Applying for a home loan is one of the most critical steps in your journey to homeownership—and one of the most misunderstood. Whether you're a first-time buyer or returning to the market, knowing how the process works (and where things can go wrong) gives you a serious advantage in San Diego’s competitive market.

Start with a Solid Preapproval
Before you tour homes, get preapproved—not just prequalified. Preapproval involves a deeper review of your income, credit, debt, and assets and gives sellers confidence that you’re a serious, capable buyer.

Bonus tip: Ask for a “property-specific preapproval letter” once you’re ready to write an offer. It shows you’ve taken an extra step and gives you an edge in a competitive situation.

Don’t Be Afraid to Get a Second Opinion
Many buyers assume their bank or a referred lender is the only option. But lenders vary widely in their fees, interest rates, service quality, and flexibility. It’s smart to compare at least two loan options side by side before locking anything in.

A second opinion could save you thousands over the life of the loan—and in some cases, make or break your ability to close.

Loan Type Matters More Than You Think
From conventional to FHA, VA, and jumbo loans, your financing choice can affect how your offer is perceived, what you pay at closing, and how much you’ll need to bring in as a down payment. Work with both your lender and real estate professional to explore the best fit for your situation.

Avoid the Big Mistakes During Escrow
Once you’re in escrow, keep your finances steady. Don’t make large purchases, switch jobs, or open new credit cards. Even small changes can throw off your debt-to-income ratio or delay underwriting approval.

Hold off on buying furniture, financing a car, or making any lifestyle changes until the keys are in your hand. This is one of the most common ways buyers accidentally sabotage their loan.

Documents You’ll Likely Need
To streamline the process, gather the following early:

• Last two years of tax returns

• W-2s or 1099s

• Recent pay stubs

• Bank and retirement account statements

• Photo ID

Organizing your paperwork in advance makes the approval process smoother and shows the lender you're ready to go.

Your Mortgage Is a Tool—Use It Wisely
It’s not just about the monthly payment. Consider how long you’ll be in the home, whether you’ll refinance later, and how this loan fits into your broader financial picture. A good lender will walk you through options that support—not strain—your long-term goals.

Buying in San Diego? Let’s Get You Ready.
Team Hanna works alongside trusted local lenders to make sure you get the best terms and a smooth path to closing. Whether you’re just starting or already preapproved, we’ll help you make smart decisions at every step. Reach out to us here to get started.