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Buying a home? Here’s where to start

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It’s not easy to buy a home, especially one that is priced in the millions. Closing on a home in the higher price ranges involves greater legal and financial requirements. Nevertheless, the overall process is still similar to the one for buying a standard single-family home.

Focus on the 5 key points below to be well on your way to owning one of the beautiful homes for sale in Carmel Valley, CA.

  1. Build a clear image of the home you want

    Having a solid idea of what you want saves you valuable time. When you’re clear on your non-negotiables from the very start, you avoid touring the wrong homes or ending up with a multi-million-dollar mistake.

    Ask yourself these questions before you make the purchase:

    • Does the home meet most of my criteria for amenities and build quality?
    • Will the home’s location affect its actual value or my perception of it?
    • Will it be a primary residence, a rental, or a vacation home?

  2. Decide: cash or jumbo loan?

    Homes in the upscale market command significant resources. Buyers tend to choose between two routes: pay upfront in cash or apply for a jumbo loan.

    Cash is a strong choice if you have great reserves. It gives you a significant bidding advantage and does away with monthly mortgage and interest payments completely. But there is a catch: it disqualifies you from the $750,000 in tax deductions allotted for mortgage debt.

    Jumbo loans, on the other hand, allow for those deductions and make a good alternative if you don’t want to put all your reserve money into one asset. Even though the requirements for jumbo loans are more stringent, the interest rates offered by lenders are much lower than those available for conventional loans.

  3. Prepare for a rigorous credit check

    Regardless of how you finance your home, you will need to provide a lot of documentation. Because of the higher stakes and greater selectivity, buyers of higher-priced homes are expected to have outstanding credit history and the papers to prove it. The standard criteria are:

    • consistent credit history with a score of 700 or greater
    • a debt-to-income ratio of 43% or lower
    • ability to make a down payment of at least 20%
    • extensive proof of income and assets
  4. Hire the right broker

    Linking up with the right broker makes finding the right home easier. Brokers with great knowledge of the local area can narrow down your choices to homes that truly match you and your family. Plus, their wide network and negotiation expertise will guide you in submitting offers, finding appraisers, and snagging the best possible price.

  5. Look at listings and tour in the flesh

    Once you’ve hired a broker, start looking at listings with your criteria firmly in mind. Shortlist the homes you really like and work with your broker to schedule a physical viewing. Virtual tours have made home shopping extremely convenient, but a home’s true essence can only be felt if you tour it personally.

Buying the right home takes time but is a rewarding experience. If you’re looking for real estate in Carmel Valley, CA, get in touch with The Peninsula Group Real Estate at 831.595.5045 or info(at)ThePeninsulaGroup(dotted)com. We draw from more than 30 years in the business and work hard to consistently provide the best experience for our clients.