DTLA LIFE MAG #10 | OCTOBER 2014 | Page 8

THE BIGGEST INVESTMENT OF YOUR LIFE We really should called this article, “Let’s talk about the big- gest financial investment of my life.” While there are thou- sands of online websites and other utilities to understand home buying, it can get SUPER scary and overwhelming. So rather than sift through countless articles and informational websites, we have used the National Association of Realtors guide to “Home Buying in 6 easy steps”. Qualified real estate professionals spend time and money learning all the ins and outs of the real estate process are are here to help you, the homebuyer understand each step along the way. We can alleviate your worries and break down oth- erwise cumbersome paperwork to the “need to know” basis. So, be sure to check out your local realtors (hopefully ME!) and ask away, we ar e here to make your decision process easier and maybe more fun! 1 - Get Ready for Homeownership Build a good credit history: Ask us about our preferred lender, Anthony Sabella with Stearns Home Loans, for a complete mortgage pre-approval letter so you can understand your buying power and the costs outside of the purchase price. Consider hiring an attorney to review all contracts and agree- ments associated with the home buying process. Save up!! Down payments are typically 10-20% of property’s value and consider closing costs which can include taxes, attorney’s fees, and transfer fees. Don’t forget to include utilities and monthly bills, such as homeowner’s association fees (Espe- cially in condos and DTLA) as well as parking and the extras! 2 - Find a Real Estate Professional Come visit us at our home office on 6th and Spring Streets Get a referral from friends, family, and work colleagues. Ask the real estate professionals you interview about buyer’s rep- resentation contracts and agreements; make sure you under- stand the terms. Explain your needs and expectations to the real estate professional you choose to work with. 3 - Find the Right Property Determine what is important to you, such as neighborhood amenities, type of property (new or historical buildings, the monthly mortgage payment, public transportation, walkabil- ity, etc. Make sure you include home owner’s assessments, utilities, and taxes when calculating the monthly mortgage payment. 4 - Finance the Property Get the final documentation from your preferred lender. The lender or attorney will run a title search to ensure there are no clouds on the title. Make sure you understand the financing terms—ask the lender for clarification, if needed. 5 - Have your real estate agent make an Offer Read all contracts before signing—make sure you understand all of the terms, ask questions. Place a competitive bid and be prepared to make a counteroffer. Keep your credit score stable and in-check by waiting to purchase any big-ticket items until long after the closing. Only one offer will result in a sale, so be prepared to move on if your offer is not accepted. After the offer is accepted: Ensure the property is inspected by a licensed home inspector. Acquire title insurance. Make sure the title is clear, or make your offer contingent upon title clearance. 6 - Closing and Life After the Big Pur- chase Protect your new asset by obtaining insurance such as homeowner’s, flood, disaster, and fire. Maintain files—digital or print—for all warranties, insurance documents, contracts, etc. Keep original closing documents in a safe place, prefer- ably outside the home (such as a safety deposit box). Set up utilities bills in your name, maintain files. Implement desired aesthetic changes such as painting, minor. construction, and re-flooring. Set a move date and hire movers or plan a move party with your friends. Get to know your neighbors and ex- plore your new neighborhood. AND in closing, don’t forget, we work on referrals, so if you’re happy with the work of your real estate professional, be sure to recommend her/him to friends and family. For more information, feel free to give me a call at (213) 447 4130 or drop me a note at [email protected] - We are more than just your Realtors, we are your Neighbors! Tiffany Gatto Managing Partner LA LOFTS | Realty ® (213) 447 4130 [email protected] www.laloftsrealty.com