Most lenders recommend keeping your monthly mortgage payment below 28% of your gross monthly income. A good rule of thumb: multiply your annual income by 2.5–3x to estimate your home buying budget. Factor in your down payment, debt-to-income ratio (DTI), credit score, and current mortgage interest rates. Use a mortgage affordability calculator or speak with a local lender for a pre-qualification.

The first step is getting pre-approved for a mortgage. A mortgage pre-approval letter shows sellers you're a serious buyer and establishes your loan limit. Before applying, review your credit score (aim for 620+), gather financial documents (W-2s, pay stubs, bank statements), and compare lenders for the best interest rate. Once pre-approved, work with a licensed real estate agent to start your home search.

On average, the home buying process takes 30–90 days from accepted offer to closing. This includes time for the home inspection, appraisal, loan underwriting, and title search. If you're searching for a home, add 1–6 months depending on market inventory and your criteria. In competitive real estate markets like San Diego, moving quickly with a strong pre-approval is essential.

Earnest money is a good-faith deposit you make when submitting an offer on a home. It tells the seller you're serious. Typically 1–3% of the purchase price, earnest money is held in escrow and applied to your down payment or closing costs at settlement. If you back out for a non-contingency reason, you may forfeit it — so make sure your offer includes appropriate contingencies.

Buyer closing costs typically range from 2–5% of the loan amount and include lender fees, appraisal fee, title insurance, escrow fees, property taxes, and prepaid homeowners insurance. On a $600,000 home, expect $12,000–$30,000 in closing costs. Ask your lender for a Loan Estimate early in the process — it is legally required within 3 business days of your application.

Yes — always. A home inspection is one of the most important steps in the home buying process. A licensed home inspector evaluates the structural integrity, roof, plumbing, electrical systems, HVAC, and more. Inspections typically cost $300–$600 and can reveal issues that allow you to renegotiate the price, request repairs, or walk away. Skipping it is one of the most common and costly home buyer mistakes.

A buyer's agent is a licensed real estate agent who represents your interests exclusively when purchasing a home. They help you find properties, negotiate the best price, navigate contracts, and manage the closing process. As of 2024, buyers must sign a buyer representation agreement that outlines agent compensation upfront before touring homes.

The minimum credit score to buy a house depends on the loan type: conventional loans typically require 620+, FHA loans allow as low as 580 (with 3.5% down), and VA loans have no official minimum. However, higher credit scores unlock better mortgage interest rates. A score of 740+ often qualifies you for the most competitive rates, saving you tens of thousands over the life of your loan.