Getting approved for a home loan in San Diego–San Diego Real Estate
Any real estate agent who has been in the business longer than a day will tell you, the first step to buying a home is not going to go look at houses. The first step to buying a home is getting approved for a home loan in San Diego.
There are many reasons for this, which we’ll discuss in a minute, and there is one really important one. The most important reason getting approved for a home loan in San Diego is simply that we don’t want you to fall in love with a home that you can’t end up affording. You see, all too often, people run out and look for homes to buy, put in offers to purchase and then go through the pre approval process and find out that the home they want isn’t actually one they can afford. I know what you’re saying: “we’ve done our work, we put all our info in the online mortgage calculator.” That’s great, and the online mortgage calculator doesn’t take into consideration a few things.
One of the biggest things people flub on when they buy a home is their credit score. It’s always better than we think it is. Myself included. Second, when the credit is run, people often forget about that bill they thought fell off the radar several years ago. Guess what? It’s still there and it will rear its ugly head on your credit report.
Sow what will the lender need when it comes to approving you for a mortgage in San Diego? First they will ask you to fill out a mortgage application. This will give them permission to run your credit and take a look at your credit report. They will have a much better picture at this point. Second, they are going to ask for proof of income. That usually means your last two paycheck stubs. Second, they will ask you for bank statements, usually last two months, you’ll have to give them your tax returns. They’ll actually have you fill out a form called a 4506 which is where the government will release your returns to your lender. Yes, you must do this. No, there isn’t any way around it.
Once the lender has all your paperwork, they will give it to an underwriter. That underwriter will put it into their system and based on the info you provided will come up with a purchase price. That’s what you will be able to afford.
Once that info is obtained, we will then be able to head out and start looking at homes for you to purchase.
Also, yes, you can apply for multiple home loans with different lenders without it hurting your credit score. Credit bureaus understand that you are shopping for the best rate when it comes to buying that home.
If you’re looking to buy a home, sell a home or invest in real estate, give me a call at 619-818-2992.