County of Los Angeles Department of Consumer Affairs Information Sheet

Buying a Home

There are many advantages to owning a home, such as tax savings and building home equity. There are disadvantages too.  A monthly mortgage payment is usually higher than rent and you will be responsible for home maintenance and repairs.

When shopping for a home, consider the price you can afford to pay.  Also, consider the size and type of home that will meet your current and future family needs.  The distance to work, schools, hospitals and shopping facilities is important too.

What can I afford?

When buying a home, consider costs such as moving expenses, home repairs, taxes, insurance, and utilities. The Department of Housing & Urban Development has lots of information for homebuyers and worksheets to help you find out how much you can afford.   Visit them at: www.hud.gov.

To attend a free class for first-time homebuyers, contact the Los Angeles County Community Development Commission.  Call (323) 890-7190, or visit them online at  www.lacdc.org.

How do I find a home?

Contact a licensed real estate agent. They can help you find a home. You can check the agent’s license and complaint status by contacting the State Department of Real Estate at (213) 620-2072 or www.dre.ca.gov.

Drive around areas where you would like to live.  Look for “Open House” and “For Sale” signs.
Check your newspaper’s real estate section.

Getting a home loan

Banks, mortgage companies and credit unions are the most common lenders. Here are some tips for finding a loan:

• Contact three or more lenders. Look for a loan with the lowest interest rate, points and fees. 
• Be sure the lender is licensed and in good standing.  Call the Department of Corporations (866) 275-2677.
• Mortgage loan brokers work with many lenders to help you find a loan.  Check that they are licensed with the Department of Real Estate (213) 620-2072.

Making an offer

• When you find the home you want to buy and decide how much you want to pay for it, you are ready to make an offer. Your offer and a deposit are given to the seller on a form called, Purchase Agreement. The purchase agreement lists the amount you are offering to pay, the amount of your deposit, and the date the sale will be completed, which is usually 30 to 90 days.

Opening escrow

If your offer is accepted, the seller will open escrow.  The escrow company is a neutral party.  They hold your deposit money and title to the property until you and the seller agree to release them. (See Escrow.)

Changing your mind

Be sure you want to buy the home before you make an offer.  If you change your mind after the seller accepts your offer, you may lose the money you’ve deposited into escrow.

Before the sale is complete

• Inspect the property  Hire a professional home inspection service.  Make sure the water, power and gas are on before the home inspection.  Also, contact the local Building & Safety office to make sure any room additions have building permits.


• Read the disclosure statements Ask your real estate agent for all disclosure statements that tell you the condition of the home.


• Do a final walkthrough  Be sure the seller has made all promised repairs. Check that appliances and fixtures being sold with the home are there.

Contact us for more information or speak with one of our counselors at (800) 973-3370.  If you live outside of Southern California, call us at (213) 974-1450.

Updated Sept. 24, 2008

For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within LA County)
web site: dca.lacounty.gov