San Fernando Valley Home Buyer's Guide

The Home Buying Process: 6 Steps

Every purchase looks a little different, but almost all of them move through the same six stages. Here's the roadmap.

1. 1

   Find an Agent

   Interview a few experienced local agents. A good one acts as your advocate throughout the whole process, so look for someone who knows the housing market and the specific neighborhoods you're considering, not just real estate in general.

2. 2

   Get Preapproved

   Decide which type of loan fits your situation and get preapproved for a mortgage before you start touring homes. A preapproval letter tells sellers and their agents you're a serious buyer who can actually get financing, which matters a lot once you're competing for a home.

3. 3

   Find Your Home

   Search for homes within your approved budget, in neighborhoods that fit your lifestyle and give you access to the amenities that matter to you, whether that's schools, commute times, or walkability.

4. 4

   Make an Offer

   Decide how much to offer based on comparable sales and the home's condition. Your agent presents the offer to the seller's agent, and the seller either accepts it or comes back with a counteroffer.

5. 5

   Get a Home Inspection & Appraisal

   A licensed inspector checks the property for issues that weren't in the seller's disclosures. Separately, your lender orders an appraisal to confirm the home's value matches the loan amount.

6. 6

   Close

   Three business days before closing, your lender is required to give you the Closing Disclosure. Review it, sign the final paperwork, pay your closing costs, and the home is yours.

What a Buyer's Agent Actually Does For You

A good buyer's agent is doing a lot more than unlocking doors. Over the course of a transaction, your agent should be helping you understand the local housing market, figuring out what you actually want and need in a home, and scheduling showings around your life. They should walk you through how to evaluate a home's price and value, explain the buying process and the closing disclosure in plain terms, and recommend inspectors they genuinely trust rather than whoever's convenient.

Behind the scenes, your agent is coordinating with lenders, inspectors, and title companies, negotiating with the seller's agent on your behalf, and double-checking every deadline and piece of paperwork so nothing slips. That coordination work is invisible when it's done well, but it's often what determines whether a deal closes smoothly or falls apart over something small.

Financing and Preapproval

It's worth talking to a lender and getting preapproved before you start seriously house hunting. During preapproval, a lender looks at your income, assets, and credit score to figure out what loans you qualify for, how much you can borrow, and roughly what interest rate you'll get.

Prequalified vs. Preapproved

These two terms get used interchangeably, but they're not the same thing. With prequalification, a lender pulls your credit and asks about your income and assets to estimate what you can afford. It's a quick, informal snapshot.

Preapproval is the more serious step. You'll speak with a loan officer and provide actual documentation to verify your income and assets, and the lender gives you a conditional commitment in writing for a specific loan amount. Most agents want to see a preapproval letter, not just a prequalification, before they'll start showing you homes, because it confirms you're not going to fall in love with something outside your real budget.

Questions to Ask When Choosing a Mortgage Lender

• Which type of mortgage is best for me?
• How much down payment will I need?
• What interest rate can you offer, and can I lock it in?
• How long will it take to close the loan?
• Are there any charges for paying off this loan early?
• What other costs will I pay at closing?
• Do I qualify for any special first-time buyer or assistance programs?

Documents You'll Need for Preapproval

• Government-issued ID
• Two years of tax returns
• Recent pay stubs and W-2s
• Documentation of any other income sources
• Recent bank statements
• Credit history and score
• Proof of income and, if you're renting, your rental history

How Much Should Your Down Payment Be?

There's no single right answer here. It depends on your savings, your goals, and the type of loan you qualify for. Some loan programs allow down payments well below 20%, while a larger down payment can lower your monthly payment and help you avoid private mortgage insurance. When you're ready, this is a conversation worth having early, so it doesn't limit your options later.

Define Your Home Search

Before you start touring homes, take a few minutes to get honest with yourself about what actually matters. Think through square footage, lot size, natural light, and any accessibility needs. Consider what property type fits you best, whether that's a condo, a townhouse, or a single-family home, and which neighborhoods you're actually open to.

It also helps to think about whether you want something move-in ready or you're open to renovating, and how long you realistically plan to stay in this home. That last question changes a lot, including how much weight to put on resale value versus exactly what you want today.

House Hunting Tips

Knowing your needs and wants ahead of time helps you understand what you're willing to compromise on, and it saves you and your agent time when you're scrolling through listings.

Keep notes as you go. Write down questions to ask, and what you liked or didn't like about each house. Take photos of homes and any potential problem spots so you can compare them later, because after the fifth or sixth showing, homes start to blend together.

Stay flexible. A home that's "almost perfect" on paper can surprise you in person, and the reverse is also true. And work with an agent you trust. A good one will tell you when a home isn't right for you, not just show you more listings.

Making a Competitive Offer

Making an offer is about more than the price. Timing and terms matter just as much. The price is usually the first thing buyers think to negotiate, but it's rarely the only lever available. You can also ask the seller to cover part of your closing costs, request repairs based on the inspection, or ask for certain appliances or furniture to be included. Some buyers negotiate the move-in date, ask for a home warranty, or request credits for updates they plan to make after closing.

Before you land on a number, it's worth weighing how long the home has been on the market, what comparable homes nearby have actually sold for, whether the home needs repairs or renovation, and whether you can comfortably live with the monthly payment. Every negotiation is different, and having a clear strategy going in makes a real difference.

Multiple Offer Situations

You may find a home that checks every box, only to discover several other buyers want it too. If that happens, a few strategies can help your offer stand out:

• Present an offer with as few contingencies as you're comfortable with
• Offer a larger down payment and earnest money deposit
• Consider waiving the appraisal contingency, if your finances allow it
• Present an all-cash offer, if that's an option for you
• Include a purchase price escalation addendum
• Be flexible on closing date and move-in timing
• Write a personal letter to the seller

In any market, the most desirable homes get the most attention. Being prepared and acting quickly puts you in the best position when it counts.

Home Inspection and Appraisal

Buying a home is a major investment, and inspections are how you protect it. A thorough inspection uncovers potential issues before you're locked in, giving you the chance to negotiate repairs or price adjustments, and the peace of mind that comes with knowing what you're actually buying.

As the buyer, you choose and pay for the home inspector. If the inspection turns up problems that weren't in the seller's disclosures, you may be able to negotiate. A general home inspection typically runs $400 to $1,000 depending on the home's size, age, and location, and covers the roof, floors, walls, and ceilings, plumbing and electrical systems, heating and air conditioning, major appliances, and windows and doors.

Recommended Inspections

• General home inspection: a full review of the foundation, roof, plumbing, electrical, HVAC, and overall condition
• Termite and pest inspection: checks for infestation or damage that isn't always visible to an untrained eye
• Roof inspection: evaluates leaks, damaged shingles, and how much life the roof has left

Appraisal

Your lender selects a licensed appraiser to evaluate the property, and you cover the cost. The appraisal confirms the home's fair market value matches the loan amount, which protects both you and the lender. If the appraisal comes in lower than the agreed price, it can give you leverage to renegotiate or, in some cases, walk away.

Final Steps Before Closing

Insurance

Most lenders require homeowners insurance. An insurance agent can help you figure out the minimum coverage you'll need for your home's value and your lender's requirements. Depending on where the home is located, you may also need flood or fire insurance.

Closing Disclosure

You should receive your Closing Disclosure from your lender at least three days before closing. Check that the loan terms and costs match what you agreed to in your loan estimate, and that the buyer and seller costs line up with your purchase offer. If anything looks off, call your lender right away rather than waiting.

Final Walkthrough

Schedule a final walkthrough with your agent to confirm everything is as expected. If you find problems, such as repairs that weren't completed or items that were supposed to convey with the home, your agent can help you work out how the seller will fix it or credit you for it before you close.

Closing Day

Congratulations, you made it. In California, closing usually plays out over a couple of days. On or before your closing date, you'll review and sign your loan documents, often with a notary or escrow officer. After signing, escrow sends everything to the lender for final review and funding approval, and once the loan funds, escrow records the deed and transfers ownership.

The official closing date is usually the day after funding, which is when title transfers to you and you get your keys, often by the end of the day. Signing itself might only take about an hour, but the full process involves escrow, your lender, and the title company all coordinating behind the scenes to make everything official.

What to Bring to Closing

• Cashier's check or wire transfer for your closing funds
• Proof of homeowners insurance
• Government-issued ID, such as a driver's license, state ID, or passport
• Your Closing Disclosure
• Any additional documentation your lender has requested

Frequently Asked Questions

Real Estate Terms Glossary