Buying your first home can feel like a lot of moving pieces at once. The good news: the process follows a predictable order. When you know what's coming next, it gets a lot less stressful.
Here's how a typical purchase works for first-time buyers in Los Angeles and the San Fernando Valley, from first conversation to keys.
Step 1: Get clear on your budget
Before you look at listings, figure out a monthly payment you're comfortable with. That payment includes more than principal and interest:
- Property taxes — in California, based largely on your purchase price, plus any local assessments
- Homeowners insurance — worth getting quotes early, since availability and cost vary by area
- HOA dues — common with condos and townhomes
- Mortgage insurance — depending on your loan type and down payment
Our How Much House Can I Afford? guide walks through this in more detail, and you can try the calculator on our homepage.
Step 2: Gather your documents
Having these ready speeds everything up:
- Recent pay stubs and the last two years of W-2s (or tax returns if you're self-employed)
- Recent bank and investment statements
- Photo ID
- Details on any gift funds, if family is helping with the down payment
Self-employed or have non-traditional income? Our Non-QM guide covers other ways to document income.
Step 3: Get pre-approved
A pre-approval means a lender has reviewed your credit, income, and assets and issued a letter showing what you may qualify for. In a competitive market, sellers often expect one with your offer. It also tells you what your price range realistically looks like before you fall in love with a house.
Pre-approval isn't final loan approval — the home still needs to be appraised, and your finances need to stay steady until closing.
Step 4: Look into assistance programs
If the down payment is your biggest hurdle, check whether you might qualify for down payment assistance. Some programs have limited funding windows, so it's worth asking early. See our guide to California first-time homebuyer programs.
Step 5: Choose a real estate agent and start touring
A good buyer's agent knows the neighborhoods, pricing, and how to write a strong offer. Share your pre-approval and your must-haves with them. Keep in mind that the San Fernando Valley covers a lot of ground — commute, schools, and property type can vary a lot from one neighborhood to the next.
Step 6: Make an offer and open escrow
Once your offer is accepted, escrow opens. Escrow is a neutral third party that holds funds and documents until everything is complete. You'll typically deposit your earnest money (good-faith deposit) at this point. Your purchase contract will spell out deadlines for inspections, the appraisal, and loan approval — your agent will help you track them.
Step 7: Inspections, appraisal, and underwriting
This is the busiest stretch:
- Inspection — a home inspector checks the property's condition. You may negotiate repairs or credits based on what's found.
- Appraisal — the lender orders an independent appraisal to confirm the home's value.
- Underwriting — the lender verifies your documents and may ask for updated statements or explanations. Respond quickly to keep things moving.
Important: avoid opening new credit, making large purchases, or changing jobs during this time without talking to your loan officer first. Changes can affect your approval.
Step 8: Final approval, Closing Disclosure, and closing
Once underwriting clears all conditions, you'll receive your Closing Disclosure, which shows your final loan terms and costs. Review it carefully and compare it with your Loan Estimate. Then you'll sign your loan documents, your funds go to escrow, and the sale records with the county. That's when you get your keys.
Curious what you'll pay at closing? See Closing Costs Explained.
How long does it all take?
Timelines vary based on the contract, the loan program, and how quickly documents come in. Being organized, getting pre-approved early, and staying responsive during underwriting make the biggest difference.
Frequently asked questions
How much do I need for a down payment on my first home?
It depends on the loan program. Some programs allow low down payments for qualified buyers, VA loans may offer no-down-payment options for eligible borrowers, and assistance programs may help. You'll also need funds for closing costs and reserves in many cases.
Should I get pre-approved before talking to a real estate agent?
It helps to do both early. A pre-approval clarifies your price range, which makes your time with an agent more productive, and many agents will ask for one before writing offers.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is usually a quick estimate based on information you provide. Pre-approval involves reviewing your credit and documents, so it carries more weight with sellers. Neither is a final loan approval.
Can I buy a home if I'm self-employed?
Yes. Self-employed buyers often qualify using tax returns, and Non-QM programs may allow other forms of income documentation, like bank statements. Eligibility depends on the full application.