If there is one thing consistent across all homebuyers, it's that you guys have questions - and lots of them! I love to answer those questions, so here are 10 that I hear all the time.

Q1: I've been pre-approved. Does that mean I can start making offers?

Pre-approval is an important first step, but there's a difference between pre-approval and being truly ready to move. A pre-approval letter tells sellers you've had a basic financial check; it doesn't mean your financing is totally locked in unless you have already been fully underwritten, which is actually a great idea, especially in a fast-paced and competitive market. Being fully underwritten will help eliminate that stressful uncertainty during escrow where you are wondering if you are going to get your loan. Before you start making offers, make sure you understand your actual budget (not just the maximum the bank will lend you); make sure you have your down payment AND closing costs liquid; and make sure that you haven't made any large purchases or opened new credit lines since your pre-approval. 

Q2: What's the difference between a home inspection and an appraisal, and do I need both?

Yes, you will most likely need both, and they serve completely different purposes. An appraisal is ordered by your lender to confirm the home is worth what you're paying for it (and what they are lending you for it). It protects the bank. A home inspection is ordered by you to understand the actual condition of the property. You'll be investigating this like the roof, the plumbing, the electrical, the foundation, the HVAC. The inspection protects you. We will also use the findings of that inspection to see if we can negotiate any repairs or credits while you are in your due diligence period.

Q3: What is a home warranty, and is it worth getting?

A home warranty is a service contract that is separate from homeowner's insurance that covers the repair or replacement of major home systems and appliances that can break down due to normal wear and tear. Think furnaces, water heaters, dishwashers, electrical panels. It's not a substitute for insurance (which covers sudden damage like fire or flooding and liability coverage), but it can be a real financial buffer in your first year of ownership when you're still learning the quirks of a new home. We usually ask the seller to pay for a home warranty when you write an offer on a home, and if the seller won't pay, I highly suggest you buy one at least for that first year. Read the fine print carefully: coverage limits, exclusions, and service fees vary widely by provider.

Q4: How much should I budget for home maintenance each year?

The rule of thumb most financial advisors use is 1% of the home's purchase price per year, set aside specifically for maintenance and repairs. On a $700,000 home, that's $7,000 annually. Some years you'll spend far less. Other years, if you need a new roof, a water heater, a re-pipe - you'll spend more. The point is to have the reserves so that when something breaks, it's an inconvenience, not a crisis. New construction homes tend to have lower maintenance costs in the early years; older homes, especially those with deferred maintenance, can demand more. Your home inspection report will give you a roadmap of what's coming and roughly when.

Q5: What are the most important things to check on regularly once I own a home?

The items that cause the most expensive damage when ignored are almost always the ones no one thinks about. A few high-priority habits: check your HVAC filters every 1–3 months and replace them (poor filtration shortens system life significantly); inspect your roof and gutters every fall because clogged gutters are a leading cause of water intrusion and foundation issues; test your smoke and carbon monoxide detectors twice a year; check under sinks and around toilets periodically for slow leaks (and install water alarms in those areas); and flush your water heater annually to remove sediment buildup. None of these take more than a few minutes, and together they can add years of life to major systems.

Q6: What's homeowner's insurance, and how much do I need?

Homeowner's insurance covers structural damage to your home and personal property loss from covered perils. Those are things like fire, theft, certain weather events. It also provides liability protection if someone is injured on your property. Lenders require it. The key number to insure to is the replacement cost of the home (what it would cost to rebuild), not the market value. In California, it's also worth discussing earthquake coverage separately, as standard policies typically exclude it. And be sure to check out California Fair Plan if you are struggling to get fire insurance. Shop at least three to four insurers, and make sure you understand your deductible and exactly what's excluded. In some high-risk areas, especially near wildfire zones, coverage has become harder to find. That could be a factor in your home search.

Q7: What closing costs should I expect, and are they negotiable?

Closing costs in California typically run 1.5–3% of the purchase price on the buyer's side, so on a $900,000 home, that's roughly $13,500–$27,000 on top of your down payment. They include lender fees, title insurance, escrow fees, prepaid property taxes, and homeowner's insurance. Some of these costs are fixed; others are negotiable or shoppable. You can, for example, compare title companies and choose your own, or negotiate with the seller to cover a portion of your closing costs (a seller concession), though that's more realistic in a softer market. Your lender is required to give you a Loan Estimate within three business days of your application, which will break down expected costs line by line. Review it carefully and ask questions. Keep in mind that now the buyer's agent compensation is also part of the buyer's closing costs. We'll have a whole separate article that talks about that and how it works. 

Q8: Should I put 20% down, or is a smaller down payment okay?

Twenty percent has long been cited as the gold standard because it eliminates Private Mortgage Insurance (PMI), which is an added monthly cost that protects the lender, not you. But it's not the right answer for everyone. There are strong loan programs with 3–10% down that make sense depending on your financial situation, and in some cases, preserving cash reserves (see: maintenance budget above) is smarter than draining savings to hit 20%. What matters most is that your monthly payment is genuinely comfortable, you're not stretched too thin at closing, and you have a clear plan for paying down PMI if you carry it. Talk to a lender who will model multiple scenarios for you, not just the one that gets you to close fastest. I'm always happy to share the contact info of competent lenders I've worked with in the past if you need a good referral. 

Q9: Is there anything I should NOT do between signing the contract and closing?

Several things, and they matter more than most buyers realize. Don't open any new credit accounts ...seriously, don't. Don't make large purchases like furniture, a car, or appliances, even if they're for the new home. I once had a buyer charge thousands of dollars for an engagement ring just before closing and it changed his entire credit profile. (It was either the ring or the house, so he chose the house.) Don't change jobs or quit your job. Don't move large sums of money between accounts without documenting the source. Your lender will re-verify your employment, credit, and financial picture right before closing, and any of these changes can delay or derail your loan. The rule is simple: keep your financial life as boring and stable as possible from the moment your offer is accepted until after you have the keys in hand.

Q10: Once I close, what are the first things I should do as a new homeowner?

Beyond the champagne: change every lock right away. You have no way of knowing who has copies of the existing keys. Locate your main water shut-off valve before you need it in an emergency. Do the same for your electrical panel and gas shut-off. Set up automatic payments for your mortgage, property taxes (if not impounded), and insurance so nothing falls through the cracks. File for your Homestead Exemption with the county if you're in California. It provides limited protection against creditors and matters in estate planning. And take the time to get your inspection report back out and actually read it. The items flagged as "monitor" or "future repair" are your maintenance to-do list. Start working through them before they become emergencies. And then reach out to me if you have any questions. I'm always around to help my clients, both present and past!