By Tami Fuller
Most buyers come to the table with a short list of questions — how much can I afford, what neighborhoods should I look at, how long does this take? Those are the right questions to start with. But in my experience working with buyers across San Diego, it's the questions people didn't know to ask that tend to matter most. Here are the ones I find myself answering again and again — and that I wish every buyer asked before we got started.
Key Takeaways
- Pre-approval and pre-qualification are not the same thing — one carries real weight, the other doesn't
- The purchase price is not your only cost; closing costs, property taxes, and ongoing carrying costs add up fast in San Diego
- Contingencies are protections, not obstacles — understand what each one does before agreeing to waive anything
- San Diego's market has shifted meaningfully in buyers' favor; knowing this changes your negotiating approach
Is Pre-Qualification the Same as Pre-Approval?
No, and the difference matters more than most buyers realize. A pre-qualification is a rough estimate of what you might be able to borrow, based on self-reported financial information. A pre-approval is a verified assessment — the lender has actually reviewed your income, assets, credit, and debt load and issued a conditional commitment to lend.
In San Diego's market, sellers and their agents take pre-approvals seriously and treat pre-qualifications with skepticism. Coming in with a strong pre-approval from a lender who knows the local market signals that you're a serious buyer — and it puts you in a much stronger position at the negotiating table.
In San Diego's market, sellers and their agents take pre-approvals seriously and treat pre-qualifications with skepticism. Coming in with a strong pre-approval from a lender who knows the local market signals that you're a serious buyer — and it puts you in a much stronger position at the negotiating table.
What Costs Should I Budget for Beyond the Purchase Price?
This is the question buyers most often wish they had asked earlier. The purchase price is just the beginning. Closing costs in California typically run between 2 and 3 percent of the purchase price, and on a San Diego home at the median price, that's a meaningful number. Beyond closing, there are ongoing carrying costs that affect your monthly budget from day one.
Costs to account for before you fall in love with a property:
- Closing costs — loan origination fees, appraisal, title insurance, escrow fees, and prepaid items like homeowner's insurance and property tax impounds
- Property taxes — California's base rate is 1 percent of assessed value, but Mello-Roos taxes and other special assessments in newer San Diego communities can add significantly to that
- HOA fees — a large portion of San Diego's housing stock carries HOA fees; in condo buildings and many planned communities, these are a real monthly line item
- Homeowner's insurance — California's insurance market has tightened; get a quote before you make an offer, not after
Do I Need 20% Down to Buy in San Diego?
No. The 20 percent down payment is a persistent myth that keeps many qualified buyers on the sidelines longer than necessary. Conventional loans are available with as little as 3 percent down, and FHA loans allow 3.5 percent down for buyers with qualifying credit scores. VA loans, available to eligible military members and veterans, require no down payment at all.
San Diego also has assistance programs worth knowing about. The San Diego Housing Commission offers down payment assistance for income-eligible first-time buyers, including deferred-payment loan programs and closing cost assistance grants. These programs have specific eligibility requirements, but they're underutilized by buyers who simply don't know they exist.
The tradeoff for smaller down payments is private mortgage insurance — an additional monthly cost that protects the lender if you default. It drops off once you reach 20 percent equity, and for many buyers, it's worth paying in order to get into a home sooner rather than waiting years to save a larger down payment.
San Diego also has assistance programs worth knowing about. The San Diego Housing Commission offers down payment assistance for income-eligible first-time buyers, including deferred-payment loan programs and closing cost assistance grants. These programs have specific eligibility requirements, but they're underutilized by buyers who simply don't know they exist.
The tradeoff for smaller down payments is private mortgage insurance — an additional monthly cost that protects the lender if you default. It drops off once you reach 20 percent equity, and for many buyers, it's worth paying in order to get into a home sooner rather than waiting years to save a larger down payment.
What's the Difference Between a Contingency and a Condition?
A contingency is a clause in your purchase contract that gives you the right to back out — or renegotiate — if a specific condition isn't met. The most common contingencies are the inspection contingency, the financing contingency, and the appraisal contingency.
Each one protects you in a different way. The inspection contingency gives you the ability to exit or negotiate repairs if the home inspection surfaces material issues. The financing contingency protects you if your loan doesn't come through. The appraisal contingency protects you if the home appraises below the agreed purchase price.
In a competitive market, sellers sometimes push buyers to waive contingencies in order to make offers more attractive. In San Diego's current environment — where inventory has grown and buyers have more negotiating leverage than they've had in several years — you typically don't need to waive contingencies to be competitive. Understanding what each one protects is essential before you decide whether to include or remove any of them.
Each one protects you in a different way. The inspection contingency gives you the ability to exit or negotiate repairs if the home inspection surfaces material issues. The financing contingency protects you if your loan doesn't come through. The appraisal contingency protects you if the home appraises below the agreed purchase price.
In a competitive market, sellers sometimes push buyers to waive contingencies in order to make offers more attractive. In San Diego's current environment — where inventory has grown and buyers have more negotiating leverage than they've had in several years — you typically don't need to waive contingencies to be competitive. Understanding what each one protects is essential before you decide whether to include or remove any of them.
How Long Does the Buying Process Actually Take?
From the time you start seriously looking to the time you have keys in hand, most San Diego buyers should expect somewhere between 60 and 90 days — sometimes faster, sometimes longer depending on loan type, property type, and how quickly you find the right home.
The escrow period itself, from accepted offer to close, is typically 30 days for conventional financing, though 21-day or even faster closes are possible with strong preparation. VA and FHA loans sometimes take slightly longer due to additional appraisal requirements.
The buyers who move through the process most smoothly are the ones who get fully pre-approved before they start touring, have their documentation ready, and stay in close communication with their agent and lender throughout.
The escrow period itself, from accepted offer to close, is typically 30 days for conventional financing, though 21-day or even faster closes are possible with strong preparation. VA and FHA loans sometimes take slightly longer due to additional appraisal requirements.
The buyers who move through the process most smoothly are the ones who get fully pre-approved before they start touring, have their documentation ready, and stay in close communication with their agent and lender throughout.
FAQs
Should I sell my current home before buying in San Diego?
It depends on your financial situation and risk tolerance. Selling first gives you a clear picture of your buying budget and removes the complexity of coordinating two transactions — but it may also leave you without a place to live between closing dates. Buying first gives you continuity but requires carrying two mortgages temporarily. There are bridge loan options and contingent offer strategies that can help navigate this — it's worth a direct conversation about your specific situation.
What happens if the inspection finds problems?
You have options. With an inspection contingency in place, you can request that the seller make repairs, ask for a price reduction, request a credit at closing to cover the cost of repairs yourself, or walk away entirely. In San Diego's current market, sellers are negotiating more than they were a few years ago — a reasonable request backed by an inspection report is often met with a response.
Is it a good time to buy in San Diego?
San Diego's market has shifted into a more balanced environment. Inventory has increased, homes are taking longer to sell, and buyers are successfully negotiating in ways that weren't possible during the peak years. For buyers who are financially prepared and have done their research, this is a meaningfully better environment than what existed just two or three years ago.
Let's Talk Through Your Questions
The questions you ask before you start matter as much as the ones you ask during the process. I work with buyers across San Diego — from first-time purchases to move-up buyers navigating more complex situations — and I'm happy to walk through your specific circumstances before you take a single step.
Reach out to me, Tami Fuller, and let's start the conversation.
Reach out to me, Tami Fuller, and let's start the conversation.
