In Burbank, it's common to see buyers who focus only on the home price and down payment, only to be surprised by the closing costs later. Closing costs typically include loan origination fees, appraisal fees, title insurance, and escrow fees, and usually range from 2% to 5% of the home price. It's advisable to keep in mind that this is cash that needs to be prepared separately from the down payment.

The median home value in Burbank is $1,097,431 according to Zillow, which has decreased by 4.7% over the past year. However, based on actual transactions, there are reports of homes selling for up to $1.15 million in April of this year, indicating significant price variations depending on the neighborhood and property condition.

Based on a $1.1 million home, a 3.5% FHA loan would require approximately $38,395, while a 5% down payment would need about $54,850. Adding closing costs of $22,000 to $55,000 (2% to 5%) means the initial cash needed increases significantly. If you prepare 10%, that would be $109,700, and with 20% at $219,400, you can start without PMI, greatly reducing your monthly payment burden.

If a household struggles to prepare a sufficient down payment, negotiating with the seller to cover part of the closing costs is an option. Such negotiations are more likely to be accepted in a buyer's market, so it's wise to discuss the market conditions with your agent before making an offer.

Utilizing the MyHome Assistance program from the California Housing Finance Agency can help with both down payment and closing costs. You can receive a second loan for 3.5% (FHA loan) or 3% (conventional loan) of the lower amount between the purchase price or appraised value, which is settled when you sell or refinance the home without monthly repayments. First-time homebuyer status and completion of homebuyer education are required.

To increase approval rates, managing your credit score and DTI alongside the down payment is crucial. As of July 2026, the 30-year fixed rate is 6.59% for scores above 780, 6.66% for the 760s, 6.75% for the 740s, and 6.91% for the 700s (according to Freddie Mac PMMS), with an ideal total debt-to-income ratio of below 43% and a front-end DTI of below 28% for housing costs.

It's advisable to get pre-approved to accurately determine your budget and to organize income documentation in advance. If you take out a new loan or change jobs just before closing, your income and debt will be re-evaluated during the approval process, which could complicate matters, so be cautious during this time. Keeping a few months' worth of living expenses as reserve funds separate from closing costs can also positively impact the review process.

There are also some often-overlooked aspects. Lenders typically check for any gaps in employment history over the last two years, and if a large sum suddenly appears in your account before closing, they may require documentation to verify its source. If you receive a significant gift from family, it's wise to prepare a gift letter in advance. When choosing a loan product, don't just look at one estimate; compare rates and fees from two or three lenders to potentially lower both approval conditions and costs.

After your offer is accepted, it's also a good idea to secure a rate lock. This usually lasts between 30 to 60 days, and if closing doesn't occur within that timeframe, additional costs may apply, so it's safest to align the closing schedule accordingly.

The effective property tax rate in California averages around 0.71%, but additional school bonds or special assessments can increase the burden. If you're considering neighborhoods with high school district ratings in Burbank, refer to ratings from GreatSchools or Niche, but keep in mind that school district boundaries change frequently, so check the assigned school for the specific address before purchasing. This article is not investment or legal advice, and it's recommended to consult a professional before finalizing any contracts.