Buyers FAQ: California Home Buying Questions Answered

California Home Buyer FAQs: Your Guide to Purchasing in 2026

Buying a home in California—especially in competitive areas like Orange County and Rancho Santa Margarita—comes with unique considerations, from high property values and natural hazard disclosures to state-specific programs like CalHFA for first-time buyers. Whether you're a first-time buyer navigating down payments and credit requirements or an experienced purchaser evaluating market timing and contingencies, these frequently asked questions address the most common concerns we hear at MacLean Realty Group.

Our FAQs cover everything from getting pre-approved and calculating affordability to understanding inspections, earnest money, and closing costs in California's dynamic market. No matter where you are in the process, the answers below are tailored to current 2026 conditions, including stabilizing interest rates and local inventory trends.

For personalized advice on buying in Rancho Santa Margarita, Orange County, or elsewhere in Southern California, contact Robert MacLean at MacLean Realty Group. We're here to help you make informed decisions—reach out today or explore related resources like our California Probate FAQs if you're considering inherited properties.

What is the first step to buying a home in California?

The first step is getting pre-approved for a mortgage from a California lender to determine your budget and strengthen offers in competitive markets like Orange County. At MacLean Realty Group in Rancho Santa Margarita, we recommend starting with local lenders familiar with CalHFA programs for first-time buyers.

How much home can I realistically afford in California right now?

The ultimate goal would be to use the 28/36 rule (28% of income on housing, 36% on total debt), but factor in California's high property taxes (~0.75-1.2%), insurance (especially wildfire/earthquake), and HOA fees. In areas like Rancho Santa Margarita, aim for payments that leave room for rising costs—consult a lender for a personalized affordability analysis. Lenders will allow you to go up to ~45%.

Do I need a buyer's agent when purchasing a home in California?

Yes—a buyer's agent (like those at MacLean Realty Group) provides expert negotiation, market insights, and access to off-market listings at no direct cost to you (commission typically paid by seller). In fast-moving Orange County markets, they're essential for competing effectively.

What credit score do I need to buy a house in California in 2026?

Aim for 620+ for conventional loans, 580+ for FHA; scores above 700 secure the best rates amid California's expensive housing. Improve your score with on-time payments and low credit utilization before applying.

How much down payment is required for a home in California?

Conventional loans start at 3-5%, FHA at 3.5%, VA/USDA at 0%; to avoid PMI, target 20%. California offers assistance like CalHFA for first-timers—many Orange County buyers qualify for down payment help. For more info you can read: The Truth About Down Payments and learn about Down Payment Assistant Programs.

Is it a good time to buy a home in California in 2026?

With stabilizing rates (around 6%) and increasing inventory, 2026 offers better affordability than recent years, though prices remain high in Southern California. In Orange County, low inventory still favors prepared buyers—act if it fits your finances.

What are typical closing costs for buyers in California?

Expect 2-5% of the purchase price (title insurance, escrow, appraisals, inspections). In Orange County, negotiate seller credits to offset these—MacLean Realty Group helps buyers secure concessions.

How long does it take to close on a house in California?

Typically 30-60 days from offer acceptance, longer with inspections or contingencies (e.g., natural hazard disclosures). California's strict requirements add time—plan accordingly in competitive areas. Learn more about the Buyer Timeline.

Why is a home inspection important when buying in California?

It reveals issues like seismic retrofits, wildfire risks, or flood zones—critical in California. Always include an inspection contingency to negotiate repairs or credits.

Can I buy a home in California with bad credit or low income?

Yes—FHA loans forgive lower scores, and programs like CalHFA assist first-timers. Work with a HUD counselor to improve eligibility.