Buying a Home in Los Angeles

Plan for the down payment (as little as 3 to 5 percent on conventional loans, 3.5 percent FHA, 0 percent VA, though 10 to 20 percent is common in competitive price ranges), closing costs of roughly 2 to 3 percent of price, reserves the lender wants to see, and a cushion for immediate repairs and moving. The down payment is the headline number; the reserves and closing costs are what catch first-time buyers off guard.

Pre-qualification is an estimate based on what you tell a lender. Pre-approval means the lender has verified income, assets and credit and issued a conditional commitment. In Los Angeles multiple-offer situations, sellers only take pre-approved buyers seriously, and a fully underwritten pre-approval is stronger still.

Price is the biggest lever, but terms win ties: a larger earnest money deposit, shorter or removed contingencies where it is safe, an appraisal gap commitment, flexibility on the seller's closing or rent-back timeline, and a clean, complete offer package with proof of funds. A buyer's agent who talks to the listing agent before writing learns what the seller actually values.

Escrow is the neutral third party that holds the buyer's deposit and funds, collects documents from both sides, follows the purchase agreement's instructions, and records the deed when every condition is met. In Southern California escrow companies, not attorneys, run closings. Escrow fees are typically split between buyer and seller.

Condos offer a lower entry price and less maintenance but carry HOA dues, rules, special assessment risk and slower appreciation in most Los Angeles submarkets. Single-family homes cost more up front, demand maintenance, and historically appreciate faster, with land value and ADU potential as upside. Read the HOA budget, reserves and litigation history before buying any condo.

Check the geology report and any history of slope movement, retaining wall condition and permits, fire hazard severity zone status and insurance availability, street access and parking, sewer versus septic, and whether additions were permitted under the Baseline Hillside Ordinance. Budget for higher insurance and maintenance. Views carry real value, so confirm what can be built on neighboring lots.

Yes, and you inherit the lease and the rent. If the unit is covered by the Los Angeles Rent Stabilization Ordinance, rent increases are capped and eviction requires just cause, with owner move-in rules and relocation payments. Verify the rent roll, the registration status with LAHD and any pending complaints before removing contingencies.