Where can I learn about buying a house in California?

I'm a first time home buyer, I make a decent income (80k/year) and have been on my job 5 years. I have savings and a 401k but don't want to use it for a down payment because I believe I can earn more with investments. I'm looking at a property around $375,000. I heard about Fannie Mae and I'm pretty sure I can quallify for a good rate. My credit score is 710. If I can earn 8% on my investments wouldn't it be better to do 100% financing if I plan on keeping the house?

Your logic is sound here. Currently with Fannie Mae, you can get 100% financing around 5.875% with the proper financial profile. It sounds as if you have put some thought into this and I commend you for that. The fact that you plan on keeping your home long term makes a big difference in determining if 100% financing is a good idea, and in your case, it could be.

Assuming that the housing market rebounds and if houses started appreciating at a rate higher than what you can get on your investments (8%), then you would always have the option to pay down principal with your liquid assets. By all means look into Fannie Mae / Freddie Mac financing and don't forget about FHA with as little as 3% down. FHA will get you a hair better rate than 100% Fannie Mae so you might want to weigh the benefit of that. With 20% down and a 680 credit score (which you have) you can get even better rates. Find a licensed, BBB accredited broker and have them do a side-by-side comparison of all of the programs for you.

You can get all the information you need regarding your California purchase here. http://WeFixRates.Com Make sure to read the information section and the various articles. You can get Fannie May information here. http://wefixrates.com/Fannie_Mae__s_My_C... and for a tutorial on First Time Home Buying, visit this page and save a copy. http://wefixrates.com/Home_Loans_101.htm

I agree. Don't use your 401k as a down payment. Also, I believe only up to 10k can be taken out for a down payment without incurring penalities, and income tax.
Your credit rating and income seems realistic for what you want to buy.
As for how to learn about it, get yourself a real estate agent. They cost you nothing, since the seller pays for their commision, and will help you with all your questions.
The only think that you now need is a 10-20% down payment.