Oct 26, 2026 · By Oanh Nguyen · Broker & Loan Officer · Buying
Buying your first home here is a big step. Prices are high. The process can feel confusing. And everyone, from friends to social media, has an opinion.
Here is the good news. "High" is not the same everywhere, or for every type of home. There is a wide range of prices across the cities I serve. There are also different paths into ownership, from condos to townhomes to single-family homes.
I help first-time buyers every year. I am also a licensed loan officer, so I see both sides: the home search and the financing. In this post, I will walk you through the same steps I use with my own clients.
Step 1: Know Your Real Number First
Start with a pre-approval, not a home search app.
It is tempting to scroll listings first. But without a real number, you can fall in love with a home you can't buy. Or you can miss homes you could buy.
A pre-approval tells you three things:
- The price range a lender will support. This is based on your income, debts, credit and savings.
- The cash you need. That includes your down payment and closing costs.
- The monthly payment. The lender's maximum is not always your comfort level. That last one is your call, not the bank's.
What a lender will usually ask for
Every lender is different, but most will ask for:
- Recent pay stubs and W-2s or tax returns.
- Bank and investment statements.
- Permission to check your credit.
- Details on your debts, like car loans and student loans.
- Information on any gift funds from family.
Gather these early. It speeds everything up.
Pre-qualification vs. pre-approval
These two terms sound alike, but they are not the same.
A pre-qualification is usually a quick estimate. It is often based on what you tell the lender, without checking documents.
A pre-approval goes further. The lender reviews your documents and credit. Sellers usually take it more seriously, because it shows a lender has looked at your file.
When you are ready to make offers, you want a pre-approval.
Leave yourself breathing room
The best first home is one you can afford with room to spare. Think about savings after closing, repairs, furniture and life changes. A pre-approval is the ceiling, not the target.
Step 2: Compare by Data, Not by Reputation
Median prices vary a lot across the cities I serve. These are all-home-type medians from Redfin, through September 2026:
| City | Median sale price |
|---|---|
| Hayward | $830,604 |
| San Leandro | $849,595 |
| Castro Valley | $1,137,958 |
| Milpitas | $1,287,887 |
| San Jose | $1,349,357 |
| Fremont | $1,370,347 |
| Pleasanton | $1,496,787 |
Source: Redfin city housing market pages, data through September 2026, accessed October 26, 2026.
These are city-wide medians. They mix houses, townhomes and condos. Every city has homes above and below its median.
San Jose alone covers nine of the ZIP codes I serve: 95112, 95118, 95119, 95121, 95122, 95123, 95127, 95136 and 95148. Prices vary inside each one.
The East Bay ZIP codes I serve are 95035 (Milpitas), 94538 and 94555 (Fremont), 94544 and 94545 (Hayward), 94546 and 94552 (Castro Valley), 94578 (San Leandro), and 94566 and 94588 (Pleasanton).
So I don't tell buyers where to live. I show you every area that fits your budget and your needs. You decide.
Step 3: Consider the Home Type
For many first-time buyers, home type matters more than location for the entry price.
- Condos usually have the lowest entry price. You own the inside of your unit. The HOA handles the building and grounds.
- Townhomes often sit in the middle. Depending on how the project is set up, you may own the land under your unit.
- Single-family homes cost the most. You own the house and the land.
Statewide, C.A.R. reported a September 2026 median of $640,000 for condos and townhomes. The single-family median was $899,720. Local prices are higher, but the gap is a useful guide.
Each type has tradeoffs. Condos and townhomes often come with HOA dues. Single-family homes come with all the upkeep. I wrote a separate post comparing the three in more detail.
Step 4: Know Your Full Monthly Cost
Your monthly cost is more than your loan payment. Plan for:
- Property taxes. These usually reset based on your purchase price. I cover this in my post on property taxes.
- Homeowners insurance. Get a quote early in your search.
- HOA dues. If the home has them. They can change over time.
- Utilities and upkeep. Older homes may need more repairs.
I help buyers add these up before writing an offer. That way you compare homes on the full cost, not just the price.
Step 5: Search Wide, Then Narrow
I set first-time buyers up with a search across every ZIP code that fits their price. Then I help you narrow it down by:
- Your commute and daily routine.
- Size and layout you need.
- Monthly costs, including HOA dues and property taxes.
- The home's condition and repair needs.
Searching wide at first helps you learn the market fast. You see what your budget buys in different places and home types. Then you can make tradeoffs with real information.
Step 6: Build Your Team
Buying a home takes more than one person. Your team will often include:
- A real estate agent. To guide your search, write your offer and manage deadlines.
- A lender or loan officer. To handle your financing.
- A home inspector. To check the condition of the home.
- An escrow and title company. To hold funds and handle the transfer.
- An insurance agent. To quote and bind your homeowners policy.
You may also want a real estate attorney or a CPA for questions about title, taxes or your finances. I can share names, and you choose who to work with.
Step 7: Look Closely at Every Showing
When you tour a home, look past the staging and the paint. I have staged many homes myself, so I know how good a room can look. Here is what I ask first-time buyers to check:
- The big systems. Roof, heating, plumbing, electrical and windows. Ask about their age.
- Signs of water. Stains on ceilings, musty smells or soft spots on floors.
- The layout. Will it work for your daily life, not just today but in a few years?
- Storage and parking. These matter more than people expect.
- Noise and light. Visit at different times of day if you can.
Write notes after each showing. After a few weekends, homes start to blur together.
Step 8: Get Ready to Write a Strong Offer
The market in many of these cities is competitive. I cover the data in my post on multiple offers. For first-time buyers, being ready matters:
- Keep your pre-approval current. Update it if your finances change.
- Read disclosures early. Many homes come with seller disclosures and reports. Review them before you write an offer.
- Know your walk-away number. Decide it before the offer deadline.
- Don't make big financial changes. Avoid new loans, big purchases or job changes during your search without talking to your lender first.
Common First-Time Buyer Mistakes
These are the mistakes I see most often. All of them are avoidable.
Shopping before pre-approval. It wastes time and can lead to heartbreak.
Looking at only one area or one home type. It can shrink your choices to almost nothing.
Using all your savings. Life happens after closing. Keep a cushion.
Skipping the documents. Disclosures, inspections and HOA papers tell you what you are buying. Read them.
Waiting for the "perfect" home. Every home has tradeoffs. Focus on the things that matter most to you.
A Hypothetical Example
This example is made up to show the process. It is not based on any real client.
A buyer is pre-approved up to a set price. At first they only search single-family homes in one ZIP code. They find two listings in three months, and both are out of reach.
I help them widen the search to townhomes and condos in all the ZIP codes that fit their commute. Now they have a dozen homes a month to look at.
They compare full monthly costs, including HOA dues. They read the HOA documents on their top two choices. Then they pick the one that fits their life and budget best.
Frequently Asked Questions
How much do I need for a down payment?
It depends on the loan program and your situation. Some programs allow smaller down payments than many people expect. A lender can show you your options. I can walk you through them as a loan officer, or work with your lender.
Which city is cheapest for first-time buyers?
Among the cities I serve, Hayward and San Leandro had the lowest all-types medians through September 2026, per Redfin. But every city has a range. The right place for you depends on your budget, needs and daily life, and that choice is yours.
Should I buy a condo first?
For some buyers, a condo or townhome is a good first step. For others, a small single-family home makes more sense. Compare the full monthly cost and how you want to live.
How long does it take to buy a home?
It varies. Getting pre-approved can take days. The search can take weeks or months. Once your offer is accepted, the purchase contract sets the escrow timeline.
Do I need a real estate agent?
You are not required to have one. But the process involves contracts, disclosures, inspections and deadlines. A good agent helps you understand each step and protect your interests.
What credit score do I need?
Each loan program and lender has its own rules. If your credit needs work, a lender can tell you what to focus on before you apply.
What if I lose out on a few offers?
It happens to many buyers in a competitive market. Each offer teaches you something about pricing and terms. I review what happened with you and adjust the plan, so the next offer is stronger.
Should I wait until I can afford a bigger home?
That depends on your goals, your savings and how long you plan to stay. Some buyers start smaller and move later. Others wait. There is no single right answer. I can help you compare the tradeoffs with real numbers.
Can I buy with a family member?
Yes, many people buy with a partner, relative or friend. Talk to a real estate attorney about how to hold title, and to a lender about how both incomes count.
The Bottom Line
Your first home in the Bay Area is within reach for more people than you might think. It just takes a clear plan.
Start with a real pre-approval. Look at the data, not the reputation. Consider every home type that fits your needs. Add up the full monthly cost. Then search wide and narrow down with care.
Prices across the cities I serve ranged from about $830,000 to about $1.5 million for all home types through September 2026, per Redfin. Your own range depends on the home type and size you choose.
The best first home is one you can afford with breathing room. I am here to help you find it, one step at a time.
Sources
- Redfin housing market pages (data through September 2026, accessed October 26, 2026): https://www.redfin.com/city/8439/CA/Hayward/housing-market · https://www.redfin.com/city/17447/CA/San-Leandro/housing-market · https://www.redfin.com/city/21841/CA/Castro-Valley/housing-market · https://www.redfin.com/city/12204/CA/Milpitas/housing-market · https://www.redfin.com/city/17420/CA/San-Jose/housing-market · https://www.redfin.com/city/6671/CA/Fremont/housing-market · https://www.redfin.com/city/14986/CA/Pleasanton/housing-market
- C.A.R., "September home sales and price report," released October 19, 2026: https://www.car.org/aboutus/mediacenter/newsreleases/2026releases/sept2026sales
Ready to see your real number? Call or text me at 408-780-1188, or email onrealtygroup@gmail.com.
Oanh Nguyen · Broker & Loan Officer · On Realty Group, brokered by LPT Realty · BRE #02133991 · NMLS 2020335
Equal Housing Opportunity.
Disclaimer: This post is general information only, not legal, tax, financial or investment advice, and it is not a loan offer or commitment to lend; data comes from the public sources linked above and can change at any time.