Buying Your First Home in the South Bay

Pre-qualification is a quick, informal estimate of how much you might be able to borrow based on self-reported income and assets — no credit check required. Pre-approval is a formal process where a lender verifies your income, assets, and credit. Sellers in the South Bay market take pre-approval letters seriously; many will not accept an offer without one.

Conventional loans typically require 5–20% down. A 20% down payment avoids private mortgage insurance (PMI), which adds cost to your monthly payment. On a $1.2M home, 20% is $240,000. Some loan programs allow 3–5% down for first-time buyers, though you'll pay PMI until you reach 20% equity.

Closing costs typically run 2–3% of the loan amount and cover fees for escrow, title insurance, lender origination, appraisal, and recording. On a $1.2M purchase with 20% down, expect roughly $20,000–$30,000 in closing costs on top of your down payment.

The South Bay remains a competitive seller's market in most price ranges and neighborhoods. Well-priced homes in top school districts regularly receive multiple offers. Working with agents who know the market — and having your financing fully in order before you start touring — is the single most important step you can take.

Your buyer's agent represents your interests exclusively: finding homes that match your criteria, advising on offer strategy, negotiating on your behalf, and guiding you through inspections and closing. Under current California rules, buyers must sign a Buyer Representation Agreement (BRA) before touring homes. Compensation is negotiated as part of the transaction — we'll walk you through how this works when we connect.