Closing costs in California typically run between 2 and 3 percent of the purchase price. On a $1,000,000 home, that means budgeting an additional $20,000 to $30,000 beyond your down payment. These costs include lender fees, title insurance, escrow fees, prepaid property taxes, and homeowner's insurance among others. They are real, they are due at closing, and they need to be planned for from the beginning.

California property taxes are assessed at approximately 1.1 to 1.25 percent of the purchase price annually, depending on the county and any applicable special assessments. On a $1,200,000 home, that translates to roughly $13,000 to $15,000 per year — or just over $1,000 to $1,250 per month added to your housing costs. This is a number many buyers underestimate, and it is important to factor it into your monthly budget from the start.

Many SoCal communities — particularly condominiums, townhomes, and planned developments — carry monthly HOA fees. These fees vary widely, from a few hundred dollars per month to well over $1,000 in some luxury communities. HOA fees directly affect your debt-to-income ratio and therefore your loan eligibility, so understanding them early matters.

After Closing Most lenders require buyers to demonstrate reserves — funds remaining in accessible accounts after all closing costs and the down payment have been paid. Beyond the lender requirement, having a financial cushion after closing is simply smart homeownership. Unexpected repairs, property improvements, and life events happen, and being house-rich but cash-poor is a position no buyer should walk into willingly.

This is a more common situation than most buyers want to admit, and there are usually more options than they initially realize. Sometimes it means exploring adjacent neighborhoods with strong fundamentals and more accessible price points. Sometimes it means adjusting the property type — a single-family home in one community versus a larger condo in another. And sometimes it means taking a few months to strengthen the financial picture before beginning the search. We work through all of those options honestly with every client.

Often, yes. Paying down existing debt, improving your credit score, saving additional reserves, or restructuring how your income is documented can all meaningfully affect your pre-approval amount and loan terms. A conversation with a trusted lender — ideally before you begin your search — can reveal which levers are worth pulling for your specific situation.

Buying at your maximum approval is rarely the right move. Your lender approves you for what you qualify for — not necessarily what is comfortable for your lifestyle and long-term financial health. We always encourage buyers to think carefully about the monthly payment they can sustain comfortably, leave room for life's variables, and buy with intention rather than simply stretching to the limit because a lender says they can.

Closing costs are fees associated with finalizing your home purchase, including loan origination fees, title insurance, appraisal fees, and more. They typically range from 2% to 5% of the home's purchase price. Some costs may be negotiable, and in certain cases, sellers may agree to cover part of them.

Your credit score plays a significant role in determining your mortgage rate. A higher score typically qualifies you for lower interest rates, which can save you thousands of dollars over the life of your loan. If your score is lower, you may still qualify for a loan, but at a higher rate.