From pre-approval to closing, every step explained.
Before you look at a single listing, understand your financial picture. Review your credit score, calculate your available down payment and reserves, and get a mortgage pre-approval (not just a pre-qualification) from a lender. A pre-approval letter tells you exactly how much you can borrow, strengthens your offers dramatically, and prevents the heartbreak of falling in love with a home you cannot buy. Our sister company Signature Home Mortgage can assist, or read our mortgage pre-approval guide.
Make a clear list of must-haves (the things you will not compromise on) and nice-to-haves (the things you would love but can live without). Include location, commute, school districts, size, bedroom count, garage, outdoor space, and lifestyle considerations. Being clear about your priorities before you start touring saves time and prevents decision fatigue. Exploring our areas we serve is a good way to understand what different neighborhoods offer.
A buyer's agent represents your interests, not the seller's. They provide access to every active listing (including some not yet on public sites), set up automated alerts for new properties matching your criteria, arrange tours, share their knowledge of specific streets and neighborhoods, and guide you through every step of the process. Importantly, in California the seller typically pays the buyer's agent commission, so professional representation costs you nothing.
We set you up with real-time listing alerts and tour properties with you, sharing our view on each home's value relative to recent comparable sales. Before you make an offer on any home, we pull comps and give you a clear picture of what the market says it is worth. This prevents overpaying and helps you make confident, informed offers.
A strong offer in today's market addresses price, contingencies, earnest money, closing timeline, and any seller-specific motivations (such as a rent-back if the seller needs time to move). We structure your offer to be competitive without being reckless, advise on whether to include inspection, appraisal, and loan contingencies, and negotiate directly with the listing agent on your behalf. In multiple-offer situations, strategy matters as much as price.
Once your offer is accepted, you deposit earnest money (typically 1 to 3 percent of the purchase price) and escrow opens. You have a window, usually 10 to 17 days, to complete your inspections. We coordinate with your inspector, review the reports with you, and help you decide whether to proceed, request repairs, or negotiate a credit. The seller is also required to provide extensive California disclosure documents during this period, which we review with you carefully.
Your lender orders an appraisal to confirm the home is worth at least the purchase price. If it comes in low, you have options: negotiate a price reduction, make up the difference in cash, or walk away if you have an appraisal contingency. Simultaneously, your lender is collecting final documentation to issue a clear to close. We stay in contact with your lender and escrow officer to keep everything on schedule.
A few days before closing, you conduct a final walkthrough to confirm the home is in the agreed-upon condition and any negotiated repairs are complete. Then you sign final loan documents, wire your down payment and closing costs, and once the loan funds and title records, you get the keys. Budget for closing costs of roughly 2 to 3 percent of the purchase price. Explore our buyer services or contact us to start your search.
The minimum depends on your loan type. Conventional loans require as little as 3 percent for first-time buyers (5 percent for repeat buyers), FHA loans require 3.5 percent, and VA loans (for eligible veterans) require zero down. However, putting down 20 percent eliminates private mortgage insurance (PMI) and can strengthen your offer in competitive situations. Most buyers in Greater Los Angeles put down 10 to 20 percent, though this varies by price point and loan type.
Earnest money is a good-faith deposit made when your offer is accepted, held in escrow until closing or returned if you cancel within your contingency periods. In California, there is no legally mandated amount, but 1 to 3 percent of the purchase price is typical. In competitive markets, a higher earnest money deposit signals seriousness and can strengthen an offer. If you cancel within your contingency periods, you generally get it back; if you cancel after removing contingencies, you may forfeit it.
Standard escrow in California is 30 to 45 days for financed purchases. Cash purchases can close in as little as 7 to 14 days. Escrow length is negotiable and can be a meaningful part of offer strategy: sellers who need time to relocate may prefer a longer escrow, while those who are ready to move may prefer a fast close. We advise on the optimal timeline for each offer.
You have several options. You can negotiate with the seller to reduce the price to the appraised value. You can pay the difference between the appraised value and the purchase price in cash (an appraisal gap). You can challenge the appraisal with additional comparables through your lender. Or, if you have an appraisal contingency in place, you can cancel and recover your earnest money. We advise on the best approach based on how much you want the home and current market conditions.
Yes. A home inspection examines systems and components that are not visible to the naked eye, including the roof, foundation, electrical panel, plumbing, HVAC, and attic insulation. In California, sellers are required to disclose known defects, but they may not know about all issues. A thorough inspection protects you from discovering expensive problems after you close. Even in competitive markets where some buyers waive inspections, we advise getting one and using the information strategically.