Welcome to SD-Loans – Your Trusted Mortgage Experts
My name is Trevor Sanders, and I’m the owner of SD-Loans, a mortgage broker in San Diego. I know that buying a home is a life-changing event, and I’m here to guide you every step of the way. If you think homeownership is out of reach, I want to show you that it’s possible. This step-by-step guide will help you understand the mortgage qualification process in San Diego so you can buy your dream home with confidence.
Step 1: Assess Your Financial Health
Check Your Credit Score
Your credit score plays a major role in determining your mortgage eligibility. Lenders typically require a minimum score of:
- 620+ for conventional loans
- 580+ for FHA loans (lower scores may still qualify with a higher down payment)
- No minimum for VA loans (but most lenders prefer at least 620)
If your credit score needs improvement, start by paying down debt and making on-time payments.
Manage Your Debt-to-Income (DTI) Ratio
Lenders calculate your DTI ratio by comparing your monthly debt payments to your income. The lower your DTI, the better your chances of approval. Aim for:
- 45% or lower for conventional loans
- 47% for FHA loans
- 50% maximum for some loan programs
Review Your Savings and Assets
Most home loans require a down payment and closing costs. Make sure you have:
- At least 3-5% for conventional loans
- 3.5% for FHA loans
- 0% for VA loans (if eligible)
Step 2: Determine How Much You Can Afford
Calculate Your Budget
Consider your monthly mortgage payment, which includes:
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- Principal & Interest
- Property Taxes
- Homeowners Insurance
- HOA fees (if applicable)
- Mello Roos (if applicable)
Understand Loan Limits in San Diego
In 2025, the high balance loan limit in San Diego County is $1,077,550 for a single-family home. Loans above this amount require jumbo financing.
Related post: How to Get a Mortgage While Self-Employed in San Diego
Get Pre-Qualified vs. Pre-Approved
- Pre-qualification: An estimate based on basic financial info.
- Pre-approval: A formal approval process with your credit being requested shows sellers you’re a serious buyer
Step 3: Choose the Right Mortgage Type
There are several mortgage options available:
- Conventional Loans – Best for buyers with strong credit and stable income.
- FHA Loans – Ideal for first-time buyers with lower credit scores.
- VA Loans – Available for military service members with 0% down payment.
- Jumbo Loans – For high-priced homes exceeding conforming loan limits.
Related post: Breaking Down Mortgage Types in San Diego: Fixed, Adjustable, and More
Step 4: Gather Required Documentation
When applying for a mortgage, lenders will ask for:
✅ Proof of income (W-2s, pay stubs, tax returns)
✅ Bank statements & asset documentation
✅ Employment verification
Step 5: Apply for Pre-Approval
Pre-approval is a critical step because it shows sellers that you’re financially qualified. At SD-Loans, we make this process fast and easy with our online application system.
Step 6: Find Your Dream Home
Partner with a knowledgeable real estate agent to navigate San Diego’s competitive housing market.
Step 7: Open Escrow and Begin Loan Processing
After your offer is accepted, you’ll need to:
- Deposit earnest money to open escrow
- Schedule a home appraisal and inspection
Step 8: Loan Processing and Underwriting
Your loan goes through underwriting, where the lender verifies your financial details. Avoid making large purchases or changing jobs during this time.
Step 9: Loan Approval and Closing Process
Once your loan is approved, the lender will clear any final conditions before scheduling a closing date.
Step 10: Closing Day – Getting the Keys!
At closing, you’ll:
✅ Sign your final mortgage documents
✅ Pay any remaining closing costs
✅ Get the keys to your new home!
Related post: Top 5 Benefits of Working with a Mortgage Broker in San Diego
Why Work with SD-Loans?
At SD-Loans, we offer:
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- Personalized mortgage solutions tailored to your needs through our discovery call
- Competitive interest rates
- A streamlined online application process
- Amazing accessibility
- Bonus: We care about your homebuying journey!
Let’s Get Started
Don’t know where to start with your San Diego mortgage?
As a local mortgage expert, I can help you understand your options and get pre-approved quickly. Contact me today!
📞 619-855-5061
