With a history going back to the 19th century, Pasadena is one of the oldest communities in Los Angeles. The town’s name is derived from the Chippewa Indian language and means “Crown of the Valley.” True to its name, Pasadena is a residential gem with beautiful homes, tree-lined streets, miles of hiking trails, green parks, and a rich cultural district. This makes it one of California’s hottest, most competitive markets. If you are considering moving here, here are five tips on how to buy a home in Pasadena.
Pay Cash If You Can
Because Pasadena is a competitive market, Pasadena Homes for Sale attract many offers and don’t stay on the market long. If you can afford it, consider making an all-cash offer. Paying all cash for a home means you can hasten the process and there is no possibility of your lender delaying your deal. An all-cash offer can also set you apart from other buyers, giving you an edge. It could even attract a discount because a buyer is more likely to drop some contingencies for the promise of a fast deal.
Get ‘Double Qualified’
However, if you cannot afford an all-cash payment (only 3 in every 10 sales in Pasadena are cash deals), you can better your odds by getting “double qualified.” This is to say that rather than apply for pre-approval from one lender, you should apply to two. Two pre-approvals for your mortgage amount from different reputable lenders will show the seller that you are serious and your deal will likely go through. It can also cover you in case the seller has bad blood with one of your lenders.
Set Aside a Down Payment of at least 30%
If you go the mortgage route, you will still need to put down a down payment on a property. This amount usually varies, but 30 percent of the property’s value is a good number. Lenders depend on appraisals to determine mortgage amounts and rates. In a fast-moving market like Pasadena, an appraisal may not always reflect the true value of a home. A 30 percent mortgage protects your deal in case the lender’s appraisal comes in lower, and you need to make up the difference.
Conduct an Inspection Before You Make an Offer
Before you prepare an offer, arrange to have a home inspector assess the condition of the home. If the inspection reveals zero problems, go ahead with the deal. If it uncovers some issues, consider whether you want to take on the risk of covering the repairs, negotiating a better deal, or backing out.
Hire a Team and Close Fast
The standard closing time in the Pasadena market is between 30 and 45 days. However, with the right team of experts, you can achieve a fast close of 15 days or thereabout. Hire a local real estate agent to help you synchronize your financing, house-hunting, and inspection efforts. Your agent will help you find the ideal home, negotiate contingencies, prepare an offer, and close the deal.
Explore Pasadena Real Estate with Bradley Mohr
Pasadena real estate is a fast-paced, competitive market with much to offer. If you are ready to move to the Crown Jewel of Los Angeles, contact real estate expert Bradley Mohr to learn more about living in Pasadena and look at condos, single-family homes, and estates for sale.
