Buying your first home can be exciting, but it can also be dangerous with the hike in the price of a home in Los Angeles. According to statistics, the median price of getting a home in California is $520k. Although it’s expensive compared to other areas in the United States, most individuals wouldn’t mind an expensive house. More so, when it’s close to highways, and other relevant places.
Aside from the price, are there other factors to consider when planning to buy a home as a first-timer? California Movers perform some of the best moving company in the area. In this article, we will be sharing some tips you can use as first time home buyers for easier purchase.
Have a Standard Planning
“By Failing to Plan, You Prepare to Fail- Benjamin Franklin”
Before buying a home, especially as a first-time buyer, you have to plan everything from start to finish. Start by getting a structural plan for your spendings, set a budget, and record daily spendings. Owning a home and renting an apartment is an entirely different ball game as the former requires other maintenance costs.
Having these plans will also help you streamline your funds to what you can afford and what you can’t as you plan to become a first-time homeowner.
Have Emergency Funds
Having an emergency fund is important as it helps you outwit sudden expenses. Get emergency cost of at least 3-6 months budget. That way, you will enjoy peace of mind without all the stress and worries associated with house maintenance and upkeep.
Besides having an emergency fund, keep in check your spendings when shopping for your new home decors, even if it means leaving some rooms empty for a while.
Have a Home Price Range
Before getting all excited and emotionally attached to a beautiful house, it is important to note your monthly budget. Ask yourself, “how much house can I purchase?” It is also wise to set aside some money for other expenses, so ensure your monthly housing cost plus insurance, taxes, and others do not exceed 25% of your monthly income.
Below is the price range of houses in Los Angeles compared to other cities in California.
|City||Median Selling Price|
Source – Real estate market
Get a 20% or More Down Payment.
If your savings for paying the total cost for the house you are buying isn’t coming forth, you can start by saving 20% or more down payment. That way, there won’t be any need to pay for Private Mortgage Insurance.
As a first-time home buyer, if a 20% down payment seems too high for you, you can try low end to no down payment options. However, this choice could be more costly in the long run.
However, before committing to any lender or mortgage company, take a close look at their lender fees, rates, terms, and customer service.
Loan Pre Approval
If you have been able to get sufficient cash to foot the 20% down payment cost, it is time to get the remaining 80% by signing up with a mortgage broker. Ensure you are prequalified for acquiring a loan and also get a pre-approval letter before commencing the home search.
A pre-approval letter tells the seller of your seriousness in buying the property, something a first time home buyer needs to win the market competition. Before getting pre-approved, your lender will verify your financial information/status and then tender your underwriting loan.
To enjoy a more stress-free loan pre-approval, ensure you have a debt-free status as it will free you from payments such as credit card debt, auto loan, or student loan. If you are a first-time homebuyer with zero credit score, you can scout for lenders debt-free homeowner lenders.
Search For Your Home
Now that you have an efficient broker, you can now search for the home of your choice. You can search for sale by contacting a realtor, or you can choose to use an online home search method, depending on the process that best soothes you.
Research carried out by the National Association of Realtors (NAR) shows that about 50% of people purchase homes online, or 28% through real estate.
Some online platforms you can use include Trulia, HotPads, Rent.com, and more.
Check For The Most Suitable Neighborhood.
More than just getting your home’s price, it is also important to include the quality of the neighborhood into your decision. You have to check for factors such as proximity to work, school, home condition, and size.
Some of the most popular neighbourhoods for living in Los Angeles are Glendale, Silver Lake, Beverly Hills, Downtown, China Town, etc.
More About Each City
Glendale – Glendale is one of the most populated cities in LA county.According to the FBI, Glendale is one of the safest cities in America and perfect for raising kids. It is also close to some of LA recreational centers like Travel Town, LA Zoo, San Gabriel mountain, etc.
Silver Lake – If you love a town that doesn’t have the quiet, restful nights, then Silver Lake is the perfect fit. It is filled with great dining locations and young people from various professions.
Downtown – This is the perfect place to live in LA if you want to experience the typical city life. It has a lot of great museums and arts scenes. It is important to note that individuals relocating to Downtown are required to have insurance from moving companies.
However, California Movers provides all the necessary documents and insurance required for carrying out such moves.
California Movers Moving Cost
|Moving Cases||Approx. Cost|
|Studio apartment: 2 professional movers for 3-5 hours||$420|
|Medium size office moving of 15 PCs, all furniture 20-ft. Truck, 3 mans||$1740|
|3-bedroom house, 26-ft. Truck, 4 professional local movers||$895|
|Intrastate move of 3 bedroom home, 4 movers||$3308|
The Route San Francisco to Los Angeles
If you are planning a move from San Francisco to Los Angeles or other areas in California, California Movers offer one of the best moving services in the area. Moving from San Francisco to Los Angeles is about 383 miles from the city centre.
One of the best routes of travelling from San Francisco to Los Angeles is through highway1. The trip exposes you to various amazing sights for an interesting relocation.
Below is a comparison of Los Angeles to San Francisco.
|City||Los Angeles||San Francisco|
|Cost of one bedroom||1940.70||3292.42|
|Median age population||34.2 years||38.5 years|
Other amazing facts that make living in California very interesting are the amazing museums, Los Angeles have about 100 of them while San Francisco has 48.