HOME BUYING

First-Time
Buyer Guide

A clear and practical introduction to the homebuying process in California, from understanding your options to getting the keys to your new home.

Last updated:

What you’ll learn.

A simple overview of the steps, key terms, and important considerations when buying a home.

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01 / THE BIG PICTURE

Understanding the homebuying process.

Buying a home is an exciting journey. While every experience is unique, the process generally follows a few key stages. Understanding the big picture can help you feel more prepared as you explore your options.

What is a home purchase timeline?

Think in stages: preparation, searching, an accepted offer, investigations and financing, then closing. Your search can take longer than the transaction itself. Set a calendar with your agent and lender once terms are agreed; the contract and your circumstances determine the deadlines.

Who is involved in the process?

Your agent helps with the search and transaction. A lender evaluates financing; inspectors examine condition; an appraiser estimates value when needed. Escrow and title professionals help coordinate funds, documents, and ownership records. Ask each professional what they handle and how they will keep you informed.

What are common costs to be aware of?

Plan for the down payment and transaction expenses, including possible loan, inspection, appraisal, title, and escrow charges. Ownership also involves taxes, insurance, utilities, maintenance, and sometimes HOA dues. Ask for written estimates and distinguish money due before closing from money due at closing.

How does the California homebuying process work?

Buyers generally prepare, search, negotiate a written agreement, review the property and financing, and complete escrow. California transactions may involve seller disclosures and local hazard information. What applies depends on the property and transaction; ask your agent to explain the documents and your contract deadlines.

Further reading: California DRE: First Home California (opens in a new tab)

02 / FINANCING BASICS

Get comfortable with financing.

Understanding a few terms makes conversations with a lender easier. Ask for explanations you can compare in writing.

What is mortgage pre-approval?

A lender gives a preliminary assessment of what it may lend after reviewing financial information. It helps frame your search, but is not a guaranteed loan. Approval can still depend on the property, updated documents, and other conditions. Ask what was verified and when the letter expires.

What is a down payment?

The portion of the purchase price you pay from your own funds rather than borrowing. The amount depends on the loan and your situation. It is separate from closing costs. Ask a lender how different amounts affect the payment, mortgage insurance, and funds remaining after closing.

What are principal and interest?

Principal is the amount borrowed that remains to be repaid. Interest is the charge for borrowing. Your full housing expense can also include taxes, homeowners insurance, mortgage insurance, and association dues. Compare the whole payment and ongoing costs, rather than principal and interest alone.

What are closing costs?

Expenses associated with completing the purchase and loan, separate from the down payment. They may include lender charges, title and escrow services, recording fees, and prepaid items. Review the Loan Estimate and Closing Disclosure with your lender; cash to close also reflects deposits, credits, and other adjustments.

What is the difference between pre-qualification and pre-approval?

Lenders use these labels differently. Either can describe a preliminary lending assessment, with different levels of verification. Ask whether income, assets, and credit were reviewed, what conditions remain, and whether the estimate is based on information you supplied or documents the lender checked.

Further reading: CFPB: mortgage questions (opens in a new tab) · Pre-approval explained · Understanding your payment

03 / FINDING THE RIGHT HOME

Find what fits your everyday life.

A useful search starts with priorities and a consistent way to compare homes.

How do buyers begin a home search?

Write down your preferred locations, essential features, and flexible preferences. Consider your daily routine and moving timing. Discuss your budget with a lender and your search criteria with your agent. Keep a short comparison sheet so that attractive photos do not outweigh practical needs.

What should you look for during a home tour?

Notice layout, natural light, storage, noise, accessibility, and visible signs of maintenance. Ask about the age of major systems and available records. Write down concerns and revisit at another time if helpful. A tour is an observation opportunity; it does not replace a professional inspection.

What are HOA fees?

Dues charged by a homeowners association for shared responsibilities or services. Coverage varies: ask for the budget, governing documents, reserve information, rules, and any assessments. Review both ongoing dues and restrictions that affect how you would use the property.

How do you compare different properties?

Use the same checklist for every home: location, space, condition, price, estimated ongoing costs, and likely repairs. Separate confirmed facts from unanswered questions. Ask your agent about comparable sales and property information, then weigh each home against your own priorities.

Further reading: CFPB: buying a house (opens in a new tab)

04 / MAKING AN OFFER

Turn interest into a thoughtful offer.

An offer involves more than price. Understand the commitments before you sign.

What is a purchase offer?

A written proposal setting out price, financing, deposits, timing, contingencies, and other terms. A seller may accept, reject, or counter it. Review every provision with your agent and seek legal guidance when needed; do not assume a verbal discussion settles the agreement.

What is earnest money?

A deposit associated with the purchase agreement, commonly held by an escrow holder. Its amount, due date, and treatment depend on the contract. A refund is not automatic if the purchase falls through. Understand the relevant terms before committing or transferring funds.

What are contingencies?

Contract conditions addressing matters such as financing, appraisal, or investigations. They define rights and procedures, including deadlines. Discuss what each condition protects and what removing it means. Whether you can cancel or recover a deposit depends on the actual agreement and circumstances.

What happens after an offer is accepted?

The agreed terms guide the next steps. Organize deadlines, arrange investigations, provide requested lender documents, and review disclosures and title information. Stay in touch with your agent, lender, and escrow team; acceptance starts the transaction work rather than guaranteeing that it will close.

Further reading: CFPB: closing and contract terms (opens in a new tab)

05 / INSPECTIONS & DUE DILIGENCE

Look beyond first impressions.

Use the investigation period to ask questions and understand the property before moving forward.

What is a home inspection?

An inspector evaluates accessible parts of the home and reports observed condition and concerns. The report may recommend specialist evaluations. Ask about the inspection scope and limitations, attend if possible, and review findings promptly. An inspection is not a guarantee against future problems.

What is an appraisal?

An opinion of property value, often obtained for a lender as part of financing. It serves a different purpose from a condition inspection. If the value differs from the agreed price, discuss the loan implications and contractual options with your lender and agent.

Why are property disclosures important?

They provide information about known conditions and other property matters. Read them alongside inspection reports and available records; ask about unclear or missing information. Required disclosures and exemptions vary. A disclosure does not replace your own investigation or an inspector’s evaluation.

What happens if an issue is discovered?

First understand its significance, possible specialist review, and potential cost. Then discuss available options and deadlines with your agent. Depending on the agreement, negotiations or cancellation may be possible, but a seller is not automatically required to fix every finding.

Further reading: CFPB: scheduling an inspection (opens in a new tab) · California buyer information

06 / CLOSING & BEYOND

From paperwork to your next chapter.

Keep communication clear through closing and plan the practical details of your move.

What is escrow?

In a purchase, escrow generally describes a neutral third party holding funds and documents and carrying out agreed instructions. This differs from a mortgage escrow account used to pay items such as taxes and insurance. Ask your team which meaning applies to a document or payment.

What happens during the closing process?

The team works to satisfy remaining conditions, finalize documents and funds, and complete the transfer. Confirm your signing arrangements, final walkthrough, and possession timing. Verify payment instructions through a known, independently confirmed phone number before sending money; do not rely on an unexpected email.

What documents might buyers encounter?

You may see purchase agreements, disclosures, inspection reports, title information, escrow instructions, and loan documents. For many mortgages, the Loan Estimate and Closing Disclosure describe costs and terms. Compare them, ask about changes, and obtain explanations before signing anything you do not understand.

What happens after receiving the keys?

Save your signed records, confirm utilities and insurance arrangements, and make a maintenance plan. Locate shutoffs and review appliance instructions. Understand who services your mortgage and when payments begin. Keep a list of remaining move-in tasks and questions for the appropriate professional.

Further reading: CFPB: Closing Disclosure explained (opens in a new tab)

Helpful resources and tools.

Download checklists and explore additional information to guide you along the way.

Common homebuying terms
Appraisal
An opinion of a property’s value, often used by a lender.
Closing costs
Transaction and loan expenses separate from your down payment.
Contingency
A contract condition with specific terms, procedures, and deadlines.
Down payment
Your contribution to the purchase price that is not financed by the mortgage.
Earnest money
A purchase deposit handled according to your agreement.
Equity
The difference between a property’s value and the debt secured against it.
Escrow
A third-party arrangement for holding funds and documents; also a term for certain mortgage accounts.
HOA
A homeowners association managing shared responsibilities under its governing documents.
Interest
The charge for borrowing money.
Loan Estimate
A lender’s form describing estimated mortgage terms, payments, and costs.
Principal
The borrowed amount still owed.
Title
Legal ownership rights in a property.

Trusted information sources.

For more detailed information, you may also find these official and professional resources helpful.

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HAVE QUESTIONS?

Every home journey starts somewhere.

If you’re exploring your options, I’d be happy to help you understand the next steps and connect you with trusted professionals when needed.

Keep exploring.

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