Questions & Answers
Home buying and mortgage questions, answered.
Whether you are buying your first home in Pasadena or you have owned in the San Gabriel Valley for years, here are straight, plain-English answers to the questions buyers and homeowners ask most.
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Mortgage rates and pre-approval
What determines the mortgage rate I am offered?
Your credit score, down payment size, loan program, loan term, and the day’s market rates all shape the number you are quoted. Two buyers in the same week can be quoted different rates because those factors differ. Because rates move constantly, the only accurate number for your situation comes from checking with a lender on the day you plan to act.
Should I get pre-approved before I start looking at homes?
Yes, and it is one of the most useful early steps. Pre-approval verifies your income, assets, and credit, and gives you a letter that tells sellers you are a serious buyer. It also sets a realistic budget so you tour homes that truly fit. In a competitive market like the San Gabriel Valley, offers from pre-approved buyers are taken more seriously.
How long does a pre-approval last?
Most pre-approval letters are valid for around 60 to 90 days, though the exact window depends on the lender. If your income or credit changes, or the letter expires, you simply update your information and renew it. Ask your lender for the exact validity date in writing.
How do I know what I can afford?
Start with your monthly payment, not just the list price. Lenders qualify you on income, existing debts, down payment, and credit score, and your payment needs to include property taxes, homeowners insurance, and any HOA dues. A pre-approval turns all of that into a concrete number, so you tour homes that genuinely fit your budget. Alejandro can walk you through the math and connect you with lenders who know the Pasadena and San Gabriel Valley market.
Down payments and programs
How much do I need for a down payment?
It depends on the loan program you choose. Conventional loans typically want a larger down payment, FHA loans accept less, and VA and USDA loans can require no down payment for qualified borrowers. Your exact number also depends on your credit profile and the home’s price, so a quick conversation beats a guess.
What is down payment assistance?
Down payment assistance is a program, often run by states, counties, or cities, that helps qualified buyers cover part of the down payment and closing costs. Some are grants that do not need to be repaid, while others are low-interest second loans. Eligibility rules vary, so it pays to ask what your area offers early in the process.
Do I really need 20 percent down?
No. Twenty percent is a common benchmark that avoids private mortgage insurance, but many buyers put down less. With less than 20 percent down, lenders often add mortgage insurance, which raises the monthly payment. Your lender can show you the trade-off between a smaller down payment and a higher monthly cost.
Buying versus renting
Is it better to buy a home or keep renting?
It depends on your goals, your timeline, and your market. Buying builds equity and fixes a large part of your housing cost, but it also comes with taxes, maintenance, and some price risk. If you plan to stay put for several years and can handle the costs, buying is often the stronger long-term move. A quick conversation about your plans settles it faster than a rule of thumb.
What costs come with buying a home beyond the price?
Beyond the down payment, expect closing costs, property taxes, homeowners insurance, and ongoing maintenance. Many buyers also budget for utilities, repairs, and an emergency fund. Your lender’s loan estimate lays out most of these numbers before you commit, so there are no surprises at the table.
Refinancing
When does refinancing make sense?
Refinancing generally pays off when you can lock in a lower rate, shorten your term, or pull out equity for a real need. Because refinancing comes with closing costs, it makes the most sense when you plan to stay long enough to break even. Your lender can show you the exact math for your loan.
How do I know if refinancing will save me money?
The savings depend on your current rate, the new rate, your loan balance, and how long you stay in the home. A useful way to think about it is how many months it takes for the monthly savings to cover the closing costs. Checking current rates and running the numbers with a lender gives you the honest answer for your situation.
Is now a good time to refinance in California?
That depends on your current rate, the rates being offered today, how long you plan to stay in the home, and the closing costs involved. If you can lock in a lower rate and you will stay long enough for the savings to cover those costs, refinancing can make sense. One California advantage: refinancing your existing loan does not trigger a property tax reassessment under Proposition 13 as long as the ownership stays the same, so the decision comes down to simple math. Alejandro can connect you with lenders to run the real numbers for your loan.
Credit and qualifying
What credit score do I need to buy a home?
There is no single magic number, but lenders weigh your score heavily. Higher scores typically qualify for more programs and better rates, while lower scores may still qualify through programs like FHA. Checking your credit report early and correcting any errors before you apply can improve the rate you get.
What is a debt-to-income ratio, and why does it matter?
It is your monthly debts divided by your gross monthly income, shown as a percentage. Lenders use it to gauge how much house you can safely carry each month. Paying down debts like credit cards before you apply can improve your qualifying number.
Can I buy a home with a less-than-perfect credit history?
Yes, it is often possible, especially through FHA programs designed for buyers with lower scores. Your rate and required down payment may be affected, and recent credit issues will be examined closely. A lender who reviews your actual history can tell you what is realistic for your situation.
The Pasadena and San Gabriel Valley market
Is it a good time to buy a home right now?
That depends less on headlines and more on your personal situation. Prices and rates shift, but time in the market has historically served long-term homeowners well. The honest answer comes from weighing your budget, your plans, and the current local inventory together.
How quickly do homes sell in Pasadena and the San Gabriel Valley?
It varies by neighborhood, price range, and condition. Well-priced homes in good condition can go into contract quickly in desirable areas, while others sit longer. A local agent can tell you what is actually happening on the street you are watching.
How are property taxes computed in California?
Under California’s Proposition 13, your home is reassessed at its purchase price when you buy, and that becomes its assessed value. The base property tax rate is generally around one percent of that assessed value, plus voter-approved local assessments. The assessed value can rise only a small amount each year, so a new buyer’s tax bill usually starts from the purchase price.
Do homes in the San Gabriel Valley hold their value?
Many areas of the San Gabriel Valley have shown steady long-term demand because of strong schools, access to freeways, and proximity to Los Angeles. As with any market, individual neighborhoods and property types vary. Looking at recent sales in the exact area you want gives you the clearest picture.
Why work with an agent who understands financing too?
Having one team that understands both the home search and the loan side saves time and prevents confusion. A local agent knows the streets, the pricing, and the lenders who perform well in your area. That is exactly how Alejandro works, pairing the search with financing guidance in English or Spanish.
How long does buying a home in the San Gabriel Valley take?
The active search usually takes a few weeks to a few months, depending on your budget, your criteria, and how quickly homes in the neighborhoods you want are moving. Once you are in contract, a typical California escrow runs about 30 to 45 days from acceptance to close, with a little extra time if an inspection surfaces items to negotiate. With pre-approval in hand and clear priorities, the whole journey can move faster than most buyers expect.
Selling your home
What does it cost to sell a home in Pasadena?
The biggest line is the agent commission, which is fully negotiable and typically paid out of the seller's proceeds at closing. Beyond that, expect escrow and title fees, transfer taxes, prorated property taxes, and any repairs or buyer concessions you agree to along the way. The exact figure depends on your price, your title company, and the terms you negotiate. Alejandro can put together a net sheet before you list so you know what you will walk away with.
Do you help sellers as well as buyers?
Yes. Alejandro works with sellers across the San Gabriel Valley, Los Angeles County, San Bernardino County, and Riverside County. He helps with pricing based on recent comparable sales, pre-listing preparation, marketing to the right buyers, offer negotiation, and a smooth path through inspections, appraisal, and the closing table, all in English or Spanish.
What should I fix before selling my home?
Focus on what an appraiser and a buyer's inspector will look at: roof condition, heating and cooling systems, plumbing and electrical, water damage, and any safety issues. After that, deep cleaning, decluttering, and fresh paint do more for most homes than big renovations. Ask your agent to walk through before you spend any money; some repairs are better handled as negotiated credits with the buyer than paid for upfront.
Working with Alejandro
Do you help Spanish-speaking buyers and sellers?
Absolutely. Alejandro is fluent in English and Spanish and is happy to run the entire process in whichever language feels most comfortable, from the first call to the closing table. That means straight talk and clear explanations either way, which matters most when the paperwork gets detailed.
What areas does Alejandro serve?
Alejandro works across Los Angeles County, San Bernardino County, Riverside County, and the San Gabriel Valley, with Pasadena and the surrounding Valley as home base. If you are buying, selling, or investing anywhere in that range, reach out and he will tell you straight whether he is the right fit for your area.
A few honest notes: every answer above is a starting point, not a promise. Loan terms, rates, and program eligibility come from the lender and depend on your income, credit, and the home itself, so always check the real numbers with a lender on the day you plan to act.
Still have a question?
Every answer here depends on your situation, and the best next step is a real conversation. Text or call Alejandro Espitia at (626) 314-9170, in English or Spanish, for a personal answer.