First-time buyer checklist, Sacramento edition.
Buying your first home is calmer with a clear list. Here are the documents, timeline, and local costs to expect in the Sacramento area.
Stage one: before you shop
The calmest purchases start a month before the first open house. This is a chance to get comfortable with your budget before you start looking.
- Check your credit reports at the official free site, annualcreditreport.com, and dispute anything that is wrong. Give disputes time to resolve before a lender pulls your file.
- Work out your honest monthly number using the math in our affordability guide. Include taxes, insurance, and room for the house itself: a little room for maintenance helps you settle in more comfortably.
- Count your cash in three piles: down payment, closing costs, and a reserve you do not touch. Lenders like reserves, and so will you the first time a water heater quits.
- Talk through big changes. A new loan, a job change, or a large deposit can affect a loan review. Ask your lender how a planned change could affect your application.
- Gather the document set listed in the next section, in one folder, before anyone asks. Having a folder ready can make later requests easier to manage.
Documents to have ready
Every lender asks for roughly the same proof. Two years of federal tax returns with all schedules. W-2s for the same two years. Pay stubs covering the most recent month. Bank statements for the last two to three months, all pages, because lenders trace where the down payment came from. A photo ID. If you are self-employed, expect two years of business returns and possibly a letter from your tax preparer confirming the business is active. If part of your down payment is a gift from family, expect a short gift letter stating the money is a gift, not a loan. These documents help a lender understand and verify your application. Ask for a checklist and a secure way to share them.
Stage two: pre-approval and house hunting
A pre-approval means a lender has reviewed your documents and credit and stated, in writing, an amount they are prepared to lend subject to the property checking out. It is stronger than a pre-qualification, which is often just a conversation and a credit pull. A pre-approval can help you understand your options and prepare to make an offer. Shop within that number, not above it, and remember our region's practical realities: summer competition in family neighborhoods near good schools, from Citrus Heights to Folsom, can be brisk. Your real estate agent can help you put together an offer that fits the home and your circumstances.
Stage three: offer, escrow, and the 30 to 45 days after
- Offer accepted: your earnest money deposit, commonly 1 to 3 percent of the price in California, goes to the escrow company within a few business days. It is credited to you at closing.
- Inspections: a general home inspection, plus pest and roof inspections are common in our area. Budget a few hundred dollars each. Older homes in established neighborhoods deserve the sewer line conversation too.
- Appraisal: your lender orders an independent valuation. If it comes in below the price, you and the seller renegotiate, you cover a gap you agreed to, or contingencies decide what happens next.
- Underwriting: the lender verifies everything, sometimes twice. Expect a few rounds of "one more document" requests. They are normal, not a bad sign.
- Closing Disclosure: arrives at least three business days before signing. Compare it with your Loan Estimate using the three change rules in our closing costs guide.
- Signing and recording: you sign the loan documents, funds move, the county records the deed, and then, finally, keys.
Local considerations by area
Different Sacramento-area cities have unique factors to consider. Learn more about your specific area:
- Citrus Heights, CA - Sacramento County, mix of established homes and newer developments
- Roseville, CA - Placer County, many newer communities with potential Mello-Roos assessments
Sacramento-area costs and habits that surprise people
A few local notes worth knowing early. Property taxes here run around 1.1 to 1.3 percent of the price per year once you add the direct assessments common in newer communities, and some newer areas carry Mello-Roos districts that add meaningfully to the monthly total. Ask about Mello-Roos early so you can consider the full cost of a home you like. Transfer tax in Sacramento County is traditionally paid by the seller by custom, but custom is negotiable, so it belongs in the written contract. Title and escrow fees are commonly split between buyer and seller locally. A pest inspection is also worth discussing with your agent, especially when considering an older home.
Frequently asked questions
How long does the whole process take?
Escrow itself is typically 30 to 45 days after an accepted offer. The full journey, documents to keys, often runs two to four months for first-time buyers, mostly because finding the right home takes the time it takes. It’s okay to give yourself time to find a home that fits.
What documents will I need?
Two years of tax returns and W-2s, a month of pay stubs, two to three months of bank statements, photo ID, and gift letters if family is helping with the down payment. Self-employed buyers add business returns. Gathering these before you shop is the single easiest way to make the process calmer.
What is earnest money?
A good-faith deposit into escrow, commonly 1 to 3 percent of the price in California, credited toward your down payment and costs at closing. It shows the seller you are serious and is held by the escrow company. Whether it is refundable depends on your contract contingencies and deadlines.
Have a question as you read? You can call or text me at (408) 406-7900.