How Much Do You Really Need to Buy a Home in Pasadena?
Listed by Tracy Do and Elias Tebache of Coldwell Banker
How much do you really need to buy a home in Pasadena?
Answer:
To buy a home in Pasadena, you typically need enough for your down payment, closing costs, inspections, and reserves. Many buyers think they need 20% down, but that isn’t always required. With the right lender and strategy, you may be able to buy with less—especially with guidance from a local expert like May Kunka.
Pasadena Is Expensive — But Buying Here May Be More Achievable Than You Think
Pasadena is one of the most desirable cities in Southern California, and home prices reflect that. Still, many buyers delay purchasing because they assume they need enormous savings to get started.
The truth is: your real upfront costs depend on your price range, loan type, and overall financial picture.
Let’s break down exactly what you need to buy a home in Pasadena—clearly and realistically.
1. Down Payment: You Don’t Always Need 20%
The biggest misconception is that you must put 20% down. While 20% can reduce your monthly payment and avoid PMI (mortgage insurance), many buyers in Pasadena purchase successfully with less.
Common down payment ranges:
3% to 5% down (some conventional programs)
10% down (very common)
15% down
20%+ down (strongest in competitive offers)
Your lender will help determine what you qualify for, but the best down payment for you depends on your goals, risk tolerance, and monthly payment comfort.
2. Closing Costs: Plan for 2–3% of the Purchase Price
Closing costs are separate from your down payment. They usually include:
Escrow fees
Title insurance
Appraisal
Lender fees
Recording fees
Prepaid taxes and insurance
Example:
If you buy a $1,200,000 home in Pasadena:
2–3% closing costs = $24,000–$36,000
This surprises many first-time buyers, so it’s important to budget for it early.
3. Inspections: Budget $1,000–$2,500
Pasadena’s housing inventory includes many older homes, so inspections are essential.
Typical inspections include:
General inspection
Termite inspection
Sewer scope
Roof evaluation (if needed)
Chimney, HVAC, foundation, or pool inspections (as needed)
Expect $1,000–$2,500 depending on the home’s age and features.
4. Property Taxes: Part of Your Monthly Cost
Property taxes in Los Angeles County are typically around 1.25% of the purchase price annually.
Example:
$1,200,000 purchase price = about $15,000/year in property taxes
That’s roughly $1,250/month added to your housing cost.
This is built into your mortgage payment if you escrow taxes and insurance.
5. Homeowners Insurance: Plan for $1,200–$2,500+ Per Year
Insurance costs depend on:
Age of the home
Replacement value
Location (fire/hillside risk)
Roof condition
Claims history
Older homes and hillside areas like Linda Vista or San Rafael Hills can have higher premiums.
6. HOA Fees (If Buying a Condo or Townhome)
If you’re buying a condo near:
Old Pasadena
Playhouse District
South Lake Avenue
…HOA dues are common and often significant.
Typical Pasadena HOA ranges:
$350–$900+ per month
Always ask:
What does it cover?
Are reserves strong?
Any upcoming special assessments?
May helps buyers review HOA documents so you know what you’re committing to.
7. Reserves: The Part Most Buyers Forget
Sellers and lenders love buyers who have reserves—money left after closing.
Many lenders want buyers to have:
2–6 months of mortgage payments in reserves
especially for higher-value homes.
Even if it’s not required, it helps you buy with confidence.
8. How Much You Really Need: Realistic Pasadena Examples
These are general estimates (and not financial advice). Actual needs vary by loan type and buyer situation, so it’s best to consult a lender.
Example A: $900,000 Condo (10% down)
Down payment: $90,000
Closing costs: $18,000–$27,000
Inspections: $800–$1,500
Reserves: recommended $10,000–$25,000
Estimated total needed: $118,800–$143,500+
Example B: $1,200,000 Single-Family Home (10% down)
Down payment: $120,000
Closing costs: $24,000–$36,000
Inspections: $1,200–$2,500
Reserves: recommended $15,000–$40,000
Estimated total needed: $160,200–$198,500+
Example C: $1,500,000 Home (20% down)
Down payment: $300,000
Closing costs: $30,000–$45,000
Inspections: $1,500–$3,000
Reserves: recommended $25,000–$60,000
Estimated total needed: $356,500–$408,000+
9. What If You Don’t Have That Much Saved Yet?
Many Pasadena buyers improve their readiness by:
Exploring 5–10% down programs
Purchasing a condo or townhome first
Considering neighborhoods like East Pasadena or Altadena
Using gifts from family (allowed under many loan programs)
Building savings while improving credit and debt ratios
May works closely with trusted local lenders who help buyers explore realistic options without pressure.
How May Kunka Helps Buyers Understand Their Real Numbers
May supports buyers by:
Connecting you with strong Pasadena lenders
Helping you estimate full monthly costs
Explaining what’s realistic for your price range
Helping you structure strong offers (even without 20% down)
Finding homes that match your financial comfort—not just your approval amount
The goal isn’t to stretch — it’s to buy smart and confidently.
Final Thoughts: Buying in Pasadena Is Possible With a Clear Plan
You don’t need to be “perfect” financially to buy a home in Pasadena.
But you do need:
A clear budget
Strong pre-approval
Understanding of total costs
A trusted local expert
With the right plan and expert guidance from May Kunka, buying in Pasadena becomes achievable and exciting.
Ready to Find Out What You Need to Buy in Pasadena?
Contact May Kunka for a buyer consultation and a personalized financial roadmap to homeownership in Pasadena.