Your Home Buyer
Resource Center

In California, most lenders recommend saving at least 20% of the home’s price to avoid private mortgage insurance (PMI). However, many first-time homebuyers put down much less—sometimes as low as 3% to 5%, depending on the loan program. Keep in mind that you’ll also need to budget for closing costs, moving expenses, and an emergency cushion. Need assistance with your downpayment?

See Assistance Programs >

Closing costs usually cover the fees and services needed to finalize your home purchase. These may include lender fees, title and escrow charges, appraisal costs, and prepaid expenses like property taxes or homeowners insurance. In California, closing costs typically range from 2% to 5% of the home’s purchase price. Your Mortgage Loan Consultant will provide a detailed breakdown up front so you know exactly what to expect before signing.

From start to finish, the homebuying process in California typically takes about 30 to 45 days once your offer is accepted. This timeframe allows for the loan application, appraisal, inspection, and underwriting to be completed. The timeline can be shorter or longer depending on how quickly documents are provided and whether any issues arise.

Your monthly mortgage payment is usually made up of four parts, often called PITI: Principal, Interest, Taxes, and Insurance. Principal and interest go toward repaying your loan, while property taxes and homeowners insurance are collected and held in an escrow account. If your down payment is less than 20%, you may also pay private mortgage insurance (PMI). Your Mortgage Loan Consultant can show you a full breakdown so you know exactly where your money is going each month.

How much home you can afford depends on your income, debts, credit score, and down payment. A good rule of thumb is that your monthly housing costs (mortgage, taxes, and insurance) should be around 28–30% of your gross monthly income. Lenders will also look at your debt-to-income ratio to ensure you’re not overextended. Meeting with a Mortgage Loan Consultant can help you get prequalified and determine a realistic price range based on your personal finances.