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Buying your first home in Los Angeles can feel exciting and intimidating. Prices, neighborhoods, and competition change block by block, and it is easy to wonder where to start. You deserve a clear plan and a trusted guide who knows how LA really works. In this step-by-step guide, you will learn how to prepare, shop, make a competitive offer, and close with confidence, plus how to tap local programs and protect your budget. Let’s dive in.
Los Angeles is not one market. It is a patchwork of submarkets like the Westside, Eastside, San Fernando Valley, South Bay, and more. Competition and prices can vary by neighborhood and price band.
Recent years brought higher mortgage rates and low inventory in many desirable areas. Entry-level homes and well-priced condos can still draw multiple offers. To track current trends and timing, review the latest regional data from the California Association of REALTORS market reports before you start touring.
If you are flexible on location, you may find more attainable options in inland neighborhoods, parts of the Valley, some South Bay pockets, and condos or small multiunit properties. Your strategy should match your price range, commute goals, and timeline.
Start with financial housekeeping. Gather your ID, recent pay stubs, two years of W‑2s or tax returns, bank and investment statements, and any gift letters. Check your credit for errors and pay down high-interest balances if you can.
Save for your down payment plus closing costs. A practical rule is to budget closing costs at about 2 to 5 percent of the purchase price. Also plan reserves for immediate repairs and move-in needs.
Request a written mortgage pre-approval, not just a pre-qualification. A lender-reviewed pre-approval is stronger in competitive situations. Compare several lenders for rate, fees, and speed. Local credit unions or community banks may offer first-time buyer options.
Spanish terms you may see: pre-approval = preaprobación; down payment = enganche.
Define your must-haves, nice-to-haves, and deal breakers. In LA, weigh commute time, parking needs, and access to services. If you are considering condos, review HOA rules, dues, parking arrangements, rental policies, and any recent or pending special assessments.
Work with your agent to see homes as soon as they hit the market. In hot submarkets, speed matters. For condos, check common areas, elevator condition, and maintenance.
Your offer includes price, deposit, contingencies, escrow period, closing date, and any seller credits or included items. Competitive touches can include an escalation clause, a higher earnest money deposit, and a shorter inspection period. Each choice affects your risk and leverage.
Spanish terms: earnest money = depósito de garantÃa; escrow = depósito en garantÃa (escrow).
Common protections include loan, appraisal, and inspection contingencies, plus title review and HOA document review for condos. Shortening timeframes can help you compete while still allowing due diligence. If you consider waiving contingencies, talk through the risks and possible pre-offer inspections with your agent.
From acceptance to closing, escrow in California commonly runs 30 to 45 days. You will complete a general home inspection, a pest (termite) inspection, and any specialty inspections recommended by your inspector, such as roof, foundation, sewer lateral, or HVAC. Your lender will order an appraisal.
You will also review the preliminary title report, seller disclosures, and if buying a condo, HOA financials, CC&Rs, and meeting minutes. Secure homeowner’s insurance early to avoid delays.
Your lender issues final approval, you complete a final walk-through, sign closing documents, and the deed records. After recording, you receive the keys per the possession terms in your contract.
Expect closing costs around 2 to 5 percent of the purchase price. These can include lender fees, title and escrow, prepaid taxes and insurance, and HOA move-in fees where applicable. Ask your lender for a Loan Estimate to compare options.
California’s Prop 13 generally limits annual increases of assessed value until a change of ownership triggers reassessment. Plan for a base property tax near 1 percent of assessed value, plus any parcel taxes, special assessments, or Mello‑Roos in newer communities. To understand how a specific property is taxed, visit the Los Angeles County Assessor’s property tax resources.
County and city transfer taxes and recording fees vary by location and price. These costs can be meaningful in higher-value transactions. For document recording information and fee schedules, consult the Los Angeles County Registrar-Recorder/County Clerk.
Condos often offer a lower entry price and less personal maintenance. In exchange, you will pay monthly HOA dues and should plan for possible special assessments. Some loan programs have condo project approval rules, which can affect your financing options.
Single-family homes provide more control and privacy, but maintenance and utilities are usually higher and fully your responsibility. Your choice should balance monthly budget, lifestyle, and long-term plans.
California requires several disclosures that help you understand property condition and risk. You should receive a Transfer Disclosure Statement, a Natural Hazard Disclosure report, and lead-based paint disclosures for homes built before 1978. Condo buyers also receive HOA documents, financials, and any litigation disclosures.
Review these materials carefully and ask questions. For general consumer guidance, the California Department of Real Estate consumer page is a helpful reference.
Earthquake risk is part of owning in LA. Standard homeowners insurance does not include earthquake coverage. You can purchase earthquake insurance separately. Wildfire and flood risk can also affect premiums and availability.
To understand area risks, check FEMA’s Flood Map Service Center and Cal Fire’s Fire Hazard Severity Zones. Your agent and insurer can help you interpret results and estimate costs.
The California Housing Finance Agency offers first-time buyer loans and down payment or closing cost assistance, subject to income and price limits. Start with the CalHFA homebuyer programs to review options and eligibility rules. Many materials are available in Spanish.
City and county programs may offer assistance or education that changes over time. Check availability, income limits, and whether funds are first-come. For county-level opportunities and updates, visit the Los Angeles County Development Authority homeownership programs.
HUD-approved housing counselors offer free or low-cost guidance on budgeting, credit, and the homebuying process. Counseling is available in multiple languages. You can search for a provider through HUD-approved housing counseling agencies.
Conventional loans can start as low as 3 percent down for qualified buyers, with private mortgage insurance if you put less than 20 percent down. FHA loans allow 3.5 percent down with mortgage insurance. VA loans offer low or no down payment for eligible service members and veterans. Your lender will explain program limits and property rules.
Spanish terms you may see: closing costs = costos de cierre; homeowners association = asociación de propietarios (HOA).
Have proof of funds ready for your deposit and down payment. Consider an escalation clause with a clear ceiling, a higher earnest money deposit, or shorter contingency periods to strengthen your offer. If you consider waiving contingencies, reduce risk by arranging pre-offer inspections where possible and reviewing seller disclosures early.
Ask your agent to request disclosures such as the Transfer Disclosure Statement and Natural Hazard Disclosure before you submit an offer. This allows you to write a cleaner, more confident offer.
In LA, commute can shape daily life. Test your typical route during peak hours and consider transit options where available. To explore rail and bus lines that may serve your target neighborhoods, use LA Metro’s system resources.
If you work in core job centers like Downtown, Westside, or media hubs in Burbank and Glendale, weigh commute time against housing options. Parking and garage needs should also factor into your search.
Your home search can take weeks to months depending on inventory and your criteria. Once you are under contract, escrow commonly runs 30 to 45 days. Cash purchases or highly streamlined files can close faster, while complex loans or sale-related contingencies may extend the timeline.
Check lender turn times and confirm target closing dates in your purchase agreement. Build in buffer time for appraisals, supplemental inspections, and HOA document review.
You do not have to navigate Los Angeles alone. If you want patient, step-by-step guidance with a local who knows Eastside suburbs like Monterey Park, Montebello, Pico Rivera, Downey, and Whittier, you are in the right place. Work with a boutique, owner-led broker who will help you prepare, shop smart, compete with confidence, and close well. Clients who buy or sell with us also receive a complimentary living trust after closing.
Have questions or want to map a budget and timeline? Schedule a free consultation with Rafael Viramontes. We are bilingual and ready to help.