15 Steps to Buying a House in California
Buying a house in California can feel overwhelming, but our 15-step guide will simplify the process and help you land your dream home.
With 39 million people who call the Golden State home, California is the most populous state in the US and ranks third in total area behind Alaska and Texas. With this in mind, buying a house in California can feel overwhelming. With so many people and rising home prices, it can be downright intimidating.
But, it doesn’t have to be! We’re here to walk you through our 15-step guide for buying a home in California. With the help of Daniel Del Real, a top agent in Modesto, California, who works with 75% more single-family homes than the average Modesto agent, we’ll give you the information you need to purchase your dream home and succeed as a California homebuyer.
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Make sure you buy within your means, [but] if the right property comes along and it’s the one that you really want and it’s the neighborhood that you need within your price point, then you go for it!
Daniel Del Real
Real Estate Agent
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Daniel Del Real
Real Estate Agent at PMZ Real Estate5.0
Currently accepting new clients
- Years of Experience
21- Transactions
1656- Average Price Point
$267k- Single Family Homes
1600
1. Assess your financial situation and future goals
We can’t always predict what the future holds — let’s be honest, we probably didn’t see ourselves locked down because of a pandemic or foresee the crazy real estate market that followed.
As of 2024, California’s real estate market is showing signs of growth, with home prices expected to rise by 6.8% in 2025, bringing the median price to about $869,500. While home prices have recently experienced some fluctuation, the combination of easing mortgage rates and an increasing supply of homes for sale suggests a potential increase in home sales. This could be an ideal time for buyers entering the market after a period of high competition.
To get started on evaluating your financial situation, take a look at your credit score and determine where it lands on the scale between poor and excellent. Typically, the better the score, the greater your chances of qualifying for an affordable mortgage. If you find that your score could use some improvement, consider disputing any errors on your credit report, paying down some of your debt, or settling any accounts that are in collections.
Del Real says it’s important to understand the reason you’re buying a home — to gain needed space, as an investment, or with future needs in mind — and to “make sure you buy within your means.” But, he adds, “If the right property comes along and it’s the one that you really want and it’s the neighborhood that you need within your price point, then you go for it!”
2. Determine how much you can afford
Living in California can be pricey. Determining what you can afford in California is a bit more complex than in other states due to factors like higher homeowners insurance rates and special assessments, like Mello-Roos districts. Despite these challenges, California buyers can take advantage of down payment assistance and first-time homebuyer programs that help make owning a home more achievable. With the right resources, your California dream home may be closer than you think.
A great place to start is with an affordability calculator, like this one from HomeLight. You can enter details such as your income, credit score, zip code, and down payment amount to get an estimate of what you might be able to afford.
