How to Buy a Home in Southern California
Your comprehensive step-by-step guide to navigating the home buying process. From mortgage pre-approval to getting your keys.
The Home Buying Process
Assess Your Financial Readiness
Review your credit score, savings, and budget to understand your buying power.
- Check your credit score (aim for 680+)
- Calculate your debt-to-income ratio
- Save for down payment (typically 3-20%)
- Budget for closing costs (2-5% of purchase price)
Get Mortgage Pre-Approval
Work with a lender to determine how much you can borrow.
- Compare rates from multiple lenders
- Gather required documents (income, assets, debts)
- Understand fixed vs variable rates
- Get a pre-approval letter valid for 90-120 days
Find a Real Estate Agent
Partner with a licensed agent who knows your target market.
- Look for local market expertise
- Check reviews and references
- Understand buyer representation
- Discuss communication preferences
Search for Properties
Define your criteria and start viewing homes that match.
- Create a list of must-haves vs nice-to-haves
- Research neighborhoods and schools
- Attend open houses and private showings
- Take notes and photos of each property
Make an Offer
Submit a competitive offer with appropriate conditions.
- Research comparable sales
- Include contingencies (financing, inspection, appraisal)
- Provide earnest money deposit (typically 1-3%)
- Be prepared for counter-offers
Home Inspection & Due Diligence
Hire professionals to inspect the property thoroughly.
- Book a certified home inspector
- Review HOA documents and disclosures (for condos)
- Check for major issues (foundation, roof, systems)
- Negotiate repairs or price adjustments if needed
Finalize Your Mortgage
Complete your mortgage application and secure financing.
- Submit final documentation to lender
- Complete property appraisal
- Review and sign mortgage commitment
- Arrange private mortgage insurance (PMI) if needed
Close the Deal
Sign the final paperwork and receive your keys.
- Review closing documents with your escrow officer
- Arrange title insurance
- Complete final walkthrough
- Transfer funds and receive keys
Ready to Start Your Search?
Browse thousands of listings across Southern California. Our powerful search tools help you find the perfect home.
Frequently Asked Questions
How much down payment do I need to buy a home in California?
In California, the typical down payment ranges from 3% to 20% of the purchase price. FHA loans require as little as 3.5%, while conventional loans typically require 5-20%. A larger down payment means lower monthly payments and no private mortgage insurance (PMI) requirement if you put down 20% or more.
What is mortgage pre-approval and why is it important?
Mortgage pre-approval is when a lender reviews your financial situation and commits to lending you a specific amount. It shows sellers you're a serious buyer, helps you understand your budget, and locks in an interest rate for 60-90 days. It's different from pre-qualification, which is a less formal estimate.
What are the closing costs when buying a home in San Diego?
Closing costs in San Diego typically range from 2% to 5% of the purchase price. They include escrow fees, title insurance, appraisal fees, home inspection, lender fees, and prorated property taxes. First-time buyers may qualify for assistance programs to help cover these costs.
Should I buy or rent in the current market?
The buy vs rent decision depends on your financial situation, how long you plan to stay, and local market conditions. Generally, buying makes more sense if you plan to stay 5+ years, have stable income, and can afford the down payment and carrying costs. Use a rent vs buy calculator to compare your specific situation.
What is a home inspection and is it necessary?
A home inspection is a thorough examination of a property's condition by a certified inspector. While not legally required in California, it's highly recommended. It can reveal hidden issues like structural problems, outdated wiring, plumbing issues, or roof damage that could cost thousands to repair. The cost is typically $400-$600.
How do I choose the right neighborhood in San Diego?
Consider factors like commute time, schools, safety, amenities, future development plans, and property values. Visit at different times of day, talk to residents, check crime statistics, and research zoning plans. Your real estate agent can provide insights on San Diego neighborhood trends and values.