Home ownership can provide a sense of security and stability that renting or living with parents or relatives just doesn’t offer.
When you own your home, you have the freedom to personalize it to reflect your individual taste and style. Owning a home is about so much than just four walls and roof — it’s about having the ability to create the life you want to lead and the peace of mind that comes with knowing that you’re in control of your own financial future.
That’s true security.
To find a mortgage that fits within your budget, we suggest learning more about the financing options from a trusted San Diego mortgage lender.
Checking Rates and Eligibility
Curious about monthly payments? When you should lock in your rate? What you can afford?
Getting a fast mortgage quote can answer all of those questions and more.
We’re here to help you figure out the numbers so you can make the best decision for yourself.
About the City of San Diego, CA
San Diego, CA is a popular tourist destination in California. Located in southeastern San Diego County, it is home to the University of California at San Diego, Balboa Park, the San Diego Zoo, Sea World, the National Museum of Dance, the Old Town, the Gaslamp Quarter, and the San Diego Padres. It is also home to the city’s cultural center, the Civic Theatre, which hosts performances by the San Diego Symphony and the Ballet San Diego.
San Diego is located about 20 miles from downtown Los Angeles. The city is bordered on the north by the Pacific Ocean and on the south by the San Ysidro Mountains. Interstate 5 runs through the middle of the city and connects San Diego to the rest of California.
Buying a Home in San Diego, CA
Are you thinking of buying a home in San Diego? You should – with an average of 284 sunny days per year, stunning beaches, and a bustling downtown, San Diego is one of the most desirable cities to live in in California.
Plus, if you’re looking for a great investment property, San Diego offers some of the best rental prices in the state.
San Diego has some of the loveliest homes in the nation, and while that may be the case, the process of applying for a loan can be a challenge in and of itself.
Some of the most common questions we get are:
- What credit score do you need to buy a house in San Diego?
- How much do I need to make to buy a house in San Diego?
- What credit score is needed to buy a house in California?
- What is the easiest way to get approved for a home loan?
Home ownership can seem like an absolute fantasy to some. To others, it’s a tangible goal that they work hard to reach within their lifetimes.
Luckily, we’re available to assist potential home buyers in making sense of the loan process. Whether you’re purchasing a home for the first time or have been through the process before, we can help bring you one step closer to becoming a homeowner.
What Are Mortgage Lenders in San Diego, CA Looking For?
As a mortgage lender, we consider a number of factors before approving a home loan.
We obviously want to make sure that you can afford your mortgage.
To do this, we take a look at your credit score, your employment history, and your earnings.
A FICO score of at least 620 is usually required for conventional loans, while a FICO score of down to 500 is usually required for FHA loans.
We also look at how much cash you have available to contribute to your down payment and closing costs.
The down payment, expressed as a percentage of the selling price, varies by loan type. Buyers who do not put down a minimum of 20% of the purchase price are often required to get private mortgage insurance (PMI).
What Documents Do I Need To Get A Mortgage in San Diego, CA?
You’ll need to gather a few things in order to process your mortgage application.
Here are a few:
- Tax returns
- W2s and/or 1099s
- Recent pay stubs
- Recent bank statements
- List of your assets, including investment and retirement accounts
- List of debts, such as car loans, credit cards, or student loans
How to Get a Mortgage in San Diego, CA?
Here are a few steps to keep in mind when getting a mortgage:
- Before you start your search for the perfect home, it’s essential to understand how much you can afford. This amount will vary depending on your income, any outstanding debts and other financial obligations.
- Finding the right mortgage rate is key; research offers from different lenders to find the ideal option for your circumstances.
- Consider the different kinds of mortgages available like a fixed-rate, adjustable-rate or government insured loan.
- You will need to have all your documents ready such as proof of earnings, employment and assets before applying. Working with a local San Diego based mortgage lender can help you navigate this complex process with ease.
Types of Loans Available in San Diego, CA
There are many different kinds of mortgage loans you can get, and they are made to meet the needs of a wide range of borrowers.
Here are some quick summaries of each type of mortgage type:
- Lower down payments: An FHA loan requires a minimum down payment of less than 5% which makes it more accessible for homebuyers who don’t have the means to make a larger down payment.
- Easier credit standards: FHA loans are also easier to qualify for than a traditional mortgage as they have less stringent credit and income requirements. This can make them a great option for those with lower credit scores or limited credit history.
- Better interest rates: FHA loans tend to come with lower interest rates than conventional mortgages – making them even more attractive to homebuyers looking to save money on their mortgage payments each month.
Learn more about FHA loans in San Diego, CA.
VA loans are mortgage loans that are guaranteed by the Department of Veterans Affairs (VA) and are available to eligible veterans, active-duty military personnel, and their surviving spouses.
Some benefits of a VA loan are:
- 100% financing – no down payment needed
- Relaxed credit requirements – fantastic option for veterans with lower credit scores or limited credit history.
- Financed VA funding fee – a percentage of the loan amount that is paid to the VA to help cover the cost of the loan program. This fee can be financed into the loan or paid in cash at closing.
Learn more about VA loans in San Diego, CA.
You’ve probably heard of USDA loans, but what are they? A USDA loan is a government-insured loan supported by the United States Department of Agriculture. These loans are designed to help lower/moderate income families purchase homes in rural areas with no down payment.
USDA loans can be used for new construction and for existing homes that meet certain criteria – including meeting certain size limits and being located in an eligible rural area. They also come with many other advantages, such as no private mortgage insurance requirement, no maximum income limit, and more lenient credit qualifications. Ultimately, USDA loans provide an affordable way to purchase a home in rural areas.
Learn more about USDA loans in San Diego, CA.
Jumbo mortgage loans are a loan that is offered by lenders, such as banks and credit unions. These types of loans are also referred to as non-conforming loans, because these loans do not conform to the underwriting standards of Fannie Mae or Freddie Mac, which are the two mortgage giants.
Jumbo mortgage loans are used when people are looking to purchase a home that costs more than conforming loan limits allow.
These loans are the best choice for buyers of more expensive homes and homeowners refinancing their existing jumbo mortgages.
Learn more about Jumbo loans in San Diego, CA.
30 Yr Fixed Mortgage
A 30-year fixed-rate mortgage has an interest rate that stays the same for the entire term of the loan. This loan type is best for homebuyers who want to stretch out repayment over a long period of time.
Some quick facts are:
- It’s the most popular type of mortgage out there
- Fixed interest rate that never change
- Longer-term loans
- Lower monthly payments
Learn more about 30-Year Fixed Rate mortgages in San Diego, CA.
15 Yr Fixed Mortgage
Are you a potential homebuyer looking for the security of having fixed monthly payments? A 15-year fixed rate mortgage could be the perfect fit. With a 15-year fixed rate mortgage, you can lock in your monthly payments and enjoy peace of mind when it comes to financing your new home.
Some of the main benefits of a 15 yr fixed rate mortgage are:
- Lower interest rates – Compared to other loan types, the fixed rate mortgage offers lower interest rates over its lifetime that can save homeowners thousands of dollars in the long run.
- Shorter loan term – The shorter term length allows borrowers to pay off their loans faster and build equity more quickly while avoiding costly fees associated with a longer loan term such as additional closing costs or higher monthly payments due to an extended duration of repayment time.
- Security & predictability – With a fixed rate mortgage, homebuyers have security in knowing what their monthly payment will be each month since it won’t fluctuate or increase throughout the life of the loan.
Learn more about 15-Year Fixed Rate mortgages in San Diego, CA.
Adjustable Rate Mortgage
Adjustable-rate mortgage loans, or ARMs, have interest rates that fluctuate over the life of the loan. The ability to provide prospective borrowers with more repayment options is contributing to the growing popularity of this type of loan because the borrower’s ability to control their payments and their monthly financial commitment varies greatly over time.
An ARM starts out with low introductory rates for a specified period. After that time has elapsed, the interest rate adjusts periodically to take advantage of changing market conditions. This can make ARMs more cost effective than fixed-rate loans for borrowers who expect interest rates to be lower in the future than they are currently.
Learn more about Adjustable Rate mortgages in San Diego, CA.
Frequently Asked Questions
How do I contact your mortgage company in San Diego, CA?
We’re available to take calls or for virtual appointments.
Feel free to give us a call at 888-670-7550.
Where is your San Diego, CA mortgage office located?
We service the area near the Balboa Theatre, but we’re fully licensed and approved to lend in the entire San Diego area.
Is buying a house better than renting?
When you purchase a home of your own, you are taking one step forward in securing the opportunity to own your very own real estate – whereas renting will never provide you with anything that you can call your own or potentially sell for a profit. Don’t wait any longer – take advantage of the chance to invest in your own home and join millions of other homeowners that are doing the same.
Is it hard to get a mortgage right now?
Obtaining a mortgage can be challenging, but it doesn’t have to be. Your credit score, income, debt-to-income ratio, and the type of loan you’re seeking will all factor into your application’s success.
The best way to increase your chances is to have a positive credit history, reliable income, and a low debt-to-income ratio. That said, there are still several options available for borrowers who don’t meet these criteria. Put simply, there’s a chance to get a mortgage regardless of your financial background.
Is it smart to put 20% down on a house?
Putting 20% or more down on a house purchase is a smart move! Not only will you save yourself from having to pay Private Mortgage Insurance, but you may also end up with a lower interest rate on your loan. Take advantage of this savvy financial decision today!