First-Time Buyers

First-Time Home Buyer Guide
for San Diego (2025)

Step-by-step: from credit check to closing day — everything a first-time buyer needs to know in San Diego County

Buying your first home in San Diego is one of the biggest financial decisions you'll ever make. The market is competitive, prices are high, and the process can feel overwhelming. But it doesn't have to be. This guide walks you through every step in plain English.

Step-by-Step: How to Buy Your First Home in San Diego

1

Check Your Credit Score

Your credit score determines what loans you qualify for and what interest rate you'll get. For an FHA loan (most popular for first-time buyers) you need at least 580. For a VA loan (if you're a veteran) most lenders look for 580+. Pull your free report at AnnualCreditReport.com and dispute any errors before you apply.

2

Figure Out Your Budget

Use our free mortgage calculator at sandiegohomebuyers.org to estimate your monthly payment. As a rule of thumb, your total housing payment (mortgage, taxes, insurance) should be under 43% of your gross monthly income. In San Diego, most first-time buyers are looking at homes in the $450,000–$750,000 range depending on the neighborhood.

3

Get Pre-Approved (Not Just Pre-Qualified)

A pre-approval letter shows sellers you're a serious buyer with financing lined up. It's different from pre-qualification — pre-approval involves actual verification of your income, assets, and credit. San Diego Home Buyers offers same-day pre-approvals. This is your most important step before looking at homes.

4

Choose the Right Loan

FHA: 3.5% down, 580+ credit score. Best for buyers without VA eligibility and limited savings.
VA: 0% down for veterans and active military. Best loan available if you qualify.
Conventional: Usually requires 5–20% down and 620+ credit. Good for buyers with strong credit and savings.
Down Payment Assistance: San Diego County has programs that can cover your down payment. Ask us about what's available.

5

Find Your Home & Make an Offer

With your pre-approval in hand, you're ready to make competitive offers. In San Diego's market, homes move fast — especially under $600,000. Be ready to move quickly and have your agent submit a strong offer. Your pre-approval letter and earnest money deposit (typically 1–3%) go with every offer.

6

Open Escrow & Get an Inspection

Once your offer is accepted, you'll open escrow (typically 30–45 days in San Diego). Get a home inspection ($400–$600) to identify any issues. You'll also need an appraisal ordered by your lender. This is the time to negotiate repairs or credits if problems are found.

7

Final Walkthrough & Close

Do a final walkthrough 24–48 hours before closing. Then sign your loan documents, wire your closing funds, and get your keys. In California, closing happens when the deed records — usually by end of day. Congratulations, you're a homeowner.

San Diego Tip: In competitive neighborhoods like Chula Vista and El Cajon, having your pre-approval ready before you even start touring homes can be the difference between getting the house and losing it to another buyer.

How Much Do You Need Saved?

Ready to Start? Get Pre-Approved Today.

Our San Diego team helps first-time buyers get pre-approved fast — same day in most cases. We'll walk you through every step and find the right loan for your situation.

Apply Now — It's Free →