In addition to your budget, you’ll want to know your current credit score. If it’s been years since you last checked, now is the time. Understanding your credit profile early allows you to address any issues before applying for a loan, potentially improving your terms and avoiding delays once you’re ready to make an offer. Knowing your numbers—both your budget and your credit—puts you in control. And control is exactly what this next chapter should feel like.
MISTAKE #2: FORGETTING HIDDEN COSTS
One of the most common buyer missteps is overlooking the additional costs that come with purchasing a home—the expenses that don’t show up in the listing price but still affect your bottom line. Closing costs are the most common example. They include a variety of fees that can add up quickly, and many buyers fail to factor them into the true cost of a purchase. Some of these costs can also vary depending on your closing date. Items such as prorated property taxes, prepaid interest, and certain lender-related charges may increase or decrease based on when the transaction closes. In addition, buyers should expect fees related to title insurance, and escrow services, all of which are standard parts of a real estate transaction in CA but often underestimated or misunderstood. The specific “hidden” costs you’ll need to plan for will also depend on the type of home you choose as you downsize. A single-family home typically comes with different ongoing expenses than a condo or townhome. Beyond closing costs, be sure to factor in property taxes, homeowners’ insurance, maintenance or repair responsibilities, homeowners’ association or condo fees, and any special assessments that may apply.
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