Looking to purchase real estate in the Golden State? Join the club.
California is the most populated state in the country—so you’re in good company. However, you’re also up against fierce competition. Fortunately, there are a few tricks you can utilize to get ahead in this tricky market. Read on for three tips for affording a home in California!
#1 Choose Your Area Wisely
California isn’t exactly a small state. This means you have options when it comes to the area you live in—maybe even too many options.
Deciding on a single part of this great state can be intimidating. That’s why it’s crucial to understand the pros and cons of each region, particularly when it comes to real estate. Breaking down the entire state county-by-county could fill an entire article and then some, but here’s a general idea to help narrow down your decision:
The bottom line: Choosing the right area for your budget can make a big difference in affordability. Try to avoid hot spots like San Francisco and Los Angeles if you’re looking for a nice home that won’t break the bank!
#2 Find a Mortgage That Works for You
Many homeowners believe they need to bend over backward to meet the needs of mortgage lenders—this simply isn’t true! Depending on your situation, there are several mortgage options to choose from that can better fit your financial needs:
The bottom line: California homes are expensive, but the state offers plenty of mortgage options for buyers who need flexibility. See if you qualify for a government-backed loan before applying for a conventional mortgage.
#3 Get a Pre-Approval Letter
California real estate is competitive, and many buyers end up making larger offers than they can afford, in an attempt to beat out other candidates.
Don’t stress yourself out with a down payment that’s too high. Instead, opt for a pre-approval letter from your lender. A pre-approval letter is proof that your mortgage request has already been accepted. Providing this document to a seller will show that you’re serious about purchasing their home, and actually have the means to do so (without breaking the bank).
Soak Up the Sunshine in Your New Home
Purchasing a home in California won’t be easy, but it’s definitely worth it.
With these Cali-savvy tips, you’ll be on your way to homeownership in no time. Put in the work now and soak up the rays in your backyard later!