There are often cases where people think that just getting pre-approved means their offer will definitely be accepted, which can lead to trouble. A pre-approval is merely a process to confirm your limit; it is not the same as actual loan approval, and overlooking this can cause issues right before closing. Let's go through a few key points to check in order.

As of June 2026, the median sale price in San Jose is $1,469,200, which is a decrease of 0.76% compared to the previous year (Redfin, June 2026). The average market exposure time is 15 days, similar to last year's 14 days, and homes typically sell for 2% above the asking price in 20 days, while popular listings sell for 6% above the asking price in just 9 days. The competition index is classified as somewhat competitive, scoring 50 out of 100.

The first thing to check is the validity period and conditions of the pre-approval. Even if you have received a pre-approval letter, making large purchases or changing jobs can lead to a recalculation of your conditions, which may change your loan limit. If you are targeting popular listings that sell for 6% above the asking price in just 9 days, it is essential to keep your pre-approval status up to date.

The second point is comparing lenders. Many people only accept the terms from the first lender they meet, but the CFPB recommends comparing at least three. For homes in the $1.46 million range, even a 0.25% difference in interest rates can lead to significant differences in monthly payments and total interest.

The third point is the inspection. In a competitive market where homes sell in 20 days, some buyers forgo inspection conditions when making offers. However, in the Silicon Valley area, there are older homes mixed in, leading to late discoveries of plumbing or electrical issues. Instead of completely waiving the inspection condition, it may be worth considering a compromise by shortening the inspection period.

The fourth point is closing costs. If you estimate closing costs to be around 2-5% of the sale price, a home in the $1.46 million range would require at least $29,000 to nearly $73,000. You should set aside this amount separately before pouring all your funds into the down payment.

The fifth point is property taxes. With California's basic tax rate of 1% plus local bonds, the effective tax rate often rises between 1.1% and 1.3%. For a home in the $1.46 million range, annual property taxes could be between $16,100 and $19,100, so families moving from out of state should factor this into their monthly budget in advance.

The sixth point is reserves and credit management. After receiving an accepted offer, some buyers may pour all their reserves into the down payment or make new purchases for furniture and cars, which can affect their credit status. It is safer to postpone large expenditures until after closing and to keep a few months' worth of living expenses set aside.

The seventh point is not to rush emotionally. In a market like San Jose where popular listings sell in just 9 days, it can be easy to feel anxious about neighborhoods with good school districts. However, it seems more prudent to check commuting conditions, long-term living plans, and resale potential before making a decision.

The Silicon Valley area has a significant proportion of condos and townhouses, so you often need to include HOA management fees in your budget. If you only calculate mortgage principal and property taxes while overlooking HOA costs, your actual monthly burden could be higher than expected. Therefore, it is wise to check HOA regulations and fees when viewing properties.

In neighborhoods preferred by Korean families, there are differences in school district ratings even within San Jose, so be sure to check not just the sale price but also the assigned schools. By systematically reviewing the eight items of pre-approval, lender comparison, inspection, closing costs, property taxes, HOA fees, reserves, and emotional decisions, you can help reduce mistakes. Based on my long observation, following this order can significantly alleviate urgency despite the rapid price fluctuations unique to Silicon Valley. This article is not investment or legal advice, and it is recommended to consult a professional before making any actual contracts.