Buying

Buying a home in the Bay Area is one of the biggest moves you will ever make, and it does not have to feel overwhelming. This guide walks you through the entire journey, from the day you decide to buy all the way to the moment the keys are in your hand, plus what to take care of after you move in. Read it start to finish, or jump to the step you are on using the menu below.

I am Harv Balu, a REALTOR® serving Fremont, Union City, Newark, Hayward, and the greater East Bay. My job is to protect your interests, sharpen your numbers, and make sure nothing slips through the cracks. Let us get you to the closing table with confidence.

The home buying journey at a glance

Every purchase is a little different, but almost all of them follow the same arc. Here is the full path so you can see where each step fits:

1. Prepare: set your budget, check your credit, and save for the down payment and closing costs.
2. Get pre-approved: a lender verifies your income, assets, and credit and tells you what you can borrow.
3. Build your team: choose a buyer agent who represents you, and a lender you trust.
4. Shop: define your needs, search, and tour homes.
5. Offer: write a competitive offer with the right price and contingencies.
6. Open escrow: your accepted offer becomes a contract and a neutral third party holds the funds.
7. Investigate: complete inspections, read the disclosures, and review the appraisal.
8. Finalize the loan: underwriting clears your file and you lock your rate.
9. Remove contingencies: you commit once you are satisfied with the home, the loan, and the value.
10. Close: sign, fund, record, and get your keys.

From accepted offer to keys, a financed purchase in our market often takes about three to five weeks, though all-cash deals can move faster and complex files can take longer. New to the language of real estate? Keep my glossary of real estate terms open in another tab as you read.

Step 1: Know your why and your numbers

Before you look at a single listing, get clear on two things: why you are buying, and what you can comfortably afford. The why keeps you focused when the search gets emotional. The numbers keep you safe.

A healthy budget looks at more than the purchase price. Your true monthly cost of owning includes:

• Principal and interest on your mortgage.
• Property taxes, which in California are generally around one percent of the assessed value plus local voter-approved assessments. Confirm the exact rate for the property with the county.
• Homeowners insurance, which has become a bigger line item in California. Read my note on the recent insurance rate changes so there are no surprises.
• Mortgage insurance (PMI) if your down payment is under twenty percent on a conventional loan.
• HOA dues if the home is a condo or in a planned community.
• Maintenance and reserves, a smart rule of thumb is to set aside roughly one percent of the home value per year for upkeep.

A common guideline is to keep your total housing payment within a comfortable share of your gross income, but the right number is the one that lets you sleep at night and still live your life. For a deeper look at what it takes to buy here, see my piece on Bay Area housing affordability and California reforms.

Step 2: Check and strengthen your credit

Your credit score has a direct effect on the interest rate you are offered, and even a small rate difference adds up over the life of a loan. Pull your credit early so you have time to fix anything before a lender looks.

• Get your free annual report from each of the three bureaus and dispute any errors.
• Pay every bill on time, on-time payment history is the single largest factor.
• Keep credit card balances low relative to your limits.
• Avoid opening or closing accounts right before you apply.

Many conventional loans look for a score in the low 600s or higher, while government-backed loans can be more flexible. Your lender can tell you exactly where you stand and what would move your rate. Curious where rates have been historically? I track them in my mortgage rate history since 1971.

Step 3: Save for the down payment and cash to close

One of the most stubborn myths in real estate is that you need twenty percent down. You often do not.

• Conventional loans can go as low as three percent down for qualified buyers.
• FHA loans typically start at three and a half percent down and are popular with first-time buyers.
• VA loans (for eligible veterans and service members) and USDA loans (in eligible areas) can allow zero down.
• Twenty percent down lets you skip mortgage insurance and lowers your payment, so it is still a great target if you can reach it.

Beyond the down payment, budget for closing costs, which for buyers often run in the range of two to five percent of the price, and for cash reserves that lenders like to see after closing. Down payment gifts from family are allowed on most loan types with the right paperwork, and California offers down payment assistance programs for buyers who qualify. Ask me and your lender which programs fit your situation.

Step 4: Get pre-approved (not just pre-qualified)

These two words sound alike but mean very different things.

• A pre-qualification is a quick, informal estimate based on what you tell the lender. It is a starting point.
• A pre-approval means the lender has actually verified your income, assets, and credit and issued a letter for a specific loan amount. This is what sellers take seriously.

In a competitive market, a strong pre-approval is your ticket to the table. Get it before you tour, not after you fall in love with a home.

Documents your lender will usually ask for:

• Recent pay stubs (often the last 30 days).
• W-2s and tax returns (often the last two years).
• Bank and investment statements (often the last two to three months).
• Photo identification.
• If self-employed, profit and loss statements and business returns.

Lenders weigh your debt-to-income ratio, your credit, your down payment, and the stability of your income. Once you are under contract you will choose a loan and may lock your interest rate for a set period to protect against rate movement. I am happy to introduce you to trusted local lenders who close on time.

Step 5: Choose your agent and sign a buyer agreement

Your agent is your advocate. A good buyer agent finds the right homes, runs the numbers, spots problems, negotiates hard for you, and quarterbacks the dozens of deadlines between offer and close.

In California you will typically sign a buyer representation agreement that spells out how your agent is paid and what they owe you. Make sure you understand who represents whom. If one agent tries to represent both you and the seller, that is dual agency, and it changes what they can do for you, I explain the trade-offs in what it means to have a dual agent. You can learn more about how I work on my about page.

Step 6: Define your must-haves and start the search

Make two lists: your must-haves (the things you will not compromise on) and your nice-to-haves (the bonuses). Think about location, commute, the number of bedrooms and bathrooms, single story versus two story, yard, parking, and whether you want move-in ready or a project.

Then put the search tools to work:

• Browse current listings on HarvRealtor.com and search active homes by city: Fremont, Newark, and Hayward.
• Study local conditions in my reports by cities and market reports so you know whether you are in a buyer or seller market.
• Bookmark my real estate tools hub for the Bay Area for calculators and resources.
• Exploring the wider region? My East Bay and South Bay city guide breaks down the local cities and lets you view the latest listings in each area.

Set up a saved search so new listings come to you the moment they hit the market. In a fast market, being early matters.

Step 7: Tour homes like a pro

Photos sell the dream, but a walkthrough tells the truth. When you tour, look past the staging:

• Check water pressure, run faucets, and look under sinks for leaks or stains.
• Open and close windows and doors, and note the age and condition of the roof, furnace, water heater, and electrical panel.
• Watch for cracks, sloping floors, moisture smells, and fresh paint that may be hiding something.
• Step outside and study drainage, the foundation, and how the home sits on the lot.
• Test the commute at the time of day you would actually drive it, and look into schools and amenities that matter to you.

Take photos and notes at every home, after three or four they blur together. I will point out both the highlights and the red flags so your excitement never outruns the facts.

Step 8: Make a strong offer

When you find the one, we move quickly and deliberately. I prepare a comparative market analysis of recent nearby sales so your price is grounded in data, not guesswork. A complete offer is more than a number, it includes:

• Purchase price and your loan and down payment structure.
• Earnest money deposit, a good-faith deposit that shows you are serious, often around one to three percent of the price in our area.
• Contingencies, your built-in exit ramps. The common ones are the inspection (you can investigate the home), the appraisal (the home must value out for your loan), and the loan (your financing must come through).
• Proposed timelines for those contingencies and for closing.
• Your pre-approval letter and proof of funds.

In a competitive situation, we have strategies to make your offer stand out, from your deposit and timelines to a thoughtful cover letter and clean terms. Strong does not have to mean reckless. I will never let you waive a protection without making sure you understand the risk first.

Step 9: Open escrow and deposit earnest money

Once the seller accepts and both sides sign, you are in contract and we open escrow. Escrow is a neutral third party that holds your earnest money and all the documents, and only releases funds when every condition of the contract has been met. This protects both you and the seller.

You will deposit your earnest money (usually within a few days), and the clock starts on your contingency periods. From here, the deal runs on deadlines, and meeting them is how we keep your deposit safe and your purchase on track.

Step 10: Inspections and disclosures (due diligence)

This is the heart of the process and where having an experienced agent pays for itself. You now investigate the home thoroughly while reviewing what the seller is legally required to tell you.

Inspections to consider

• General home inspection, a top-to-bottom look at the structure and systems.
• Pest or termite inspection for wood-destroying organisms and dry rot.
• Specialty inspections when warranted, such as roof, sewer lateral, foundation, chimney, pool, or HVAC.

California disclosures you will read

California sellers must disclose a great deal about the property. Expect documents such as the Transfer Disclosure Statement, the Seller Property Questionnaire, a Natural Hazard Disclosure report (flood, fire, and earthquake zones), and, where applicable, HOA documents and any local point-of-sale requirements. Read every page, this is the seller telling you what they know.

Step 11: Appraisal and loan underwriting

While you investigate the home, your lender works on the loan. Two big things happen here.

The appraisal: your lender orders a licensed appraiser to confirm the home is worth what you agreed to pay. If it appraises at or above the price, great. If it comes in low, we have choices: renegotiate, cover part of the gap if you are able, or use your appraisal contingency.

Underwriting: the lender does a final, detailed review of your file and may ask for updated documents or letters of explanation. Respond fast, every day counts. And during escrow, protect your approval by following a few rules.

Until you close, do not:

• Open new credit cards or finance a car, furniture, or appliances.
• Make large purchases or move big sums of money between accounts.
• Change jobs or income structure if you can avoid it.
• Co-sign a loan for anyone.

Any of these can change your numbers and put your loan at risk right before the finish line.

Step 12: Remove your contingencies

When you are satisfied with the inspections, the disclosures, the appraisal, and your loan, you remove your contingencies in writing. This is the moment you fully commit. After this point your earnest money is generally at risk if you back out for a reason that is not protected, so we never remove a contingency until you are genuinely comfortable. In some competitive deals buyers shorten or waive certain contingencies up front, and I will always walk you through exactly what that means for your deposit before you agree to it.

Step 13: The final walkthrough

Shortly before closing, we do a final walkthrough, usually within a few days of signing. This is your chance to confirm that:

• The home is in the condition you agreed to.
• Any repairs the seller promised were actually completed.
• Nothing has been damaged during the move-out, and anything included in the sale is still there.
• Systems and appliances that were working still work.

If something is off, we address it before you sign, not after.

Step 14: Closing day, funding, and the keys

This is the day it all comes together. Here is the sequence:

1. Sign your loan documents with a notary, including the note and the deed of trust. Review your final closing statement so you know every figure.
2. Wire your down payment and closing costs to escrow, or bring a cashier check, per their instructions.
3. Your loan funds, the lender sends the money to escrow.
4. The sale records with the county, this is the legal moment ownership transfers to you.
5. You get the keys. Congratulations, you are a homeowner.

After you get the keys: your move-in checklist

The deal is done, but a few important tasks remain. Take care of these in your first weeks:

• Change the locks and garage codes, you do not know who still has a key.
• Set up utilities in your name: electricity and gas, water and sewer, trash, internet, and any others.
• Confirm your homeowners insurance is active as of the closing date.
• File for the California homeowners exemption with the county assessor, it can reduce the taxable value of your primary residence.
• Watch for your supplemental property tax bill. After a purchase, California reassesses the home and sends a one-time supplemental bill on top of the regular tax bill. It can arrive months later, so set the money aside now.
• Update your address with the post office, your bank, your employer, the DMV, and voter registration.
• Locate the main shutoffs for water, gas, and electrical, and test smoke and carbon monoxide detectors.
• Keep every closing document in a safe place. You will want the closing statement and records of improvements for future taxes and for when you eventually sell.
• Start a maintenance calendar so small upkeep never turns into big repairs.

What a buyer actually pays

Here is a simple way to picture the money, split into what you pay up front and what you pay every month. The figures below are general ranges to plan around, your actual numbers depend on the price, your loan, and the property. Always confirm specifics with your lender and escrow.

Up-front costs	What it is
Down payment	Often zero to twenty percent of the price, depending on your loan.
Closing costs	Often about two to five percent of the price: loan fees, title, escrow, and prepaids.
Earnest money	A good-faith deposit, often one to three percent, credited back to you at closing.
Inspections	Paid during escrow, the cost depends on the home and which inspections you order.

Monthly costs	What it is
Principal and interest	Your core mortgage payment.
Property taxes	Generally near one percent of assessed value plus local assessments, often paid through escrow.
Insurance	Homeowners insurance, and PMI if you put less than twenty percent down.
HOA dues	Only if the property is a condo or in a planned community.

Common mistakes to avoid

• Shopping before you are pre-approved. You lose time and leverage, and you may fall for a home you cannot finance.
• Forgetting closing costs and reserves. The down payment is not the whole bill.
• Making big purchases during escrow. A new car can cost you the house.
• Skipping inspections to win a bid. Sometimes a calculated move, but never without understanding the risk.
• Reading disclosures too quickly. The answers are usually right there in the paperwork.
• Trusting wiring instructions from an email. Always verify by phone.
• Letting emotion set the price. Fall in love with the home, negotiate with the data.

Frequently asked questions

How much do I really need for a down payment?

Less than most people think. Depending on the loan, qualified buyers can put down as little as zero to three and a half percent, though twenty percent lets you avoid mortgage insurance. California also offers down payment assistance for buyers who qualify.

What is the difference between pre-qualified and pre-approved?

Pre-qualification is a quick estimate based on what you tell the lender. Pre-approval means the lender verified your documents and committed to a specific amount. Sellers take pre-approval far more seriously.

How long does it take to buy a home?

Once your offer is accepted, a financed purchase in our market often closes in about three to five weeks. The shopping phase before that varies widely depending on inventory and your criteria.

What are contingencies, and should I waive them?

Contingencies are your protections, the main ones cover inspections, appraisal, and your loan. Waiving them can make an offer more competitive but increases your risk. Never waive one without understanding exactly what it means for your deposit, which I will always explain first.

Do I pay my agent as a buyer?

How buyer agents are compensated is spelled out in your buyer representation agreement, and the structure can vary by transaction. We will go over it clearly and in writing before you commit to anything.

What credit score do I need?

It depends on the loan program. Many conventional loans look for a score in the low 600s or higher, and some government-backed loans are more flexible. Your lender can tell you where you stand and how to improve your rate.

Ready to start?

The best first step costs you nothing: a conversation. Tell me where you are in the journey, whether you are just curious about your numbers or ready to tour this weekend, and I will build a plan around your goals. I represent buyers across Fremont, Union City, Newark, Hayward, and the greater East Bay, and I would be honored to represent you.

Want to keep learning first? Browse the real estate wisdom articles, check current listings, explore the cities in my East Bay and South Bay city guide, or dig into the Bay Area tools hub. Thinking of selling a home too? See the home seller guide.

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Equal Housing Opportunity. I serve every client with fairness and respect, and I follow all federal and California fair housing laws. Discrimination in housing is illegal, and I am proud to support equal access for all, see my takeaways from Fair Housing Day.

Disclaimer: This guide is general education, not legal, tax, lending, or financial advice. Loan programs, rates, percentages, taxes, fees, and timelines change and vary by buyer and property. Always confirm specifics with your lender, escrow and title company, tax advisor, and your real estate agent before making decisions. All information is deemed reliable but is not guaranteed.