How to Buy a Home in Alhambra?

By : Alturas Realty

The real estate market of Alhambra is undoubtedly one of the most active and competitive housing industries in the United States.

Whether you are planning to buy a home in Alhambra for your family or buy property as an investment, Alhambra will amaze you with its high-profit rate, especially in long-term investments.

Being a home to many leading educational institutes of California as well as being a hub to many small businesses and startup companies, buying a home in Alhambra is a worthy decision.

However, as profitable as Alhambra real estate market is, it is also quite complex. So following the right path and making smart moves throughout the buying process is critical to make your home buying experience in Alhambra successful and profitable.

Table of Contents

Step-By-Step Guide to Buy a Home in Alhambra, CA

Here, we have enlisted a complete step-by-step guide on how to buy a home in Alhambra, California. So, let’s dig in….

1. Mark Your Budget and Start Saving for the Down Payment

Saving for a down payment is one of the biggest financial aspects of buying a home in Alhambra. Although, the down payment is considered to be 20% of the total home’s cost. However, certain mortgage programs allow buyers to pay around 3% to 5% as a down payment.

Therefore, you should start saving money for a down payment before finding your dream home in Alhambra.

2. Find a Suitable Loan Scheme and Get Pre-approved for a Mortgage

Whether you are a first-time home buyer or a seasoned investor, many mortgage programs fulfill your needs and lend you money to buy your dream property in Alhambra.

Also, every mortgage program has different eligibility criteria and regulations.

Here, we have enlisted a few mortgage programs available in Alhambra. Let’s have a quick look at them!

Fixed Rate Mortgage (FRM) Loans: It is the most common type of mortgage loan for buying property in Alhambra. It has a fixed-rate interest ratio, and it doesn’t change during the paying back of the loan money.
Adjustable Rate Mortgage (ARM) Loans: In it, the interest payment may change depending on the condition of the real estate and economic market. However, a certain time limit is set before the interest rate changes.
Federal Housing Administration (FHA) Loans: These loans are secured and powered by the Federal Housing Administration of California with minimum mortgage rates and a down payment ratio.
Veterans Affairs (VA) Loans: This mortgage loan program is available for veteran servants and their families. The Department of Veterans Affairs powers it and has low-interest rates with no down payment.
United States Department Of Agriculture (USDA) Loans: This mortgage program is particularly for people with low to moderate income from rural areas. It doesn’t have down payment requirements as well as credit score fulfillment criteria.
Fannie Mae Home Ready: It is for moderate-income holding borrowers, and first-time homeowners and repeat buyers are eligible for this loan.
Home Possible Mortgage Loans: Home Possible and Home Possible Advance are two mortgage loan programs created by Freddie Mac. It has down payment criteria from 3% to 5% and is the best option for first-time and young home buyers.

So, after thorough homework, make sure that you choose the mortgage programs that fulfill your financial needs and that their eligibility criteria match your situation.

And then, get yourself a pre-approval of a mortgage loan from the lender. This authenticates that you are an eligible buyer with enough financial assets to buy a home from the seller.

3. Get Yourself a Reliable Real Estate Agent

Getting a reliable real estate agent for your home-buying process in Alhambra is critical. Your agent will not only make your experience easy, smooth, and trouble-free but will open hundreds of gates with better housing options.

From finding the right home from all over Alhambra to managing the payment and legalities of the process, hiring a reliable real estate agent can be your best decision.

While choosing a real estate agent, pay attention to the following aspects:

Years of experience
Number of transactions and deals in last year
Reviews and complaints

4. Start Searching for Your Dream Home

Here comes the most exciting part of your whole home-buying journey, your “Dream Home” hunting. However, it is also the most time-consuming, effort-requiring, and boring process!

Before starting the search for your home, understand the needed space for your family and nearby transportation options, and reach towards necessities like grocery stores, schools and hospitals.

You can also work on specific neighborhoods in Alhambra that suit your or your family’s needs. Here are five ways by which you can find your dream home in Alhambra:

Begin your search by asking for referrals from your family and friends. They may find a home for their needs in their neighborhood, with relatives, or in the neighborhood.
Look for digital options like home inventories, listings, and advertisements on social media platforms like Facebook.
Drive in your targeted neighborhood and find signs of “On-Sale” and “Open Houses.” Visit the staging and open houses to review homes.
Ask your real estate agent to find a home for you.

5. Make an Offer to the Selling Party

Once you find the home of your dreams in the beautiful city of Alhambra, it is time to make a compelling offer to the selling party and start the chain of negotiations until they are convenient to sell their home to you or you decide to step back from the offer.

In the offer letter, your real estate agent will include your pricing offer, buying condition, and other details. And To convince the sellers, you may compliment the home and show flexibility. However, make sure not to sound competitive for the deals.

Once the offer letter is sent to the seller’s real estate agent, you may receive an answer from them, either accepting the offer or rejecting the offer with space for negotiations. Then, your agent will issue a counteroffer until the deal is closed or dismissed.

6. Schedule Home Inspection

Before closing the deal, you may have to schedule a professional home inspection session to truly understand the home’s condition and worth. In this session, the following aspects of the houses are observed:

Structural defects
Roof condition
Working on the HVAC system
Electric system
Plumbing and drainage system
Condition of doors, windows, and cabinets
Tiles, walls, and ceiling condition
Working fire alarms and carbon mono-oxide detectors
Pests and mold infestation

Through this home inspection, you will have a clear image of the worth of your potential home. And by this, you can negotiate the rates with the seller.

7. Close the Deal

Finally, this is the step of getting the house keys and furniture, painting, and other products. But before this, your real estate agent will do hundreds of legal paperwork for the buying process along with paying the closing fees, which can be between 2% to 5% of the total property’s cost.

How to Buy a Home in Alhambra FAQs

What are the eligibility criteria for buying a home in Alhambra?

The eligibility criteria for buying a home in Alhambra include having a credit score of more than 650, having enough funds for a down payment, having an appropriate debt-to-income history, and having a stable income. You may also need many financial documents for buying a home, like bank statements, paid utility bill receipts, tax returns, and investment account statements.

I am not a resident of California, can I still buy a home in Alhambra?

There are no restrictions regarding citizenship and buying property in California. Therefore, a non-US resident can buy a home in Alhambra as long as you are fulfilling the eligibility criteria and have enough money to afford a home.

How long does it take to buy a home in Alhambra?

Buying a house in Alhambra is a prolonged and complex process. On average, finding the right home to buy will take around 2 to 3 months, while negotiations, inspections, and closing the deal will take around 3 to 4 months. So, all together, buying a home in Alhambra can take around 5 to 6 months.

Final Thoughts

Ready to buy a home in the exciting city of Alhambra but don’t know how exactly you have to proceed?

No need to worry because now you know it! From saving money for a down payment, follow the steps rightly and make your buying process profitable, smooth, and quick.