Know every step before you take it

Less than most people assume. Conventional loans start near 3% down and FHA at 3.5%, and VA loans at zero for those who qualify — 20% is the threshold that removes mortgage insurance, not the threshold that gets you approved. Which program fits depends on your situation and how long you plan to hold the property, and that is a conversation to have with a lender before you start touring.

Closing costs in California generally run about 2–5% of the purchase price, covering lender fees, escrow and title, recording, and prepaid property taxes and insurance. Budget separately for inspections, which you pay for up front whether or not you end up closing. Your lender is required to itemize all of it on a Loan Estimate within three business days of your application, so you are never guessing at the number.

Yes, and earlier than feels necessary. A pre-approval is what tells you which towns your budget actually reaches, and when you write an offer the listing agent will read it before they read your price. Lender introductions happen early for exactly this reason — pre-approval should never be the thing holding up an offer.

Once an offer is accepted, escrow usually runs 21 to 45 days, with 30 being the common case. The search before that varies much more, driven by inventory in your price range and how specific your requirements are. The financing conversation should start months before you expect to write an offer, not weeks.

Contingencies are the contractual exit points in your offer — the main ones cover your loan, the appraisal, and your investigation of the property. Under the standard California purchase agreement they run 17 days by default, and every one you shorten or waive makes your offer more competitive and your deposit less protected. Which to keep is a judgment about the specific property and what you can absorb if something goes wrong, so we decide it deliberately rather than by default.

A neutral escrow holder takes your deposit and holds the file while the real work happens — inspections, the appraisal, loan underwriting, the title search, and your review of the seller disclosures. Each of those carries a deadline, and missing one has contractual consequences rather than just inconvenience. Keeping that calendar visible is my job, so the deadlines arrive as plans instead of surprises.

Under the practice changes that took effect in August 2024, buyer representation is set out in a written agreement signed before we tour homes, and that agreement states the compensation. It may be covered by the seller or the listing brokerage, paid by you directly, or some combination — it is negotiable, and it gets addressed in the offer. You will know the number and who is paying it before you are committed to anything.

Attend it if you possibly can. A report tells you a condition exists; standing in the crawlspace with the inspector tells you how much it actually matters. Focus your attention on the expensive systems — foundation, roof, drainage, electrical, sewer lateral, and any sign of water intrusion — because cosmetic items are cheap and negotiable, while those are the ones that should drive your decision.