First-Time Buyer Guide

1. Set your priorities and budget.

Start with the way you actually live: preferred locations, commute, space, accessibility, and the features you need. Separate must-haves from things you could change later. A home can be attractive in photographs and still be a poor fit for your everyday routine.

Look at your savings, income, debts, and regular spending. Plan for more than a down payment: buying can involve loan charges, inspections, title and escrow costs, moving, and initial repairs. Ongoing costs can include taxes, insurance, maintenance, utilities, and homeowners association dues. Leave room for unexpected expenses rather than committing every available dollar.

A lender’s maximum loan amount is not the same as a comfortable personal budget. Decide what housing payment fits alongside your other commitments and ask which costs may change over time.

More detail: CFPB: Preparing to shop (opens in a new tab) ↗.

2. Talk with lenders before you search.

Ask what documents are needed and compare loan options with more than one lender. Discuss the down payment, interest rate, fees, mortgage insurance, and total monthly payment. If you are exploring assistance programs, ask a lender to confirm current eligibility and repayment terms.

A pre-approval letter can help frame your search, but it does not guarantee a loan. Lenders use “pre-qualification” and “pre-approval” differently. Ask what information was checked, what conditions remain, and when the letter expires. Final approval may depend on the property and updated financial information.

When you have a specific property and request a loan, compare written Loan Estimates for similar loan options. Check the rate, monthly payment, closing costs, cash needed to close, and whether the rate is locked. Ask about anything that differs from your earlier discussion.

More detail: CFPB: Loan choices (opens in a new tab) ↗ · Pre-approval (opens in a new tab) ↗ · Loan Estimates (opens in a new tab) ↗.

3. Compare homes and agree on representation.

Discuss your search area, priorities, timing, and price range with your agent. Ask how you will communicate and how showings will work. Read any representation agreement before signing; ask about services, compensation, duration, and ending the agreement.

During a visit, look beyond the decor. Notice layout, storage, visible maintenance, and how the location works for you. Keep brief notes using the same priorities for each home. Ask about available records and flag concerns for professional investigation; a tour does not replace an inspection.

For a home with an association, solar equipment, or special assessments, ask what documents, ongoing payments, and responsibilities need review. Confirm property-specific costs rather than relying only on an advertisement or a prior owner’s bills.

4. Understand the offer before signing.

An offer includes more than price. Review the deposit, financing, proposed closing date, items included in the sale, and any conditions called contingencies. Ask your agent to explain each deadline and what happens if a condition is not met.

Discuss comparable sales and your budget when deciding what to offer. The seller may accept, decline, or propose different terms. Read any revised agreement carefully. An accepted offer can create binding obligations; the deposit is not automatically refundable. Get professional advice before waiving protections or deciding to cancel.

More detail: California DRE: Homebuyer information (opens in a new tab) ↗.

5. Review the property and complete financing.

Arrange inspections early enough to work within your contract deadlines. An inspection evaluates condition; a lender’s appraisal evaluates value. They serve different purposes. Read the inspection findings and ask whether a specialist should investigate a concern. A report cannot guarantee that every problem will be found.

Review seller disclosures, title information, and applicable association documents. Ask questions about unfamiliar items instead of treating the paperwork as a formality. Your agent can help coordinate the process; legal interpretation and technical condition questions may need an attorney or specialist.

Stay in contact with your lender about document requests and remaining approval conditions. Ask before making major changes to credit, employment, or the funds intended for the purchase. Also obtain an insurance quote early so availability and cost are part of your decision.

More detail: CFPB: Home inspections (opens in a new tab) ↗ · Preparing to close (opens in a new tab) ↗.

6. Check the final details and close.

Before closing, review the final loan terms, closing expenses, credits, and cash needed. For most mortgages, the lender provides a Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate and resolve questions with the lender.

Arrange the final walkthrough with your agent to check the home against the agreement. Confirm signing, funding, recording, and possession arrangements with the escrow team; those steps do not always happen at the same moment.

Verify payment instructions directly with your escrow or closing professional using a trusted phone number, especially if an email says the instructions changed. Once the transaction is complete, keep your closing documents and confirm the first mortgage payment and ongoing insurance arrangements.

More detail: CFPB: Closing Disclosure (opens in a new tab) ↗ · Homebuying resources and closing-scam guidance (opens in a new tab) ↗.