First-time homebuyers · From List to Sold

Buying Your First Home: A Step-by-Step Roadmap

Buying your first home comes with a lot of new words, deadlines and decisions. This roadmap explains each step in plain language, what you’ll do at each one, and the questions first-time buyers ask us most.

From brokers Michael & Anita Marchena · 400+ home sales with buyers and sellers across Southern California

On this page: The 10 steps · Budget · Preapproval · Offer · Inspections & appraisal · Escrow & closing · After the keys · Questions

The roadmap

Ten steps from "Can we buy?" to "Here are your keys"

Understand your budget

Know the full monthly cost and the cash you’ll need, not just the price.

Get preapproval ready

Talk with a lender so you know your price range before you shop.

Define the search

Decide on areas, must-haves and the costs that come with each home.

Tour homes

See homes in person and look past the staging.

Write an offer

Set price and terms with help from the comparable sales.

Inspections

Learn the home’s condition and decide what to ask for.

Appraisal

The lender confirms the home’s value supports the loan.

Escrow

A neutral escrow holder manages funds and documents.

Closing

Final walkthrough, signing, funding and recording.

Get the keys

Move in, then handle a few first-year homeowner tasks.

Step 1

Understand your budget

A lender will tell you the most you can borrow. Your budget is what you’re comfortable paying every month, with savings left over. Think about both:

The monthly cost

Loan principal and interest
Property taxes
Homeowners insurance
HOA dues, if the home has an HOA
Special taxes such as Mello-Roos/CFD, where they apply
Mortgage insurance, if your loan requires it
Utilities, upkeep and repairs

The cash you'll need

The earnest money deposit when your offer is accepted
Inspection fees, and often an appraisal fee
Your down payment
Closing costs (loan, escrow, title and prepaid items)
Moving costs, plus savings left over for surprises

Ask your lender for a written estimate of your costs. We don’t give lending or tax advice.

Step 2

Get preapproval ready

A prequalification is a lender’s quick estimate based on what you tell them. A preapproval goes further: the lender reviews documents such as pay stubs, tax returns or W-2s, bank statements and your credit, then issues a letter saying how much you’re likely to be able to borrow. Sellers usually expect a preapproval letter with an offer. It isn’t a final loan approval; the lender still reviews the home and your file before closing.

While you shop

Avoid opening new credit, making large purchases or changing jobs without talking to your lender first. Changes can affect your approval.

Down payment

Ask your lender which down payment options fit you and whether you may qualify for any down payment assistance.

Choosing a lender

You can work with any lender you choose. Compare their written loan estimates, not just the advertised rate.

Looking for a place to start? Marchena Home Team has a pre-approval resource on MarchenaHomeTeam.com.

Steps 3 and 4

Define the search, then tour homes

Define the search

List your must-haves and your nice-to-haves
Check commute times at the hours you’ll drive
Confirm school assignment by address, not by city
Ask about HOA rules and dues, and any special taxes
Decide how much repair work you’re willing to take on
Compare new construction and resale homes

Tour homes

We review the written buyer agreement with you before we start touring
Look past paint and furniture at the roof, windows, water heater, heating and air
Watch for water stains, cracks, slopes and drainage
Visit at different times of day to check noise and traffic
Take photos and notes so homes don’t blur together

Step 5

Write an offer

Your offer is a written purchase contract. Price matters, but so do the other terms. We’ll explain each one and look at recent comparable sales with you before you decide.

Price and deposit

What you’ll pay, and the earnest money deposit you’ll put into escrow once the offer is accepted.

Contingencies

Conditions that let you investigate or cancel within set deadlines, such as inspection, appraisal and loan contingencies.

Timelines

How many days you have for each contingency, and the closing date.

Credits and repairs

Whether you ask the seller to pay some closing costs or make repairs.

What's included

Appliances, fixtures and anything else you expect to stay with the home.

Multiple offers

If other buyers are interested, we’ll talk through how to make your offer clear and competitive within your budget.

Steps 6 and 7

Inspections and the appraisal

Inspections

A general home inspection is the usual starting point. Depending on the home, you may also want a termite or pest inspection, a roof inspection, a sewer-line or septic inspection, or a pool inspection. Read the seller’s disclosures alongside the reports.

Then decide: move forward, ask the seller for repairs or a credit, or, if your contract allows, cancel before the contingency deadline. Once you remove a contingency, its protection ends.

Appraisal

If you’re getting a loan, the lender orders an appraisal to confirm the home’s value supports it. If the appraisal comes in below your price, common options include renegotiating the price, covering the difference yourself, or cancelling within your appraisal contingency, depending on your contract.

Steps 8 and 9

Escrow and closing

During escrow

Escrow, a neutral third party, holds the deposit and documents and follows the contract’s instructions
A title company searches the property’s records and issues title insurance
Get homeowners insurance quotes early; your lender will need proof of coverage
Answer your lender’s requests quickly so the loan can be fully approved

Closing day

Do a final walkthrough to confirm the home’s condition and any agreed repairs
Sign your loan and escrow documents
Your funds and the loan are sent to escrow
The deed is recorded with the county, and the home is yours

Protect your money from wire fraud

Scammers send fake emails with “updated” wiring instructions. Before you wire any money, call your escrow officer at a phone number you already know, not one in the email, and confirm the instructions. We will never email you new wiring instructions.

Step 10

Get the keys, then a few first-year tasks

You get the keys once the sale records, or on the possession date in your contract. After you move in:

Change the locks and garage codes, and set up utilities in your name.
Keep your closing documents and your inspection reports in a safe place.
If it’s your main home, ask the county assessor about the California homeowners’ exemption, which lowers the assessed value by $7,000. California BOE: homeowners’ exemption.
Expect a supplemental property tax bill; California counties reassess a home when it changes ownership.

First-time buyer questions

How much do I need to save to buy my first home?

It depends on the price, your loan and your lender’s requirements. Plan for the deposit, inspections, down payment, closing costs and moving, with savings left over. A lender can give you a written estimate.

Do I have to use a buyer's agent?

No, but having your own agent means someone is looking out for your interests. If you work with an agent, California requires a written buyer-representation agreement no later than when you make an offer. See buyer agreements.

What is earnest money?

It’s a deposit you place in escrow after your offer is accepted. It shows the seller you’re serious and is applied toward your purchase at closing. Your contract explains when it could be at risk.

How long does buying a home take?

Finding the right home can take weeks or months. Once your offer is accepted, the escrow period is set in your contract. We’ll show you every deadline from day one.

I need to sell a home before I can buy. Where do I start?

Start with our selling and buying guide, which compares selling first, buying first and coordinating both.

Should I look at new construction?

It can be a good fit. The process differs from a resale purchase, so compare both. See new construction vs resale.

From a first-time buyer

“The Marchena Home Team helped us find our perfect home! They were SO easy to work with and very family friendly. Michael and Anita kept us in the loop with everything that went down and made our first time buying experience a great one! The next time we decide to purchase a new house we will use them again! I recommend this awesome team and would give them a 10/10! Thanks guys!!!!!”

Kristina R · Facebook review · first-time buyer

Review quoted as posted on Facebook. Individual experiences vary.

Michael and Anita Marchena have helped buyers and sellers with more than 400 home sales across Southern California. How we represent buyers · About Michael and Anita

First-time homebuyers

Start your first home purchase

Tell us a little about your plans. Michael or Anita will follow up to answer your questions and talk through the next steps, whether you’re ready now or just getting started.

From List to Sold by Marchena Home Team at My Key Real Estate.

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