3 Things to Know When Buying a Home in 2024

If you’ve been looking to buy a new home in the past couple of years, you’ve been hammered by economic shifts, COVID recovery and the lack of inventory – especially in Long Beach. Now may be the ideal time to make the move.

The Highest Hurdle, Budgeting for a Downpayment.

The idea of budgeting and saving for this type of monumental investment is intimidating (to say the very least). But rest assured, you can do it.

One approach I’ve found effective is to familiarize yourself with the costs, upfront expenses and the many loan programs available. As an agent, for almost 19 years, I can help you take a strategic look at your budget and process before you even get started. So when your dream home goes up for sale (whether it is one month or two years from now) you are ready to make a solid offer.

Here are key considerations I and many experts recommend you have a grasp of prior to looking for a home:

Down Payment: Saving for a down payment is often first and foremost on the mind of a new home buyer. And while every home buyer’s path is different, there’s a common misconception that putting 20% of the purchase price down on a home is required. It’s not! In fact, the average amount down in Long Beach is closer to 8%. And may be as low as 3.5% in many cases.

To navigate through the complex lending landscape, reach out to me and we can go over various loan types, down payment assistance programs and what each requires. I can also provide solid recommendations for loan professionals that can help.
Closing Costs: The line item expenses, in my experience, that are most overlooked include closing costs. These are a collection of fees and payments made to various parties involved in your transaction. The best way to understand what you’ll need to bring to the closing is to work with a trusted lender. I can certainly help, but they should have all the answers to the questions you might have.
Earnest Money Deposit (EMD): This is a deposit, to be put into escrow within 3 days of acceptance as a show of “Good Faith” toward the purchase of a home. It usually runs between 2-3% of the home purchase price. Rest assured this deposit is included as part of the total down payment of the home and is protected for a predetermined period of time. Traditionally, the higher the EMD the more motivation is shown to the seller. One of my goals is to shape an offer with an EMD that is best for your situation, fits the sellers’ expectations and satisfies any and all local area requirements.

To be a home buyer in this market is to be informed. Let’s connect so you have a seasoned professional by your side to answer any questions you may have along your journey.