By David Sanchez, REALTOR® | Long Beach, CA

The steps to buying your first home in Southern California are easier to follow than most people expect, but a few common myths keep first-time buyers on the sidelines for years. I have been helping buyers across Long Beach, Los Angeles, and Orange County since 2017, and the same two worries come up again and again: “I do not have 20% down” and “I cannot afford my dream home.” Both can be solved with the right plan.

Below is the path I walk my buyers through, along with the real-world advice I wish every first-time buyer heard before they started scrolling listings.

The Steps to Buying Your First Home in Southern California at a Glance

1. Learn the process by joining a first-time home buyer seminar.
2. Get pre-approved with a lender before you tour homes.
3. Understand your down payment and loan program options.
4. Partner with a buyer’s agent you trust.
5. Choose a starter home that fits your budget and your goals.
6. Make an offer, complete your inspections, and move through escrow to closing.

Step 1: Start With Education, Not Open Houses

The first thing I tell people to do is join one of our first-time homebuyer seminars. They are low-pressure, and they are a simple way to understand what it is actually like to purchase a home before you commit to anything. A trusted lender joins every seminar as well, so you can ask real questions about qualifying, payments, and programs in one sitting.

You can find the next date, in person or on Zoom, at LivingCAHome.com. If you would like something to read first, our free Southern California Home Buyer’s Guide covers the process from start to finish.

Step 2: Get Pre-Approved Before You Look at Homes

Before we start looking, you want some kind of pre-approval. Here is why: there is no point touring homes at $1,000,000 if you qualify for $600,000. A $600,000 budget can buy a really nice home, but if you spend your weekends looking at higher prices, you will likely end up disappointed when the numbers do not work.

A pre-approval tells you your real price range, which keeps your search focused and makes your offers stronger once you find the right place. If you do not have a lender yet, talk to a trusted one, or reach out to our team and we can connect you with someone.

Step 3: Rethink the Down Payment and Explore Loan Programs

The 20% Down Payment Myth

The biggest misconception I hear is that you need 20% down. Many of us were taught that by our parents, and it used to be much more common. Today, putting down 5% to 10% is very common. If you do have 20%, that is great, because you can avoid private mortgage insurance (PMI), which is an added monthly cost on many loans with a smaller down payment. But for many buyers, the goal is simply getting your foot in the door.

Loan Programs Worth Asking About

Every buyer’s situation is different, so I always recommend asking a lender about all of these:

• FHA loans: a good starting point for many first-time buyers, with a low minimum down payment. You can read the basics on the HUD website.
• CalHFA: California’s housing finance agency offers programs for eligible first-time buyers, including help for those who do not have a large down payment saved. See the CalHFA website for current programs.
• Conventional loans: some conventional loan programs allow a down payment as low as 3%.
• City, county, and lender grants: some cities, counties, and lenders offer grants that do not have to be repaid.

Assistance programs usually come with a catch, such as living in the home for a minimum number of years or staying under an income limit. Do not rule yourself out too quickly. Some buyers assume they earn too much to qualify, and then find out the income limit is higher than they expected. I have had clients use a number of these programs, so they are worth a conversation with a lender. Program terms change often, so always confirm current details directly with the lender or agency.

Step 4: Work With a Buyer’s Agent

Once you know your budget, you want an agent who can walk through the process with you, from writing offers to negotiating repairs to closing. In Southern California, where homes can move quickly, having someone who knows the neighborhoods, the complexes, and the contract details makes a real difference.

Step 5: Do Not Wait for Your Dream Home

Some buyers decide to wait for their dream home, and sometimes that dream is a $1,500,000 single-family home. If that fits your budget as a starting point, wonderful. For many people, though, the smartest first move is a condo, a townhome, or even a fixer-upper single-family home that they can grow into. You can make upgrades over time, build equity, and often trade up to that dream home later.

A Real Example From One of Our Seminars

Years ago, a single buyer came to one of my home buyer seminars. They purchased a one-bedroom, one-bathroom condo in Long Beach. A few years later, after their family grew, they sold the condo and moved up to a single-family home, also in Long Beach, with the extra space they needed. That first condo was the stepping stone that made the second purchase possible.

Step 6: Make an Offer and Move Through Escrow

When you find the right home, your agent will help you write an offer, negotiate the terms, schedule inspections, and keep you on track through escrow until you get the keys. Having your pre-approval ready and your finances organized up front makes this stage much smoother.

Final Thoughts on the Steps to Buying Your First Home in Southern California

You do not need 20% down, and you do not need to start with your dream home. You do need a plan: learn the process, get pre-approved, explore your loan options, and partner with an agent who will guide you. Start small, build equity, and grow from there.

First-Time Home Buyer FAQs

David Sanchez, REALTOR® and Community Ambassador
562-537-9206 | David@LivingCARealty.com
Living CA Realty | Brokered by eXp Realty | DRE #02029945
YourRealtorDavid.com | LivingCARealty.com
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