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How to Qualify for a Mortgage in San Diego: Step-by-Step Guide

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:

    • 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.

Find Your Dream Home

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:

    • 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! 

 

Trevor Sanders -San Diego mortgage brokerLet’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!

📧 [email protected] 📞 619-855-5061