The Ultimate First-Time Homebuyer Guide for San Diego (2025)

Buying your first home in San Diego is an exciting milestone—but with high home prices, competitive bidding, and complex mortgage options, the process can feel overwhelming.

This step-by-step guide will walk you through everything you need to know about buying your first home in San Diego, from saving for a down payment to closing on your dream home.

🏡 Step 1: Understand the San Diego Housing Market

Before you start house hunting, it’s important to know what to expect in San Diego’s competitive market.

📊 San Diego Housing Market (2025):
✔ Median home price: $940,000+
✔ Average condo price: $625,000+
✔ Typical down payment: 10-20% (but some programs allow 3-5%)
✔ Average days on market: 21 days (homes sell fast!)

Key Takeaways:

• Home prices continue to rise, making it smart to buy sooner rather than later.
• Competition is high, so be prepared to act fast when you find the right home.
• First-time buyer programs can help make homeownership more affordable (more on that below).

💰 Step 2: Save for Your Down Payment & Closing Costs

How Much Do You Need for a Down Payment?

✔ Conventional Loan: 5-20% down (ideal for long-term savings)
✔ FHA Loan: 3.5% down (great for lower credit scores)
✔ VA Loan: 0% down (for eligible military & veterans)
✔ Down Payment Assistance: Grants & programs can reduce upfront costs

💡 Example:

• $750,000 home with 10% down = $75,000 down payment
• $600,000 home with 5% down = $30,000 down payment

Don’t Forget Closing Costs!

Closing costs in San Diego typically range from 2-3% of the home price.

💡 Example:

• On a $700,000 home, closing costs = $14,000 - $21,000

Ways to Reduce Upfront Costs:
✔ Ask the seller for closing cost credits
✔ Use a first-time homebuyer program (details below)
✔ Negotiate lender incentives

🏦 Step 3: Get Pre-Approved for a Mortgage

Before you start home shopping, you need a mortgage pre-approval.

Why Pre-Approval is Important:

✔ Shows sellers you’re serious (many won’t accept offers without it)
✔ Helps you know your budget before looking at homes
✔ Speeds up the closing process once you find a home

What You Need for Pre-Approval:

✔ Proof of income (pay stubs, tax returns)
✔ Employment verification
✔ Credit score (aim for 620+ for conventional loans)
✔ Debt-to-income ratio (keep it under 45%)

💡 Pro Tip: Get quotes from at least 3 lenders to find the best interest rate.

🔍 Step 4: Find the Right Home in the Right Neighborhood

San Diego has a variety of neighborhoods to fit different lifestyles and budgets.

Best San Diego Neighborhoods for First-Time Buyers

💡 Pro Tip: Work with a local real estate agent (like us!) to find hidden gems & negotiate the best deal.

💼 Step 5: Take Advantage of First-Time Homebuyer Programs

San Diego offers several programs to help first-time buyers with down payments and closing costs.

Top First-Time Homebuyer Programs in San Diego (2025):

✔ CalHFA (California Housing Finance Agency) – Offers low-interest loans & down payment assistance.
✔ San Diego Housing Commission (SDHC) First-Time Buyer Program – Provides grants & low-interest loans.
✔ VA Loans (for Military Buyers) – Zero down payment & no mortgage insurance.
✔ FHA Loans – Only 3.5% down payment required.

💡 How to Qualify:

• Must be a first-time homebuyer (haven’t owned a home in 3+ years)
• Meet income & credit score requirements
• Take a homebuyer education course (some programs require it)

Pro Tip: Ask us about how to qualify & apply for these programs!

📑 Step 6: Make an Offer & Negotiate Like a Pro

Once you find your dream home, it’s time to make an offer.

How to Make a Winning Offer in San Diego’s Hot Market:

✔ Get pre-approved before making an offer (sellers take you more seriously).
✔ Be ready to move fast—homes in San Diego sell quickly!
✔ Offer a competitive price (your agent will help you determine the right offer).
✔ Include an earnest money deposit (1-3% of purchase price) to show commitment.
✔ Consider writing a personal letter to the seller (this works in competitive situations).

💡 Pro Tip: In a bidding war, offering a shorter escrow period or waiving minor contingencies can make your offer stand out.

🔑 Step 7: Closing on Your First Home

Once your offer is accepted, you’re almost there! Here’s what happens next:

✔ Home Inspection: Protects you from buying a home with hidden issues.
✔ Appraisal: Confirms the home’s value for your lender.
✔ Final Mortgage Approval: Your lender will verify final loan details.
✔ Final Walkthrough: Ensure the home is in the agreed-upon condition.
✔ Closing Day: Sign the final paperwork and get the keys to your new home! 🎉

💡 Pro Tip: Bring a valid ID and cashier’s check (or wire transfer) for closing costs on closing day.

🎉 Ready to Buy Your First Home in San Diego? Let’s Make It Happen!

Buying your first home doesn’t have to be stressful—especially when you have the right team guiding you.

📩 Thinking about buying in San Diego? Let’s talk! Contact Trupp Real Estate Group for:
✔ Access to the best first-time buyer programs
✔ Exclusive off-market listings
✔ Expert guidance through every step of the process

📞 Call/Text: 801-647-7292 | 🏡 Visit Our Website

Let’s turn your homeownership dreams into reality! 🏡🔑