How to Buy a House in California: Step-by-Step Guide
Follow these 10 steps to navigate the home buying process in California. California does not require an attorney at closing.
Check Your Credit Score & Finances
Review your credit report, calculate your debt-to-income ratio, and determine how much you can afford. Most lenders want a credit score of 620+ for conventional loans, or 580+ for FHA loans.
Get Pre-Approved for a Mortgage
Contact multiple lenders to compare rates and get a pre-approval letter. This shows sellers you're a serious buyer and tells you exactly how much you can borrow.
California Note: The current FHA loan limit in California is $1,149,825.
Find a Real Estate Agent
Work with a licensed California real estate agent who knows your target area. Agents are regulated by the California Department of Real Estate.
Search for Homes & Make an Offer
Browse listings in California where the average home price is $809,227. Homes typically stay on market for 35 days. When you find the right one, your agent will help you submit a competitive offer.
Get a Home Inspection
Hire a licensed home inspector to evaluate the property's condition. This typically costs $300-$500 and can save you from expensive surprises.
Secure Your Financing
Finalize your mortgage application, lock in your interest rate, and provide all required documentation to your lender. The lender will order an appraisal.
Get Homeowners Insurance
Shop for homeowners insurance in California. Your lender will require proof of insurance before closing. Compare at least 3-4 quotes.
Review Closing Disclosure
You'll receive a Closing Disclosure at least 3 business days before closing. In California, average closing costs are $17,393 (2.15% of the home price). Review every line carefully.
Close on Your New Home
At closing, you'll sign all final documents, pay your closing costs, and receive the keys. California does not require an attorney at closing, though you may choose to hire one.
Move In & File Your Homestead Exemption
Congratulations! After moving in, file for California's homestead exemption (Up to $300,000-$600,000 (varies by county median)) to reduce your property taxes.
California Legal Quick Reference
Conveyance
Grant deed
Security
Deed of trust
Foreclosure
Non-Judicial
Attorney
Optional
Seller Disclosure Requirements
California's Transfer Disclosure Statement covers structural flaws, included appliances, damage, recent deaths, additions and neighborhood noise. Additional disclosures address smoke-detector compliance, earthquake safety, flood/fire hazards and sex-offender registry information.
