Buyer Questions FAQ 

Buying a home in California — exciting, right? But let’s be real… it’s also a bit overwhelming. Whether you're a first-time buyer or just rusty on the process, the questions can pile up fast. The good news? You’re not alone — and I’ve got answers.

In this blog, we're digging into the top buyer questions that come up again and again, including:

• How much do I need to put down?

• Should I wait for interest rates to drop?

• What’s the difference between a condo, townhouse, or single-family home?

• What exactly are contingencies?

• Can I negotiate the price?

• …and more!

Let’s dive in!

1. How much do I need to put down to buy a home in California?

The amount you need to put down depends on your loan type, credit score, and financial goals. Here’s a quick breakdown:

• Conventional Loan – 20% is standard

• Income Property – 25% down

• FHA Loan – 3.5% down (great for first-time buyers)

• VA Loan – 0% down (for qualified veterans)

Keep in mind: If you put down less than 20% on a conventional loan, you’ll likely pay PMI (Private Mortgage Insurance). And while saving up a larger down payment sounds smart, in a rising market, waiting might cost you more in the long run. Bottom line? Get in when you can — you can always refinance later.

2. Should I wait for interest rates to drop?

Nope. Don’t play the waiting game.

Interest rates fluctuate constantly, and trying to time the market is like catching lightning in a bottle. Plus:

• Prices in CA keep rising, even with higher rates

• If rates drop later, you can refinance

• Lower rates = more buyers = more competition

So if you’re ready now, go for it. Waiting may mean paying more in the long run — for both the home and the interest.

3. How competitive is the market right now?

In one word: Busy.

Yes, more inventory is popping up, but it’s still a seller’s market in many SoCal neighborhoods. Competition varies by area, price point, and property type — but in general, demand is high.

The takeaway? Be ready to move fast and have your pre-approval in hand.

4. What’s the difference between a condo, townhouse, or single-family home?

Here’s the quick breakdown:

• Condo – Like an apartment you own. No yard, shared walls, HOA fees, no private garage.

• Townhouse – Multi-level unit, often has a small yard and private garage. Still has HOA.

• Single-Family Home (SFR) – Freestanding house, no shared walls. Usually no HOA, but you're responsible for all upkeep.

Which one’s best? That’s up to your lifestyle. If you want less maintenance, go with a condo or townhouse. Want space and freedom? SFR might be for you.

5. What’s the process of getting loan pre-approval?

Simple steps — just a little paperwork:

1. Pick a lender or mortgage broker

2. Complete an online loan app

3. Submit:

   • Last 3 months of bank statements

   • 2 years of tax returns

   • Most recent pay stubs

Pro tip: Ask for an underwritten pre-approval — it shows sellers you’re serious and ready to go.

6. What are contingencies, and do I need them?

Think of contingencies like lifelines in a real estate deal — they give you a way out if something goes wrong.

Common buyer contingencies:

• Loan approval

• Home appraisal

• Inspection results

• Disclosures (HOA, agent, seller)

Each has a deadline. You can walk away during that window with your deposit intact. Once you remove contingencies in writing, you’re committed. So yes, you need them — at least until you’re 100% sure.

7. How long does it take to close escrow in California?

Most escrows are 30 days, but it’s negotiable. Some investors push for 15-day escrows, while others may need 45 days or more.

Need flexibility? Consider:

• Asking for a rent-back if the seller needs time

• Requesting a longer escrow if you’re selling your current home

Escrow timelines are part of the offer, and they set the pace for the whole transaction.

8. How do I know I’m not overpaying for a home?

Two words: The appraisal.

The bank will send an appraiser to assess the value. If the appraisal comes in low, you’ve got 3 options:

1. Cancel the deal

2. Pay the difference out of pocket

3. Negotiate with the seller

And let’s be honest — in SoCal, “overpaying” is relative. If you love the home and plan to stay awhile, you’ll likely make up the difference in equity.

9. What should I avoid doing before buying a home?

Definitely DON’T:

• Quit or change jobs

• Rack up credit card debt

• Buy a car or large items

• Go on a shopping spree for your future home

Even small changes in your credit or employment can jeopardize your loan approval. Stay stable, stay conservative — until after closing.

10. What are closing costs and who pays them?

Closing costs = all the extra fees tied to buying a home, like:

• Escrow and title fees

• Lender fees (usually 1% of loan)

• Inspection and appraisal costs

• Homeowner’s insurance

• And more…

Typically, the buyer pays, but you can negotiate. Sometimes sellers agree to help cover costs — especially in slower markets.

Also: Since 2024, buyers may need to pay their agent’s fee too. This is new, and still negotiable in many cases.

11. What happens after my offer gets accepted?

Once your offer is accepted:

• Escrow opens

• You send your deposit

• Inspections and appraisal are scheduled

• Contingency clocks start ticking

• You’ll sign loan docs about a week before closing

• Lender funds the loan

• Escrow closes — 🎉 You get the keys!

There’s more to it, of course, but that’s the big picture. I’ve got a full buyer’s roadmap if you want all the nitty-gritty details.

12. Can you negotiate the price of a house?

Yes, but remember: Negotiation depends on leverage. Things to consider:

• Are there multiple offers?

• How long has the home been listed?

• Is the seller motivated?

• Is the home overpriced?

Sometimes you can score a deal. Other times, going over asking is the only way to win. Ask yourself: Would I regret losing this house over a few grand? If the answer is yes, don’t over-negotiate.

Final Thoughts (Not Quite a “Conclusion”) 😉

Buying a home doesn’t have to be scary — not when you’ve got the right info and someone in your corner. Here’s what to remember:

• Start with a strong pre-approval

• Don’t wait for the “perfect” rate or time

• Understand what kind of home fits your life

• Use contingencies wisely

• Ask questions, lean on your agent, and trust your gut

FAQs

Q: Can I buy with less than 20% down?
A: Yes! FHA, VA, and even some conventional loans allow for smaller down payments.

Q: Do I really need a Realtor to buy a home?
A: Absolutely. Especially in this market, having a pro on your side makes a huge difference.

Q: How long does the whole process take?
A: On average, about 30-45 days from offer to close.

📲 Ready to get started? Just touch base and I’ll walk you through the whole buying process from pre-approval to closing day.

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👉 Frank Kenny | 310-791-0123
📍 eXp Realty of Greater Los Angeles