your own agent represent you. It's free, as a buyer. Don't try to use the listing agent because they have a fiduciary duty to do what's best for their client, the seller, not you, and working directly with home builders won't do you any favors either? Trust me, I know from experience. Not to mention, most agents have access to off-market properties and other useful resources that can be very helpful when you're searching for a home.

At the end of the day, you want someone in your corner fighting for you that has your best interest in mind. Tip number five, don't make any big purchases or changes while you're shopping for a home, not even new furniture. The last thing that a lender wants to see, right before you make one of the biggest purchases of your life is taking on even more debt. Back to tip number one, we want to minimize as much debt as possible. Likewise, making a big change in employment, right before you buy a home, could throw a wrench in the approval process and things could get really messy, so if you're thinking about switching careers, or starting a new business endeavor, it's best to wait until after you close on your new home. And there you have it, my top five home buying tips. I hope you found this helpful and I'll see you at the next one.