Four Tips for First-Time Silicon Valley Home Buyers

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Today, we’ll be discussing four valuable tips for first-time home buyers in the surrounding Silicon Valley area. Blanca Medellin, a real estate buying agent on our team, joins us to discuss important advice for first-time home buyers. If you’re looking to purchase a home this spring, this is especially relevant to you!

1. Save up for your down payment. In today’s conditions, most lenders require anywhere from 3% to 30% in a down payment. Be prepared to pay more than you initially anticipate.
   
2. Consider any home improvement or other expenses. The total cost is not only your mortgage payment, but utility, landscaping, maintenance, and other monthly bills.
   
3. Shop around for a mortgage. Find someone you’re comfortable with. Review your finances and share your goals to obtain a prequalification letter.
   
4. Get educated on the home buying process. Sit down with us for a one-on-one consultation, free of charge and obligation. We’ll walk you through every step and what you should expect.

If you’re thinking about buying or selling a home in the area, give me a call or send me an email today. We look forward to hearing from you!

Should You Sell Your Home Before Buying a New One?

Want to sell your home? Get a FREE home value report.

Want to buy a home? Search all homes for sale. 

If you plan on selling your current house and buying a new one, there are a few things you need to take into consideration.

The first question to ask is whether you need the equity from your current property in order to purchase a new property. If the answer is yes, we suggest you list the property you’re living in first, in order to have the purchasing power necessary to buy your next home.

If you have the cash in the bank to buy your next home without having to sell, it’s a great position to be in. In that case, you can go ahead and start looking at properties before you even list. However, you should be aware of the possibility that you might have two mortgages at the same time.

Regardless of what you end up doing, it’s crucial to be aware of market conditions. Here in Silicon Valley, it’s a very competitive market; there is a lot of inventory and there are a lot of buyers. In this situation, putting an offer on a home that is contingent on you selling your current home is not going to make you look as powerful as someone else who has already sold their home and has some money in the bank.

In this market, sellers need to be aware of something called rent-backs. Basically, a rent-back is a situation in which the seller asks the buyer to rent back the property from the new buyers. This agreement extends the closing so that sellers can remain in their house, while paying rent to the buyer, as they finalize their new living situation. Many sellers have found this to be a great way to purchase a new home without having to move more than once.

If you have questions about how you can make your move as smooth as possible, or if you have any questions about our local market, please don’t hesitate to reach out to us. We would love to give you a hand!