If your current rent is around $2,650 per month (the average rent in Burbank as of June 2026 according to Zumper), you might wonder how much of a difference it would make to buy a home instead. The Burbank housing value index compiled by Zillow is $1,097,431, which is down 4.7% from a year ago. If you put 20% down and calculate with a 30-year fixed mortgage at a 6.6% interest rate, the principal and interest alone would be around $5,600 per month, and when you add property taxes, the monthly burden exceeds $6,200.

So, is renting always the better option? Not necessarily. While rent is money that disappears each month, the principal portion of your mortgage builds your asset, and the longer you stay, the greater the difference becomes. However, since the calculated monthly burden difference is significant, if your stay is short or if you might move in the future, renting may be the more realistic choice compared to buying.

You should also consider loan conditions. An FHA loan can start with a 3.5% down payment if your credit score is 580 or higher, and a 10% down payment is required for scores between 500 and 579. For a conventional loan, if you are a first-time homebuyer or have an area median income of 80% or less, you can start with as little as 3%, and typically around 5% is required. If your down payment is less than 20%, PMI (private mortgage insurance) will be added monthly, and it will be removed if you put down 20% or more.

If you want to reduce your down payment burden, you might want to look into the CalHFA MyHome Assistance Program. When used with government loans, it can provide up to 3.5% of the purchase price interest-free, and for conventional loans, up to 3% can be supported, with repayment deferred until the sale or refinancing.

The property tax rate is reported to be around 0.69% for Los Angeles County, which is slightly lower than the California average of 0.71%. However, there can be differences among properties within the county, so be sure to check the actual tax rate.

Pre-approval is the process where the lender reviews your income, debt, and credit score to determine the actual amount you can borrow. Having recent income documentation, W-2s, tax returns, and bank statements prepared in advance can make the process smoother, and the loan limit is often set as long as your DTI (debt-to-income ratio) does not exceed around 43%.

When making an offer, you typically deposit earnest money of about 1% to 3% of the purchase price, which will be applied to your down payment at closing if the contract proceeds without issues. Closing costs include items like appraisal, home inspection, title insurance, and escrow fees, and you should prepare separately for these, which usually range from 2% to 5% of the loan amount.

You should also consider insurance costs. In California, obtaining homeowners insurance can be challenging or premiums can rise significantly depending on wildfire risk areas, so it's wise to get insurance quotes in advance when selecting properties.

It's also good to distinguish between pre-qualification and pre-approval. Pre-qualification provides a rough limit without a credit check, while pre-approval is issued after document review and is much more reliable. When making an offer, you need to submit the pre-approval letter for the seller to take you seriously.

If you're considering school districts, refer to ratings from GreatSchools or Niche, but keep in mind that school boundaries change frequently, so verify the assigned schools for the address before purchasing. If you're moving from another state, it's good to consider the rent or tax standards from your previous location, as there may be aspects you could easily overlook. This article is not investment or legal advice, and you should consult a professional before finalizing any contracts.