Once an offer is accepted, the next document is usually the Loan Estimate. A family looking at condos in the high $400,000s to low $500,000s in Long Beach often finds themselves crunching the numbers again after receiving this document. They may have already prepared the down payment, but with escrow fees, title insurance, appraisal fees, lender fees, and prepaid property taxes and insurance added in, the closing costs typically amount to about 3-4% of the loan amount.

Looking at the recent housing prices in Long Beach, it becomes clear why this number is significant. According to Zillow, the average home value in Long Beach is $788,693, which has decreased by 1.3% over the past year (as of June 30, 2026). If preparing a 10% down payment at this price point, the loan amount would be around $710,000, and the closing costs would generally range from $21,000 to $28,000.

First-time homebuyers should note that down payment and closing costs need to be prepared separately. FHA loans allow for a 3.5% down payment if the credit score is 580 or higher, and a 10% down payment for scores between 500 and 579 (according to FHA.com). Conventional loans can start at 3% for first-time homebuyers or those with an area median income of 80% or less, otherwise, the standard is typically around 5%. If the down payment is less than 20%, PMI (private mortgage insurance) will apply, and this cost is waived if the down payment is 20% or more (according to NerdWallet).

Credit scores directly affect interest rates. Even for the same loan amount, the interest rate varies by score range, which impacts monthly payments and total interest burden. Additionally, DTI (debt-to-income ratio) is also considered. Lenders typically calculate the sum of the principal and interest on the mortgage and existing debt payments against monthly income, often setting a cap around 43%. If this number isn't calculated beforehand and an offer is made, it may lead to a situation where the budget needs to be lowered during the approval stage.

Therefore, obtaining a pre-approval rather than just pre-qualification is the proper order. Having a pre-approval letter that verifies income, assets, and debts ensures that the offer is taken seriously and keeps the buyer within a manageable price range. The average interest rate for a 30-year fixed mortgage is around 6.6% (ranging from 6.55% to 6.72%, according to Freddie Mac PMMS as of July 2026), so it's important to remember that the interest rate at the time of pre-approval may differ from the rate at closing.

California property tax is based on Prop 13, with a basic tax assessment rate of 1%, plus any school bonds or local assessments. The statewide average effective tax rate is about 0.71% (according to propertytaxrates.org), but Long Beach, located in Los Angeles County, may have additional local assessments like Mello-Roos, which can increase the actual burden. First-time homebuyers may want to consider the CalHFA MyHome Assistance Program for down payment assistance. This program offers support in the form of a second loan of up to 3.5% of the purchase price based on FHA loan criteria, with repayment deferred until sale or refinancing (according to CalHFA). Since income requirements and completion of homebuyer education are prerequisites, it's advisable to check eligibility in advance.

Ultimately, to avoid being surprised by closing costs, it's safer to prepare down payment, closing costs, and monthly payment amounts separately before making an offer. This article is not investment or legal advice, and tax and loan conditions may vary by county and individual circumstances, so it's recommended to consult with a loan officer and accounting or legal professionals before finalizing any contracts.