Before viewing California homes, agree on what your goal is - needs versus wants

Decide what you need, what you would like and what you can live without in a new home. Make a wish list of everything you would like in a home, and rate the different categories in order of importance to you. If you "must have" a view, will you forego a fireplace if you find a home that has almost everything else on your list? These are decisions you will have to make when viewing California homes.

The type and size of home you buy will be determined by what you can afford, what meets your needs and the location of the home. What style of home do you want: split level, ranch, townhouse, condominium, etc.? How many bedrooms and baths? Do you need a two-car garage?

Prioritize "needs" then "wants." Shop for a home that meets the needs and some of the wants.

HAVE AN OPEN MIND BEFORE LOOKING AT HOMES, Not all of the California homes you look at will be decorated to your tastes. Remember that walls can be painted, carpeting can be changed and kitchens can be updated. Try to use your imagination when viewing houses. Look beyond the current owners' decorating tastes and imagine what your furniture will look like in the house with the walls painted to suit your decorating tastes.

Just as you must picture the positives when viewing California homes, also consider the negatives. Some features can't be changed, unless you want to pay for costly major reconstruction. Basements can't be added, second stories cost a fortune and even additional bathrooms can be extremely expensive. Also, be aware of where the property line begins and ends. If that narrow driveway can't be widened because it's already squeezed between the house and property line, will your large SUV clear the driveway?

Focus on the task at hand. Are you looking for a great deal or a home you can enjoy for many years? Many people miss out on a great home because they keep looking for that deal - while someone comes along and buys the perfect house right from under them.

Quick Tips

• Tell your agent what is important to you: transportation, medical centers, schools, etc.
• Check the noise level - is the property near a highway or interstate?
• Look at the neighborhood - how do neighbors maintain their homes?
• Will the children have other playmates in the area?
• Are you near main travel arteries or commuter vessels necessary for travel to and from work?
• Take pictures of your furniture with you as you look at houses to better picture your pieces in a room.
• Make a columnar comparison of the properties with your specific needs and wants and whether each property has them.
• Rank every 3 houses shown in order of preference. Use a separate list for each spouse, if married.
• If sellers have children or pets, recognize them and you will be a step ahead.
• When viewing homes try to hold in emotion and excitement to not tip sellers of your desire to own that specific home.
• If you see a home advertised in the paper, a yard sign or a For Sale by Owner sign, call your Realtor first.
• View California homes when there is plenty of light; it's too hard to view homes after dark.
• Be available to go see new listings as soon as they become available.
• Ignore furnishings and color. Picture your personal items in the house.
• Look out the windows. What you see is what you will always see. Make sure you like it.
• If you are looking at California real estate re-sales, look for location, floor plan, utilities and structural soundness. Don? be "blinded" or unduly influenced by fresh paint and/or new carpet.
• Don't assume everything you see in the house (drapes, ceiling fans) is being sold with the house. Ask!
• If you really like a particular property do not place a lot of conditions on the contract because this could cause the seller to reject the offer.
• When making an offer, make the best down payment offer you can. Your offer will carry more weight, and your payments will be less.
• Write a personal note to go with your offer. All other factors being equal, sellers will go with the buyers they "know."
• Get into the California real estate market even if you can't get all the fixtures you want in your first house.
• Don't get so emotionally involved with the house that, if you fail to purchase it, it becomes the standard for everything else you look at. This compromises your ability to make a second choice.
• Contracts should always be contingent on a home inspection, a good investment.

Tax deductible moving expenses

When you meet the IRS's definition of a qualifying move, the following items are tax deductible:

• The cost of trips to the area of a new job to look for a home. Your home shopping expedition does not have to be successful for the cost to be deductible.
• The cost of having your furniture and other household items shipped, including the cost of packing, insurance, and storage for up to 30 days.
• Certain costs associated with the sale of your old home and purchase of the new one. These expenses, including California real estate commissions, legal fees, state transfer taxes and appraisal, could be used either to reduce the gain on the sale of the previous home or to boost the basis of the new one. But it's usually beneficial to count them as moving expenses up to the allowable dollar limits, because that gives you an immediate tax benefit.
• The cost of getting your family to the new home town, including food and lodging expenses on the trip.
• The cost of lodging and 80% of food expenses for up to 30 days in the new home town, if these temporary living expenses are necessary because you have not yet found your ideal home or it is not ready when you arrive.

Getting prequalified

Most California Real Estate Agents recommend that home buyers get pre-qualified with a lender before selecting a home to purchase. This way you will have the best information about the right price range for your pocketbook.

Reasons to get prequalified

• With pre-qualification, you can determine which loan program best fits your need and which programs you qualify for.
• You will know exactly how much you are qualified for. It's no fun to find your "ideal home" and then find out you can't afford it.
• Your monthly payment will be set. This will allow you to budget your money before making this large investment.
• It shows you what the down payment and closing costs will be.
• If you are a first-time buyer, you may be able to qualify for a special first-time buyer program which may allow you to afford more home for your money.
• If you feel you would like and can afford a higher mortgage payment but are not able to meet qualifications, co-mortgagor financing may be made available to you.

Take charge of your credit

Gone are the days when a hopeful couple sat across the desk from their local banker anxiously awaiting his decision on their loan application. Today, the fate their loan and the rate of their interest hinges on a computer-generated number, their credit score.

What's the score?

The FICO credit score reflects dozens of parameters in one's financial history. For years, this number-named for developers, Fair, Isaac & Company-was a tight guarded secret. Congress has now secured your right to know - take advantage if it.

• Score 700 - 850-smooth loan process; best interest rates
• Score 550 - 699--medium risk; higher interest rates
• Score 300 - 549-sorry, no loans or credit cards

Know Your Score

Before you talk financing, send for your credit report and FICO score. If there are errors or other surprises, contact creditors to make corrections or negotiate settlements. Also, be sure to notify the credit bureau of your dispute.

Legitimate black marks on your credit won't disappear quickly. (It takes seven years; ten for bankruptcy.) However, time and your diligence can turn things around. Lenders will give recent responsible activity due consideration.

In our credit-driven society, taking charge of your credit should be an on-going process. Your FICO score is a snapshot in time, not set in concrete. Review it each year for errors that may have crept in and to monitor your progress. You have the power to know it, raise it, and maintain it.

What Helps:

• Pay all bills-and pay on time
• Maintain 2-4 credit cards
• Close unused credit cards
• Keep balances well below the limit
• Pay more than the minimums
• Establish long-term credit history

What hurts:

• Too many credit cards or zero care
• High non-mortgage debt
• Delinquent accounts
• Frequent job or address changes
• Charge Off's (bills marked uncollectible)
• Bankruptcy

BIG THREE CREDIT BUREAUS
Equifax Information Services, LLC
1-800-685-1111

Trans Union LLC Consumer Disclosure Center 1-800-888-4213

Experian
1-888-E XPE RIAN

Final Walk-Through

Before you have your closing, it's important that you have the final walk-through on your new home. This is your final opportunity to make sure that everything is in working order and that any repairs you specified in your contract have been completed to your satisfaction.

The walk-through usually takes place 24 to 48 hours before your scheduled closing date. Allow yourself plenty of time for the final walk-through. Take a checklist with you that includes all of the changes or repairs you specified in your contract. Go from room to room, attic to basement, front yard to backyard.

Final Walk-Through Checklist

• Try all light switches to make sure they work. Turn them on and off. Try all of the electric outlets. Bring a small plug-in night light with you to test the outlets.
• Turn on all hot and cold water faucets, including showers, bath- tubs, washing machine connections and laundry tubs. Don't forget to test the outside faucets.
• Flush all of the toilets.
• If there are any rugs in any of the rooms, lift them up and peer underneath to check for broken tiles, burns and stains
• In the kitchen, try all of the appliances that are staying. Turn on the stove, oven, microwave and dishwasher.
• Turn on the heat and air conditioning.
• Try the garage lights and automatic garage door opener.
• Try the keys to all of the locks. Make sure the looks are functional and that you have keys for all of the doors. Locksmiths can be very expensive, and you don't want to find out on moving day that you can't access one of the entrances.
• Try the exhaust fans, if any, in the kitchen, attic and basement.
• Test the basement sump pump.
• And last, make sure all of the items in the house that are supposed to stay with the house when you take possession are still present. It would be a shame if you discovered that the beautiful dining room chandelier that you fell in love with the first time you saw it was replaced with an inexpensive one on moving day. Check the perennial plantings in the yard. Landscaping is costly, make sure that the plants you saw when you made your offer have not been carted off with the sellers.