Ah, Los Angeles. The City of Angels, where countless dreams and cultures mix and blend into an enormous melting pot of diversity. If your dream home rests amidst the glitz and glamour of Hollywood, or even in the thick of the California tech sector, then never fear. Our guide of home buying tips will show you what you can do to improve your chances when buying a home in the competitive LA real estate market.

Recognize This Right Off the Bat: Homes in LA Are Expensive

The first thing you’ll realize once you even start to browse for homes in Los Angeles is that they are expensive. The real estate market in LA is one of the most competitive in the country, and this, combined with the allure of the city itself, drives prices up. Even the best realtor around might struggle to get prices below a million dollars for a piece of property.

Have At Least 20% Down

Every financial article about buying a home talks about having a 20% down payment. With good reason, as it’s one of the best home buying tips out there. While you can try to go as low as 10% for a down payment, anyone with a larger amount that they can pay can potentially outbid you.

What Options Does a First-Time Buyer Have?

A first-time homebuyer that may not have 20% of $600,000 to set aside may wonder what other options they have. One option is the Federal Housing Authority loan, which is designed to help first-time buyers. If you struggle with low income, Home Possible Mortgages can help you make up the difference.

In addition, Los Angeles itself has some programs to help a first-time buyer. The California First Mortgage program and LA County’s own First Home Mortgage Program can assist in this regard.

Take Steps to Improve Your Credit Score

Naturally, when buying a home, you want to cut down your monthly payments as much as possible. One way to do this, especially if you can’t afford a hefty down payment, is to improve your credit score as much as possible. Reduce and eliminate as much debt as you can, so that you can get a better rate on your mortgage.

Prepare for a Bidding War

As we mentioned above, real estate in Los Angeles is a competitive affair. Cash buyers seem to lurk around every corner. So, make sure you have enough set aside to pencil in your name on your dream home and a few back-ups, just in case one or more of them fall through.

Let’s Review Our Home Buying Tips

Buying a home in Los Angeles can be a stressful affair. However, if you go in prepared for competition and high prices, you can avoid the sticker shock.

Did you find our home buying tips helpful? Would you like to read more articles like this one? If so, then check out the Real Estate section of our blog for more financial aid, tips, and tricks to bring your money management to the next level.

Jane