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5 Expert Tips for a First-Time Homebuyer in San Jose

May 17, 2022 | 6 Minute read

San Jose’s diversity and strong local economy make it a great place to live. Located in the heart of the booming Silicon Valley, San Jose residents enjoy, on average, more than 300 days of sunshine each year and plenty of opportunities for things to see and do. From an eclectic and diverse food scene to great schools, San Jose truly has it all — for everyone.

San Jose’s diversity and strong local economy make it a great place to live. Located in the heart of the booming Silicon Valley, San Jose residents enjoy, on average, more than 300 days of sunshine each year and plenty of opportunities for things to see and do. From an eclectic and diverse food scene to great schools, San Jose truly has it all — for everyone.
San Jose’s real estate market is a seller’s market, especially in the white-hot real estate market of 2022. A lack of available homes for sale in San Jose has driven prices up, forcing buyers to face a pricing crunch — making it especially challenging for first-time homebuyers.
The San Jose area has been significantly affected by the hot real estate market. The median home price in San Jose was $1.5M in May 2022 — up nearly 30 percent year-over-year.

To help first-time buyers navigate the competitive waters of San Jose real estate in 2022, we’ve put together this list of 5 expert tips for buying a home:

1. Be sure that you’re ready to commit

…to your home loan, that is. Most mortgage loans offer a 30-year term — making it an enormous financial commitment. And while it’s true that you don’t have to stay in your home the entire time, it is still an important financial decision. Before you commit to a home as a first-time buyer, ask yourself these questions:

  • Am I prepared to commit to this home and city for at least 5 years?
  • Is my income stable, and does it allow me to make the monthly mortgage payments comfortably?
  • Do I have an emergency savings fund that would allow me to cover at least 3 months of living expenses, including my house payment?

2. Save, save, save

Another tip for first-time buyers is to make sure that you have saved enough to purchase your home. Many first-time homebuyers think they only have to save for the down payment, but other costs are associated with buying a home. For instance, first-time home buyers can be surprised to learn about closing costs, including property transfer taxes, agent commissions, home inspection fees, and more. Typically, these costs range from 2 to 5 percent of the home’s sales price and are due at the time of closing. You may have the option to roll your closing costs into your mortgage loan, but keep in mind that this means you’ll be paying interest on the fees over the lifetime of your loan.

3. Maintain your credit profile

When you are trying to buy a home, it’s crucial t to stay on top of your credit score to get the best possible interest rates on your housing loan. Before you begin shopping for your mortgage, obtain a copy of your credit report and review it closely for errors. Dispute any errors and make necessary corrections, and then ensure you are doing all you can to get your credit score in shape. A 1 percent difference in interest rate might not sound like a lot, but it can make a huge difference in how much you will end up paying for your home over the life of your loan.

4. Work with an agent you can trust

Whenever you buy a home, but especially if you are a first-time homebuyer, it’s important to work with a local real estate agent you can trust. Reali agents, located throughout California, are here to serve you, providing a stress-free journey home. Wherever you are headed, our agents will guide you each step of the way, negotiate on your behalf, and provide invaluable local market expertise with industry-leading financing options. If you haven’t yet found the right real estate professional, here are qualities to look for in a real estate agent.

5. Make an all-cash offer

It’s no secret that sellers love cash and often take cash offers on house over traditional mortgage-backed ones. But, as a first-time homebuyer, you probably don’t have loads of cash sitting around — or a current house with equity that you can use to make an offer on a new place. But don’t let that discourage you; in fact, think of us as the rich uncle you may have never had.
Reali’s Cash Offer program allows you to sidestep the competition and use our cash to land a new home faster than ever before. By making a cash offer on a home, you can skip the bidding wars and avoid multiple contingencies. Given the power of a cash offer, wIth Reali’s Cash Offer program, you can call the shots, use our cash to cut in front of the line, skip appraisals, and avoid contingencies. That means a simpler, faster transaction — and a more seamless sales experience.

To learn more about Reali’s innovative sell and buy programs and financing opportunities that can help you buy a new home for cash using our funds, contact us today.

Your home is your biggest investment, so make the most of it. Buy your new house with the power of cash, move in faster than ever before, and let a local Reali Agent handle the rest.

More on Home Buying from the Reali Blog

From your first home to your forever home, Reali has a smart solution to help you on your journey. Learn more about Reali’s products and services across California, and explore real estate topic and trends.

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