Buyer's Frequently Asked

---

As a first-time home buyer, getting pre-approved for a mortgage is a crucial step that determines how much a lender is willing to loan you, which helps you understand your budget and strengthens your offer when you find a home you love. Click here to message me for a free pre-approval. My team and I will reach out to you!

Setting a budget involves calculating your total monthly housing expenses, including the mortgage payment, property taxes, insurance, and maintenance costs; for example, if you're pre-approved for a $500,000 loan, you might set a budget to ensure your monthly housing costs do not exceed 30% of your income.

 Once you have your budget and pre-approval, start searching for a reliable real estate agent who knows the local market well and can guide you through the process, helping you find homes that meet your criteria and negotiating the best deal on your behalf. 

Prospective buyers frequently search for financial assistance options such as state or federal programs, grants, and incentives that can help them afford their first home. Programs like the California Housing Finance Agency (CalHFA) loans and the Mortgage Credit Certificate (MCC) program are common points of interest. 

In California, the minimum down payment for first-time home buyers is typically 3% to 3.5% of the home's purchase price for conventional loans and FHA loans, respectively. Strategies for saving include setting a clear budget, cutting unnecessary expenses, automating savings transfers, and exploring down payment assistance programs like those offered by CalHFA.

Understanding the real estate market is crucial, so many buyers search for information on average home prices in different cities and neighborhoods across California to find areas that fit their budget. If you're curious to know the average home price in a city that you're interested in, click here to message me! I'll send you everything you need to know about the area. 

Closing costs are the fees and expenses associated with finalizing a real estate transaction.  Typical closing costs for buying a home in California generally range from 2% to 5% of the home's purchase price. Here are some common closing costs and their average amounts:

1. Appraisal Fee: $300 - $600
2. Home Inspection Fee: $300 - $500
3. Title Insurance: $500 - $1,500
4. Loan Origination Fees: 0.5% - 1% of the loan amount
5. Escrow Fees: $500 - $2,000
6. Recording Fees: $100 - $250
7. Prepaid Costs (e.g., property taxes, homeowners insurance): Varies, typically $1,000 - $3,000

These costs can vary based on the price of the home, the location, and the specific terms of the sale.  

Understanding and budgeting for closing costs are crucial for buyers to avoid unexpected financial burdens and to complete the home-buying process smoothly and successfully.