Preparing to Buy
Before you start shopping for your property, it is a good idea to make some preparations.
Build Your Green File.
A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:
- Financial statements
- Bank accounts
- Investments
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Check Your Credit Rating.
Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution so that we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Buyers guide FAQs – Los Angeles
The first step is to review your finances, talk with a local LA‑area lender, and get pre‑approved so you know what price range and neighborhoods are realistic for your budget.
From accepted offer to closing, most LA home purchases take about 30–45 days, depending on your financing, inspections, appraisal, and how quickly everyone signs and returns documents.
Yes, a dedicated LA buyer’s agent tracks new CRMLS listings, analyzes value, writes competitive offers, negotiates terms, and guides you through disclosures, inspections, and closing.
Many LA buyers put 10–20% down, but some conventional and FHA loans allow as little as about 3% down if you qualify, while jumbo or higher‑priced homes may require larger down payments.
LA buyers typically pay closing costs of roughly 2–4% of the purchase price, including lender fees, title and escrow services, appraisal, recording charges, and prepaid property taxes and homeowners insurance.
Yes, a professional home inspection is strongly recommended to uncover structural, safety, or systems issues that may not be visible during showings and could affect your decisions or negotiations.
Yes, many lenders and programs in California and LA support first‑time buyers, and approval will depend on your credit profile, income, debts, and any down‑payment assistance you qualify for.
Yes, self‑employed buyers purchase in LA all the time, but lenders usually review at least two years of tax returns, business income, and bank statements to document stable income.
Many lenders prefer your total housing payment to stay around one‑third of your gross monthly income or less, even in a higher‑cost market like LA.