Buyer Checklist

Buying a home in Silicon Valley involves dozens of steps, each with its own timeline and dependencies. This checklist organizes the process into clear phases so you always know where you stand and what comes next.

Before you start searching

• Review your credit report and address any inaccuracies (at least 60 days before applying for a mortgage)
• Gather documentation: two years of tax returns, W-2s, recent pay stubs, bank statements, investment account statements, and RSU/stock option documentation
• Determine your comfortable monthly payment, factoring in property taxes ($12,000 to $40,000+ annually on the Peninsula), insurance, and maintenance
• Calculate your available down payment -- 20% is standard for conventional loans on the Peninsula; 10% is possible with private mortgage insurance
• Obtain pre-approval from a lender experienced with Silicon Valley income structures (I can recommend several)
• Avoid major financial changes: do not open new credit accounts, make large purchases, or change jobs during the pre-approval and escrow process

Clarify what you want

• Identify your priority neighborhoods and school districts
• Define non-negotiables vs. nice-to-haves (bedrooms, lot size, commute distance, home office, yard, garage)
• Research neighborhood-specific considerations: noise (Caltrain, El Camino, 101), flood zones, Prop 13 tax implications, and planned development
• Set up a buyer consultation with your agent to align on strategy and communication preferences
• Sign a buyer-broker agreement (required in California as of August 2024)

Finding the right property

• Review listings daily -- new inventory typically hits the MLS Thursday through Saturday
• Attend open houses and schedule private showings for serious contenders
• Request and review disclosure packages for any property you are considering making an offer on
• Drive neighborhoods at different times of day and on weekends to assess noise, traffic, and character
• Research permit history and planned improvements for properties of interest (city planning department websites)

From decision to contract

• Review comparable sales data and discuss pricing strategy with your agent
• Decide on contingency terms based on your risk tolerance and the competitive environment
• Prepare proof of funds documentation and updated pre-approval letter
• Submit your offer with all required attachments before the deadline
• Respond promptly to any counter-offers or requests for highest and best

Offer accepted through closing

• Wire earnest money deposit within three business days (verify wiring instructions by phone -- never by email alone)
• Schedule and attend home inspection, pest inspection, and any specialty inspections within the first seven to ten days
• Review inspection results and negotiate any repair requests or credits
• Remove inspection contingency by the agreed-upon date
• Cooperate with appraiser and lender requirements -- respond to documentation requests within 24 hours
• Review and approve the preliminary title report
• Obtain homeowner's insurance and provide proof to your lender
• Remove appraisal and loan contingencies on schedule
• Review the closing disclosure (settlement statement) at least three days before closing
• Arrange utility transfers: PG&E (or City of Palo Alto Utilities), water, garbage, internet

Final steps

• Conduct final walk-through within five days of closing
• Wire closing funds to escrow (verify instructions by phone)
• Sign closing documents at the escrow office or via mobile notary
• Confirm recording of the deed with the county recorder
• Receive keys and celebrate
• File homeowner's exemption with the county assessor (reduces property taxes by up to $7,000 of assessed value)
• Change your address with the USPS, DMV, banks, and subscriptions
• Change locks and garage codes
• Schedule any planned renovations or repairs

This checklist is your map, but every transaction has its own terrain. I customize the timeline and priorities for each buyer based on the specific property, financing, and competitive situation.