Buying your first home in Los Angeles is one of the most significant financial decisions you'll ever make — and one of the most confusing. The process involves more steps, more parties, and more money than most first-time buyers anticipate. Here's everything you need to know, in the order you need to know it.
The Financial Foundation
Before you tour a single home, get three things in order: your credit, your down payment plan, and your pre-approval. The "20% down" rule is a myth. Here's the reality:
- Conventional loans: As low as 3% down
- FHA loans: 3.5% down with a 580+ credit score
- VA loans: 0% down for eligible veterans and service members
- CalHFA / Dream for All: California programs specifically for first-time buyers — many clients qualify who don't expect to
The Step-by-Step Process
1. Get pre-approved (not pre-qualified). Pre-qualification means almost nothing. Pre-approval involves a full application, credit pull, and document review — and produces a letter that sellers actually respect. Do this before you see a single home.
2. Define your criteria honestly. Before you start looking, write down your non-negotiables versus your nice-to-haves. The Valley offers dramatically different neighborhoods at dramatically different price points.
3. Work with a dedicated buyer's agent. In California, the seller typically pays the buyer's agent commission — meaning you get professional representation at no direct cost. Your agent legally works exclusively in your interest. Never use the listing agent to represent you.
4. Make an offer structured correctly. A purchase offer is more than a price. It includes contingencies, earnest money, close date, and seller concession requests. How your offer is structured can be as important as the price itself.
5. Open escrow and complete your due diligence. Once your offer is accepted, you'll open escrow — we recommend Mickie Ardi Escrow, our in-house service. Then conduct inspections, review disclosures, and lock your rate. Do not waive your inspections.
6. Final walk-through and close. Sign closing documents, wire your closing funds, and wait for the county to record the deed. When recording is confirmed, you get your keys.
Closing Costs: The Number Most Buyers Underestimate
Beyond your down payment, expect 2–3% of the purchase price in closing costs. On a $700,000 purchase, that's $14,000–$21,000 on top of your down payment. Factor this in from the very beginning.
Five Mistakes to Avoid
- Making large purchases or changing jobs between offer acceptance and close — lenders re-verify before funding
- Falling in love with the staging — you're buying the structure and location, not the furniture
- Skipping the inspection to be competitive — understand exactly what you're taking on first
- Ignoring future resale value — even "forever homes" get sold eventually
- Working with an agent who doesn't know your specific submarket
Talk to Our Team
No pressure. No obligation. Honest guidance from people who know Southern California real estate.
Contact Mickie Ardi Realty