Before you do anything else, know where you stand financially. Pull your credit report at annualcreditreport.com and check your score. For an FHA loan, you need a minimum of 580. For conventional financing, lenders typically want 620 or higher — and the better your score, the better your rate.

Add up your savings. You'll need money for your down payment (3.5% for FHA, 3–20% for conventional) plus closing costs, which typically run 2–3% of the purchase price. On a $700,000 home, that's $14,000–$21,000 on top of your down payment. Knowing this number upfront saves a lot of heartbreak later.

Look at your monthly debts — car payments, student loans, credit cards. Lenders use your debt-to-income ratio (DTI) to decide how much you can borrow. Most programs cap it at 43–50%. Paying down high balances before applying can open up your options significantly.

There's a big difference between these two, and sellers know it. Pre-qualification is a quick estimate based on what you tell a lender. Pre-approval means a lender has actually reviewed your documents — tax returns, pay stubs, bank statements, credit pull — and is committing to lending you a specific amount.

In Downey's market, sellers will not seriously consider your offer without a solid pre-approval letter. It's that simple. Work with a local lender who knows Southern California — FHA guidelines, down payment assistance programs, and the pace of the local market. A big national bank isn't always the right fit here.

You want someone who knows Downey specifically — not just someone with a real estate license and a willingness to drive anywhere. The right agent knows which streets hold value, which pockets are up-and-coming, how fast homes typically move, and what offer strategies are working right now.

Ask about their recent sales in the area, how many buyers they've represented in the past year, and how they communicate. You're going to be in close contact with this person for 30–60 days. Make sure it's someone you trust and can actually reach.

Before you start touring homes, define your must-haves versus your nice-to-haves. Bedrooms, bathrooms, garage, yard, school district — get clear on what's non-negotiable. Then set up MLS alerts so you're notified the moment a matching home hits the market. In a fast market, hesitation is expensive.

Tour homes with clear eyes, not emotions. It's easy to fall in love with a kitchen remodel and overlook a bad roof or a location problem. Your agent's job is to help you see the full picture, not just the pretty staging.

In Downey, offer structure matters as much as price. A strong offer includes the right purchase price based on comps, a solid earnest money deposit (typically 1–3%), well-structured contingencies, and a realistic closing timeline. Your agent will help you build an offer that's competitive without leaving you exposed.

Know the market before you write a number. Downey homes are selling at about 99.6% of list price — meaning sellers are getting close to what they ask. Lowball offers don't just fail; they can sour the seller and close the door on negotiation entirely.

Once your offer is accepted, you enter escrow and your due diligence window opens. Use it. Schedule a general home inspection immediately — typically within 5–7 days of opening escrow. For older Downey homes (and many are), also consider a pest inspection, roof inspection, and sewer scope.

These inspections give you the information you need to either move forward confidently, negotiate repairs or credits, or walk away. This protection is one of the most important parts of the process. Don't skip it to look more competitive — understand what you're agreeing to.

Your lender will order an appraisal to confirm the home's value supports the loan amount. The appraiser is independent — hired by the lender, not by you or the seller. If the home appraises at or above your purchase price, you move forward. If it comes in low, you have options: renegotiate the price, make up the difference in cash, or in some cases, walk away.

FHA appraisals also check the property's condition against HUD minimum standards. The appraiser can flag issues like peeling paint, exposed wiring, or health-and-safety concerns that must be addressed before the loan closes. This is worth knowing if you're making an FHA offer on an older home.

After the appraisal clears, your file goes to the lender's underwriter for final review. This is where loans sometimes hit speed bumps — the underwriter may request additional documentation or ask for explanations on items in your file. Respond quickly. Delays here push back your closing date.

The most important thing during this stage: do not make any major financial moves. No new credit cards. No large purchases. No co-signing loans. No job changes if you can help it. The lender will verify your financial status again right before funding, and any change can derail your loan.

You'll have a signing appointment — usually at the escrow or title company — where you sign the loan documents. This takes about an hour. Bring your government-issued ID. After signing, you wire your closing funds to escrow (confirm wire instructions by phone — more on that below).

The lender funds the loan, the county records the deed, and then — finally — you get your keys. In California, possession is typically on the day of recording. Your agent will be in contact throughout to confirm timing so you're not left wondering.