The home buying process can be a very difficult process. Therefore, even if you have experience investing in other investment assets, you may have difficulties in purchasing a home. Most of the time, finding a good real estate agent will go without a hitch, but buying a home is the biggest investment, so it’s important to familiarize yourself with the overall home buying process ahead of time.

Most people buy a house with a mortgage. Of course, you can also buy a house for 100% cash. However, it is difficult to prepare 100% cash, and it is sometimes more advantageous to get a mortgage loan in a time when interest rates are low like now.

How much home you can buy depends on your down payment, income and credit score. Down payment means cash to be paid, income means the tax return that you filed, and credit score means your credibility to the lender. If you are considering buying a house, you should check these three things at least 6 months to a year in advance and find out how much mortgage you can get.

(1) Region selection
Now that your budget has been confirmed, you need to decide on a location. If you’re an office worker, consider the commuting distance, and if you have children, consider the school district. The problem is that it is difficult to find a home that meets all the requirements within a possible budget. Points to consider and cautions when choosing a home location in the United States So, you should make a list of priorities in advance of which ones are more important to you. And it’s good that your priorities reflect the opinions of not only yourself, but also your spouse and family.

(2) Determination of housing type
There are many different types of housing in the United States, including single houses, townhouses and condos. You need to decide which type of home is right for you and your family. Before deciding on a house type, we encourage you to listen to the opinions of people who have lived in single houses, condos or apartments.

A realtor is required in California when buying a home. If it’s your first home purchase or if you’re inexperienced, it’s a good idea to go through the process with a good realtor.

Pre-approval is the stage of finding a mortgage loan. However, it is important to note that the amount shown in advance loan approval may not be 100% of the actual amount. So, even if you have been approved for a loan in advance, it is advisable to have some spare funds ready.
And sometimes there are people who look for a home before getting a pre-approval for a loan. Even if you find a house, you will inevitably be pushed out of competition with other buyers who have received pre-approval, and even if there is no competitor, you may miss the house because it is different from your budget. Therefore, we recommend that you apply for a loan approval in advance before you start looking for a home.

If you have been approved for a loan in advance, you can start looking for a home in earnest. In California, when we see a house, we call it an open house. The seller announces the schedule to several buyers in advance and discloses the house.

(1) Create and send offers
Once you’ve chosen a house you like, write an offer and send it to the seller. An offer is a kind of draft of a contract. When the seller accepts the offer, the contract negotiations begin in earnest.
(2) Counter offer
Sellers also send counter offers (Seller’s Count Offers) to buyers’ offers. A counteroffer is to change the terms of the contract sent by the buyer so that it is advantageous to the seller. Buyers can also receive counter offers from sellers and send back counter offers (Buyer’s Count Offers). A counter offer is a documented contract negotiation. Therefore, there is no particular limit to the number of times a counter offer can be exchanged. On average, negotiations are completed between 1 and 3 times.

(1) What is Escrow?
When the offer is accepted, escrow is opened. Escrow refers to a third-party brokerage company, and when the escrow is opened, about 3-5% of the purchase price of the house must be sent as a down payment. For reference, depositing the down payment in advance is called EMD (Earnest Money Deposit).
(2) Escrow cancellation
In general, if you do not deposit the down payment within 3 days after opening the escrow, the right to negotiate preferentially passes to another buyer. This is called escrow cancellation (cancellation). Please note that the period and regulations for escrow cancellation may vary from contract to contract, so be careful.
(3) Escrow opening period
It usually takes 30 to 45 days from the time the escrow is opened to the time it is closed. (Including an average inspection period of 15 days) In the Eastern United States, escrows are not opened and roles are sometimes replaced by attorneys’ offices or title insurance companies.

(1) Disclosure
The seller discloses the Disclosure to the buyer. In other words, if there is information related to the house that only the seller knew, it can be seen as a process of providing detailed information about it.
(2) Home Inspection
Buyers will conduct a Home Inspection including all the contents of the Disclosure. Hiring an expert to uncover any further problems at home. Inspection takes about 15 days or less, and buyers can observe in person.
(3) Termite Inspection
And a must-have for wooden houses is the Termite Inspection. Termite is a pest that gnaws at houses. Termite damage accounts for a significant proportion of home damage in the United States.
(4) Repair Requests and Credit Requests
If the inspection finds a problem, you can request a repair or credit from the seller. You’ll have to negotiate this with the seller as well, and it’s usually a little cleaner to credit the cost of the repair than it is to the seller to fix it.

An appraisal is the process by which a bank evaluates the value of a home. This is done before the loan is approved, and if the appraised value is too low compared to the purchase price of the home, it can be an appraisal contingency.
The appraisal process is carried out in the deposit and inspection stages at the earliest, and sometimes comes out after the inspection if it is late.

(1) What is Contingency?
Contingency means the conditions under which the contract can be canceled after escrow is opened. A seller and a buyer can each bet on a contingency, and the buyer’s condition for Contention is usually more.
(2) Contingency Removal
Contingency Removal is the stage in which the buyer confirms 100% of the purchase of the house. In other words, the buyer clearly expresses his/her intention to purchase the home. Therefore, if the contract is canceled or a problem occurs after the contingency removal, it is the buyer’s responsibility (including financial loss).
Continence removals are usually made about 15 to 17 days after escrow is opened. (Lon Contingency Removal is after the 20th) Buyers need to double-check if there is anything they have missed before signing the Contingency Removal. This is because if you cancel the contract after signing, you will not be able to get your deposit back.

By the time the Contingency Removal is done, you have almost decided to buy a house. Now that you have decided to buy a house, you need to find out about home insurance in advance. It’s a good idea to decide which insurance to choose in advance as the lender will ask you to pay a year’s worth of home premiums in advance when you get a loan.

The final inspection is a stage in which the buyer directly checks whether the part promised by the seller to be fixed is correct. This step is necessary because the seller may accidentally destroy the house before escrow is closed, even if the seller has not been able to fix it. If you find a problem in this area, you should talk to the seller again.

The final inspection is a stage in which the buyer directly checks whether the part promised by the seller to be fixed is correct. This step is necessary because the seller may accidentally destroy the house before escrow is closed, even if the seller has not been able to fix it. If you find a problem in this area, you should talk to the seller again.

After the final inspection and loan approval have been completed, the down payment is transferred to the escrow company. Various amounts such as the loan amount approved by the bank, the down payment amount to be paid by the buyer, the tax to be paid by the seller, and the existing loan are calculated in the escrow and finally transferred to the seller.

Usually, the loan amount is sent to the escrow company on the day before or on the day of escrow closing. The escrow company then applies for registration of transfer of ownership. Usually, if you apply for registration in the morning, you will be notified about the transfer in the afternoon. When the registration is completed, the owner’s name changes from seller to buyer.

(1) What is Escrow Closing?
The seller undergoes an inspection to sell the house in town, is issued a certificate of occupancy, and passes it on to the buyer. And the title company makes a closing document and closes it on the agreed date.
(2) Escrow Closing Schedule
The escrow closing schedule will also be negotiated with the seller. Buyers tend to prefer Fridays and sellers tend to prefer Mondays. Buyers want to close on Friday, get their keys and move on the weekend, and sellers want to move on the weekend and hand over the keys on Monday.
(3) Closing cost
Closing costs include escrow and title fee, inspection fee, title insurance fee, home insurance fee, registration fee, real estate tax. Normally, Buyer will pay 50% of the escrow fees, prorated property tax, home insurance, and loan fee.
(4) Receive closing package
Upon closing, you will get a copy of the Grant Deed along with other escrow documents for your home. The original will be mailed to you in a few weeks after the closing.

Now you have to move. If the closing and moving schedules were well coordinated, it would be possible to proceed without any problems. Twisted dates may result in staying in a hotel or other residence.

Once the house purchase and moving are complete, it is time to start repairing and managing the houses one by one. There are a lot of old and old houses in California, so you need to study a lot about how to repair and maintain the house. The roof, air conditioning, and electrical systems should also be checked periodically, and if you have a backyard, lawn care should be taken care of as well.