First-Time Home Buyer Steps in California

Start with pre-approval, not house hunting. Most people start a home search without knowing what they can actually afford. Pre-approval means a lender reviews your income, debts, credit, and bank accounts. Then I tell you the loan amount you qualify for. Pre-qualification is a rough guess over the phone. Pre-approval carries weight when you write an offer.

In California's competitive markets, sellers expect a pre-approval letter with every offer. Without one, your offer goes to the bottom of the pile. I walk first-time buyers through this every week. We pull credit, check income, review bank statements, and send you a letter. Usually within 24 hours.

Budget for the full cost, not just the down payment. Standard loans allow 3% down for first-time buyers. FHA loans allow 3.5% down. Then come closing costs. That's typically 2% to 3% of the purchase price. That includes the appraisal, title insurance, escrow, lender charges, property taxes, homeowners insurance, and HOA fees if the property has them.

On a 600,000 dollar home, expect 12,000 to 18,000 in closing costs on top of your down payment. California requires homeowners insurance. Depending on where you buy, fire or flood insurance may add hundreds per month.

Once you find a home, your agent writes the offer using the standard California purchase form. You'll list your offer price, down payment, loan type, and contingencies. The three standard contingencies are loan approval, appraisal, and inspection.

The loan contingency protects you if the lender denies your application. The appraisal contingency lets you walk away or renegotiate if the home value comes in low. The inspection contingency gives you time to hire inspectors and ask for repairs or credits.

In competitive markets, some buyers waive contingencies. I don't recommend waiving the loan contingency unless you have cash to cover the purchase.

After your offer is accepted, you have a set number of days to complete inspections. Typically 17 days in California. Hire a general home inspector. Depending on the property, you may also need a pest inspection, roof inspection, sewer check, or foundation specialist.

The inspection report lists problems and recommended repairs. You can ask the seller to fix items, give you a credit, or lower the price.

The lender orders the appraisal once you're in contract. If it comes in at or above your offer price, you move forward. If it comes in low, you can renegotiate, bring extra cash to closing, or cancel the deal.

After inspections and appraisal, the lender finalizes your loan. You'll submit final pay stubs, bank statements, and any other documents the underwriter asks for. Do not open new credit, make large deposits, or change jobs during this period. Any of those can delay or kill your loan.

Three days before closing, you'll get a Closing Disclosure. It lists every fee, your final loan amount, interest rate, and monthly payment. Review it carefully. If something looks wrong, call me right away.

On closing day, you'll sign loan documents at the escrow office or with a mobile notary. Once escrow confirms funding and records the deed with the county, you own the home. Your agent hands over the keys.

As of June 1, 2026, today's average California mortgage rates are 6.375 percent for a 30-year fixed, 5.875 percent for FHA, and 5.875 percent for VA. Rates update daily. When you're ready to lock, we'll review current pricing together.

I'm Brett Hickman, and I answer my own phone. No signup, no sales pitch. When you're ready, I'm the loan officer who gets you to the closing table.

Informational only. Not a commitment to lend. Rates subject to change. Equal Housing Lender. NMLS 2010859.