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The most complete guide to buying a home in the Golden State

A thorough, practical guide to every aspect of buying a house, How to Buy a House in California will help you make informed decisions that can save you thousands of dollars. With this bestseller in hand, you'll learn how to:

choose a house and neighborhood
find the right agent
get the most up-to-date information on mortgage options and rates
take advantage of creative financing strategies – from seller financing to government loans
figure out how much down payment you can afford
make an offer and negotiate with confidence for the best price
buy a new house in a development
inspect a house for physical problems and environmental hazards
juggle buying and selling houses simultaneously
successfully go through escrow

The 11th edition is completely updated and provides an easy method for calculating how much house you can afford. Plus, you'll find the current rules for government-assisted loans and the latest resources.

List of Forms
Ideal House Profile
House Priorities Worksheet
House Comparison Worksheet
Family Financial Statement
Directions for Completing the Family Financial Statement

George Devine

Robin Leonard

Marcia Stewart

David Brown

Describe Your Dream House
A. You Know the House You Want to Buy
This book is full of practical, up-to-date information about the financial realities, legal rules, and real estate industry customs involved in purchasing a California house. Two crucial things, however, no book can tell you: the location and type of house you want to live in. No matter how many experts you consult or how many opinions you get, you and only you are qualified to describe your dream house and ideal neighborhood.

Given your family's needs, tastes, and finances, you probably already have a good idea of the type of house you want to buy. Indeed, if you sit quietly for a few moments, shut your eyes, and let your imagination go, you can probably conjure up an image of the house or, perhaps, if you're flexible, several houses that you would love to call home.

Because this is true, we skip the typical first chapter in many home buyers' books, in which the author compares such things as the joys of living on a dusty road in outer suburbia to the convenience of living in a townhouse in a major city. If you aren't focused enough to make these broad choices on your own, you may need to do some critical self-evaluation before beginning your home search.

Tips on Searching New Places
Perhaps you've heard it said that choosing a house's location wisely is as important as picking a good house. In a state the size of California, it's a vast understatement to say you have a lot of locations to choose from. To help you think about specific California areas, we include Appendix A, Welcome to California.

Despite the title, Welcome to California isn't meant only for newcomers to the state . Whether you're a San Franciscan moving closer to a San Ramon job, a New Yorker (or Taiwanese) relocating to Los Angeles, or simply someone unfamiliar with certain California areas, you'll find a wealth of information. In addition, in Chapter 5 we discuss working with a local real estate agent to get essential information on neighborhoods.

But there's still no substitute for your own legwork. Ask your friends and colleagues, walk and drive around neighborhoods, talk to local residents, read local newspapers, check the library's community resources files, visit the local planning department, and do whatever else will help you get a better sense of a neighborhood or city.

Already found the house you want to purchase and are mainly interested in the ins and outs of financing? Skip the rest of this chapter and move on to Chapter 2, How Much House Can You Afford?

B. Don't Be Talked Into Buying the Wrong House
In today's high-priced market, most buyers face an affordability gap between the house they'd like to buy and the one they can afford. Without an organized house-buying approach, there is a good chance you'll be talked into compromising on the wrong house by friends, relatives, a real estate agent, or even yourself.

"Not me, I know my own mind," you say. "Nonsense," we reply. In today's market, almost everyone must trim their desires to fit their pocketbook. Every day, confident and knowledgeable home seekers become so anxious and disoriented that they leap into a deal they later come to regret, sometimes bitterly.

Here is our method to ensure that you buy a house you'll enjoy living in, even if it's substantially more modest than your dream house:

Firmly establish your priorities before you look at a house. Insist that any house you offer to buy meets at least your most important priorities. Do this even if, in buying a house that meets your top priorities, you must compromise in other areas.

 

The most complete guide to buying a home in the Golden State

A thorough, practical guide to every aspect of buying a house, How to Buy a House in California will help you make informed decisions that can save you thousands of dollars.

I. How This Book Will Help You
House-Buying Worries
The Basics of Buying a Good House
A Place to Live for Almost Everyone
Real Estate Websites
How to Use This Book

1. Describe Your Dream House
You Know the House You Want to Buy
Don't Be Talked Into Buying the Wrong House
Identify Your Ideal House Profile
Create a House Priorities Worksheet
Prepare a House Comparison Worksheet

2. How Much House Can You Afford?
The Basics of Determining Housing Affordability
Prepare a Family Financial Statement
How Much Down Payment Will You Make?
Estimate the Mortgage Interest Rate You'll Likely Pay
Calculate How Much House You Can Afford
Tips on Improving Your Financial Profile
Get Loan Preapproval

3. Narrowing the Affordability Gap: How to Afford Buying a House
Why California Houses Are Expensive
Don't Buy a House at All -- Rent and Invest Elsewhere
Fix Up the House You Already Own
Strategies for Buying an Affordable House

4. Raising Money for Your Down Payment
Assisted No and Low Down Payment Plans
Conventional Lenders' No Down Payment Loans
Five and Ten Percent Down Payment Mortgages
Private Mortgage Insurance
How Much Should Your Down Payment Be?
Using Equity in an Existing House as a Down Payment on a New One
Using a Gift to Help With the Down Payment
Borrowing Down Payment Money From a Relative or Friend
Is It a Gift or a Loan? Sometimes It Pays to Be Vague
Borrowing From Your 401(k) Plan
Tapping Into Your IRA
Sharing Equity
Substituting a Second Mortgage for a Down Payment
Secure Your Loan Using Stock as Collateral

5. Working With Real Estate Professionals
Pros and Cons of Working With a Real Estate Professional
Work With a Real Estate Professional Paid by the Seller
Hire and Pay a Buyer's Agent
Hire an Agent by the Hour
Buy a House Yourself With No Professional Help
Finding a Good Agent
How Not to Find an Agent
Getting Rid of a Broker or Agent You Don't Like

6. How to Find a House
The Best Time to Look for Houses
Check the Classified Ads
Visit Sunday Open Houses
Gain Access to the Multiple Listing Service
How to Access Homes for Sale on the Internet
Use an Agent With Good Skills
Enlist the Help of Personal Contacts
Do Your Own House Scouting
Enlist More Than One Agent to Help You Search
Find Foreclosures, Probate Sales, and Lease Option Properties
Shop via TV
Finding a House When You're New to an Area
Online Help With Community and Neighborhood Information
Finding a Newly Built House

7. New Houses, Developments, and Condominiums

8. Financing Your House: An Overview

9. Fixed Rate Mortgages

10. Adjustable Rate Mortgages

11. Government-Assisted Loans

12. Private Mortgages

13. Obtaining a Mortgage

14. Buying a House When You Already Own One

15. What Will You Offer?

16. Putting Your Offer in Writing

17. Presenting Your Offer and Negotiating

18. After the Contract Is Signed: Escrow, Contingencies, and Insurance

19. Check Out a House's Condition

20. Legal Ownership: How to Take Title

21. If Something Goes Wrong During Escrow

Appendixes

A. Welcome to California

B. Real Estate Websites

C. Planning Your Move

D. Forms

Index

"One of the most detailed real estate books you will ever read.... Filled with practical advice..."

 

"A valuable resource for California homebuyers and real estate professionals throughout its many editions."

 

"Invest in this book... it is virtually impossible to think of anything they left out because they have anticipated every question home buyers might have."

 

Ralph "Jake" Warner stepped aside as day-to-day manager of Nolo in 2004, after 32 years as president of the company. Widely regarded as a pioneer of the self-help law movement, Warner founded Nolo with Ed Sherman in 1972. He began publishing do-it-yourself law books written by him and his colleagues after numerous publishers rejected them. When personal computers came along, he added software to many Nolo books. When the Internet arrived, he pioneered online marketing of books. In addition to running the company, Warner was an active editor and author. He wrote many books, including Get a Life: You Don’t Need a Million to Retire Well and How to Run a Thriving Business. Today, he serves as chairman of Nolo's board of directors. He has also embarked on a new business venture: TallTales Audio, an audio book production company devoted to children's storytelling, online and on CD. In guiding Nolo, perhaps the greatest challenge Warner faced was an attack by the Texas legal establishment in 1998. Texas lawyers tried to brand Nolo as practicing law without a license. The ensuing battle galvanized Nolo, whose final victory has become part of Nolo legend.