How to Buy a Home in California

Before you start looking at homes, take an honest look at your finances. Check your credit score — most California mortgage programs require 580+ (FHA) to 620+ (conventional) to 700+ (jumbo). Review your savings for down payment and closing costs. Calculate your debt-to-income ratio using our DTI calculator.

In California, where median home prices exceed $750,000, you'll typically need $26,000–$150,000+ for a down payment depending on the program. Factor in closing costs of 2–5% of the purchase price, plus reserves of 2–6 months of payments for certain loan types.

Pre-approval is essential in California's competitive markets. A pre-approval letter from Save Financial shows sellers you're a serious, qualified buyer. We review your credit, income, and assets to issue a conditional commitment for a specific loan amount.

Save Financial completes most pre-approvals within 24 hours. We evaluate all 35 of our loan programs to maximize your buying power — the right program can mean $50,000–$200,000 more in purchasing capacity. Apply for pre-approval here or call (888) 703-1840.

The loan program you choose affects your down payment, monthly payment, and total cost. Key options for California buyers include conventional loans (3–20% down, best rates for 700+ credit), FHA loans (3.5% down, flexible credit), VA loans (zero down for veterans), jumbo loans (above $1,209,750 conforming limit), and bank statement loans (for self-employed).

Save Financial runs side-by-side comparisons so you see the exact dollar difference. Use our comparison pages for detailed breakdowns, or let us do the math for your specific scenario.

A good buyer's agent who knows California markets is invaluable. They'll help you find homes, negotiate offers, navigate inspections, and manage the escrow process. The seller typically pays the buyer's agent commission, so representation costs you nothing.

Look for agents with experience in your target area and price range. Ask about their track record with competitive offers — in California's hot markets, offer strategy matters enormously. Save Financial works with trusted agents throughout the state and can provide referrals.

With your pre-approval in hand, you know exactly what you can afford. Focus your search within your budget, factoring in property taxes (1.1–1.4% annually in California), homeowners insurance, and HOA fees if applicable.

In competitive California markets, be ready to act fast. Homes in desirable neighborhoods often receive multiple offers within days. Attend open houses, set up alerts, and be prepared to submit an offer quickly when the right property appears.

Your offer includes the purchase price, earnest money deposit (1–3% in California), contingencies (inspection, appraisal, financing), proposed closing date, and any special terms.

In a competitive market, strategies that strengthen your offer include offering above asking price (if justified), increasing earnest money, shortening contingency periods, accommodating the seller's preferred closing date, and including a pre-approval letter from a reputable lender. Your agent will advise on the right strategy for each situation.

Once your offer is accepted, schedule inspections promptly — you typically have 10–17 days in California. A general home inspection ($400–$600) covers the major systems. Consider additional inspections for pest/termite, roof, sewer/plumbing, chimney, and foundation depending on the property's age and condition.

If inspections reveal issues, you can negotiate repairs or credits with the seller, accept the property as-is, or walk away (if within the contingency period). Your agent handles these negotiations.

The lender orders an appraisal to verify the property's value. If the appraisal matches or exceeds the purchase price, you're in good shape. If it comes in low, your options are renegotiating the price with the seller, paying the difference in cash, requesting a reconsideration of value, or walking away under the appraisal contingency.

Low appraisals are more common in rapidly appreciating California markets. Save Financial helps clients navigate appraisal challenges with strategies specific to each situation.

During underwriting, the lender verifies all your documentation. Respond to any requests for additional documents within 24 hours — this is the most common cause of delays. Don't change jobs, open new credit accounts, or make large purchases during this period.

Once the underwriter approves your file with all conditions met, you'll receive "clear to close" status and the final Closing Disclosure document at least 3 business days before signing.

In California, you sign closing documents at the escrow company or with a mobile notary. After the lender reviews and funds the loan, the deed is recorded with the county recorder's office. Once recording is confirmed, you receive the keys to your new home.

Total timeline from offer to keys is typically 30–45 days for conventional and FHA loans, and can be faster for certain programs. Save Financial tracks every milestone and communicates proactively throughout.