Home buying made easy

Decisions made easy

Are you considering purchasing a home? Whether it's your first time buying or you're thinking about upgrading, you're likely already researching to see if it's a wise decision. In these initial stages, it's crucial to assess your financial readiness and understand the current real estate market.

Could buying a home improve your financial situation? Some individuals choose to buy a home primarily for financial reasons. Studies indicate that in California, the costs of purchasing and owning a home become lower than renting after just three years, supporting the idea that "buying a home pays off in the long run."

Others decide to buy a home because they need more space for a growing family. Factors like school districts, job opportunities, or proximity to extended family also play significant roles in the decision-making process. There are many reasons why someone might want to buy a home, but once you decide it's the right time for you, the next step is to determine your budget.

Run the numbers

How much can you afford? Lenders typically advise that your total monthly debts should not exceed 40% of your monthly income, and your monthly mortgage payments should be no more than 32% of your income. You can use our mortgage calculator to estimate your potential spending on homes at different price points. Another guideline is to avoid purchasing a home that costs more than five times your annual income. Many people are pleasantly surprised by the quality of homes they can afford when combining their income with a co-borrower’s, but the best way to find out is to explore the current market listings.

Get prequalified. Reach out to a reputable lender who can quickly inform you about your loan eligibility. A brief conversation, often under 15 minutes, can provide clarity on the best mortgage options for you and the loan amount you qualify for, enabling you to make informed offers on potential homes.

Work with a Realtor

Consult with a real estate agent. A great agent is attentive and eager to understand the type of home you want to buy. Make a list of your home requirements and share them, even if your vision isn’t entirely clear yet. Ensure you request regular updates on available properties that meet your criteria. A proficient agent will use your list of must-haves to provide you with an active home inventory or send email updates with matching listings. You can use our Find an Agent page to connect with the right professional.

Explore the Active Realty site. Our Home Finder tool offers real-time updates on available homes, with search filters to help you find properties that meet your specifications. Even if you're unsure of the exact type of home you want, browsing the current listings can help you refine your preferences.

Let's make an offer

Visit Homes. Discuss with your agent which homes you’re most interested in within your budget, and have them schedule viewings. You can make these requests via the Active Realty mobile app or directly through your agent.

Make an Offer. Once you’ve found a home you want to purchase, consult with your agent to determine a suitable offer price.

A skilled agent is invaluable as they regularly submit offers for multiple clients in various areas, giving them a keen insight into crafting competitive offers. Depending on the market conditions, your agent might suggest offering below the asking price if there's little competition or the property is overpriced, or above the asking price in more competitive scenarios.

From process to closing

Submit the Offer. Once you’ve found a home you want to buy, discuss with your agent the appropriate amount to offer. A skilled agent, experienced in submitting offers for various clients, can help you craft a competitive offer, advising on whether to bid below the asking price in a less competitive market or above it in a hot market.

Your agent will guide you through these negotiations to reach an agreement, leading to a contract with the seller. Next, schedule a home inspection to uncover any hidden issues. If significant problems arise, your agent can help negotiate repairs or a price reduction.

Your lender will require an appraisal to ensure the home's value aligns with the loan amount, while you finalize your mortgage application. During closing, you’ll review and sign documents, pay closing costs and any remaining down payment, with your agent and a closing attorney or escrow officer assisting. Before the closing date, conduct a final walkthrough to ensure the home is in the agreed-upon condition. On closing day, you’ll complete the paperwork, transfer funds, and receive your new home’s keys, with your agent ensuring a smooth transaction throughout.