House Hunting in the East Bay: 10 Steps to Success

Are you planning to buy a home soon in the East Bay? Is it your first time buying a home in the area? If so, you probably have a lot of questions about the house hunting process. Have no fear! Bridgepoint Funding, your East Bay mortgage lender, has created a list of house hunting steps to get you off on the right foot.

House Hunting Steps for East Bay Home Buyers

Every house-hunting scenario is different, because every home buyer is different. But there’s a certain sequence of events that usually takes place. Here are the steps we recommend taking, when shopping for a home in the East Bay.

1. Set a housing budget.

You can create a basic home-buying budget for yourself, by comparing your net monthly income to your monthly expenses (including savings account contributions, lifestyle expenses, etc.). How much money is left over each month for a mortgage payment? Have a maximum budget in mind before you start talking to mortgage lenders. Many financial advisors recommend that you spend no more than 28% – 33% of your monthly income on a mortgage, though this is just a general rule. Most importantly, be sure to keep an emergency fund in the bank, for unexpected outlays like car repairs, medical bills, etc.

2. Get pre-approved by a mortgage lender.

Getting pre-approved by a mortgage lender gives you an advantage as you shop for a home in the East Bay. Pre-approval is when the lender reviews your financial situation and tells you how much you’re qualified to borrow. One of the advantages is that sellers will take you more seriously if you’ve been pre-approved for a loan. It also allows you to narrow down the house hunting process to the homes you can actually afford, based on your financing. (Related: Fixed versus adjustable mortgage loans)

3. Identify housing needs versus wants.

Create a list of the important features you need from a home. These are the things you cannot change, such as the location and the number of bedrooms and bathrooms. In a separate column, jot down the features you would like to have but can live without. It’s important to keep needs and wants separate in your mind, and on paper. This kind of list will help you narrow down the East Bay housing market to the most suitable properties. Give your real estate agent a copy as well. And speaking of agents…

4. Find an East Bay real estate agent.

Once you’ve been pre-approved by a lender, you can find a real estate agent to work with. Real estate agents have access to certain tools that can help you find a home faster, such as the MLS and professional networks. Then can also help you evaluate the asking price and make a smart offer. You’ll want to choose an agent who is familiar with the East Bay city (and the particular neighborhood) where you want to buy, because market conditions vary from place to place.

5. View homes online.

Familiarize yourself with the three biggest websites for property listings. These are Realtor.com, Trulia.com and Zillow.com. Some homes will be listed across all three sites, while others will be exclusive to just one site. So you’ll want to use all three when searching for homes in your area. This will give you a more complete picture of what the East Bay real estate market has to offer. If you’re interested in distressed properties (short sales, foreclosures, etc.), consider using RealtyTrac as well.

6. Research neighborhoods.

When you buy a home in the East Bay, you’re also buying into the area around the home. So research the different neighborhoods and communities in the area where you want to buy. If you’ve lived in the area for some time, this will be fairly easy. If you’re new to the area, ask your real estate agent which neighborhoods match your lifestyle and preferences (demographics, schools, price range, etc.).

7. Create a short list.

Once you’ve used the internet to view homes online, you can create a “short list” of homes you want to see in person. Give this list to your agent. Your agent should also create a list of homes that match your needs, using the MLS and other tools. The more houses on the list, the better chance you have of finding the right one for you.

8. Visit and evaluate homes.

When visiting a particular property, evaluate it against your list of needs and wants. You can even print out a separate list for each home and check things off as you walk through. Write the address at the top. Taking notes about each property will help you recall the details later on. You can then decide which homes you want to see for a second time.

9. Consider the “comps.”

Once you’ve found a house that checks all of your boxes, you’ll want to evaluate the seller’s asking price. Some sellers come onto the market with a reasonable asking price based on recent sales trends. Others come onto the market high. You can use comparable sales, or comps, to evaluate the price. These are similar homes that have sold in the same area recently. Your real estate agent should help you with this — it’s one of the key services they provide for their clients.

10. Make an offer.

When you’ve found the right home for you, make a smart offer by using the comps mentioned above. You might even want to include the comps with your offer, so the sellers will know how you came up with your figure.

This is the first in a series of tutorials on buying a home in California’s East Bay region. We will be posting new lessons on a weekly basis, along with our housing market updates.

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Need a Mortgage Loan?

Located in Walnut Creek, California, Bridgepoint Funding is your East Bay mortgage lender! We have been serving home buyers in this area for many years. Our dedicated team has decades worth of combined knowledge and experience.

We offer a wide variety of loan programs and options, including FHA, conventional, fixed-rate loans, ARM loans, etc. We also go to great lengths to educate East Bay home buyers and mortgage shoppers — more so than any other lender.

Please contact us today if you have questions about getting a home loan.