The #1 Thing to Do Now if You Want to Buy a House in San Diego in 2022

The #1 Thing to Do Now if You Want to Buy a House in San Diego in 2022

Senior Loan Officer
Brian Decker
Published on March 4, 2022

The #1 Thing to Do Now if You Want to Buy a House in San Diego in 2022

The #1 Thing to Do Now if You Want to Buy a House in San Diego in 2022

There are several different reasons why you should buy a house in San Diego. This guide will help make the process go smoothly.

Keyword(s): buy a house in San Diego

Imagine living in a place with over 70 miles of coast, ocean access, and sunny weather nearly all year round. It sounds like a dream that could never come true, but it’s possible if you move to San Diego, California.

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San Diego is most well-known for its gorgeous weather and beaches, but it also has attractions like the San Diego Zoo and its craft beer industry.

If you want to buy a house in San Diego and move there, there are a few things you need to figure out. Does the San Diego lifestyle match up with how you live your life? And what are the best places in San Diego?

Talking to a professional should be the first step before moving to San Diego. Here’s how they can help you avoid some common mistakes and sort out your moving checklist.

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Get a Plan from a Professional

Before looking into all the best places in San Diego you want to visit when you move there, you need to make sure you have a solid plan. Many people hold off on calling a mortgage lender until the last minute only to find out that they still have much work to do before putting in a loan application. This can often result in your plans getting pushed back another six months or so.

You want to reach out to a professional for help so they can point out any red flags and help put you on the right plan for your situation. They can also help validate the method you’ve come up with, so you can make sure your timeline is accurate.

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You can talk to a mortgage lender before applying to get their advice. Whether they charge or not depends on their services. Alternatively, you can speak to a financial advisor who should also know how to get your finances in order.

Common Mistakes

Buying a house can prove a complex process for many people. It’s not uncommon for someone to skim over specific details to try and rush it. However, you can easily find yourself falling prey to several common mistakes.

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For example, you may perform unnecessary steps that negatively impact your credit history and application. It’s important to ask as many questions as possible along the way.

If you get a second job to make more money, it won’t apply to your loan unless you’ve worked there for over two years. Paying off your car first seems like a good investment, but it closes the tradeline and can drop your credit score.

Some people also know that you can put off filing your taxes, so the lender won’t see the loss. However, one of the things they ask to see is profit and loss.

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Even if everything looks great on paper and the lender automatically approves you, it doesn’t mean they can’t revoke that approval. Moving to another city or state without a job can get denied. Always make sure you have something lined up in advance.

Moving Checklist

There are multiple steps involved before you buy a house in San Diego. For the most part, they include getting your finances in order and making sure the home you’re buying is in good condition. You also need to find a mortgage company and a real estate agent that can work with your budget.

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Finances and Down Payment

Before living in San Diego:

  1. Make sure you can afford the costs.
  2. Take your income, any debts you have, and the down payment amount.
  3. Remember that a good credit score will help earn you a lower mortgage interest rate.

As for your down payment, how much you pay will depend on your savings. You can opt for a smaller down payment, but you’ll also have to pay mortgage insurance. The minimum amount can also change with different types of home loans.

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Find a Mortgage and Get Preapproved

The qualifications for a mortgage depending on the type you choose.

Conventional loans you can put just 5% down and buy up to a $900,000 home in San Diego County. FHA loans allow you to put just 3.5% down to buy a home over $850,000.

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The Department of Veterans Affairs offers purchase loans that don’t require a down payment. So if you have been in the military or are currently active in the military you can finance 100% of the homes purchase up to $1,500,000. This is obviously based on being able to show enough income to qualify for the payment of course.

Find a Real Estate Agent

You want to find a realtor agent that has a large amount of active listings. As who controls the inventory controls the market, and that is who you want on your side. If you need a referral for a great realtor in San Diego, contact Brian Decker, the top mortgage lender in San Diego. He can give you an unbiased list of the top realtors to work with in the area. Contact decker@modernteam.com or find him on Instagram at @thebriandecker.

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Get the Mortgage

Qualifying for a mortgage is easier than ever. Today's smart mortgage applications used by Modern Lending can get your Pre Approved in minutes. You will just want to have a few documents on hand.

  • Gather up your past two years of W-2 forms.
  • Pay stubs from the past month
  • A recent bank statement where you deposit your income

If you are self employed there are mortgage programs that can help you qualify with using bank statements to prove your income versus providing your tax returns. As we all know anyone that is self employed tries to mitigate any income tax liability when they can.

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Get Homeowner’s Insurance

Homeowners insurance is actually very affordable and your lender can give you some referrals. Homeowners insurance in most cases is less than your car insurance monthly.

Have the Home Appraised

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In most cases, a home inspection happens after the seller accepts an offer. However, your lender will also want an appraisal to determine the value of the property. Expect to pay for the assessment even though the lender will choose them.  However at Modern Lending we actually cover the cost of the appraisal saving you $800 upfront.

Close on Your New Home

The lender must provide a closing disclosure at least three days before you close on your new home. Compare it with your Loan Estimate to see if any costs have changed and how much total cash you’ll need.

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Buy a House in San Diego Without Delay

San Diego is one of the best places to live on the West Coast and has many employment opportunities. It’s well worth moving there, especially as you move into retirement. However, it’s also one of the least affordable cities in the United States to buy a home.

If you want to buy a house in San Diego, Modern Lending can help. We provide loans with great interest rates and tools to get you started. We offer over 80 different mortgage programs all at wholesale rates savings you thousands over your local retail bank or broker.  Contact us to learn more about our variety of loan options or just to get some questions answered.

Follow me on Instagram and Facebook @thebriandecker for more expert tips if you found this article insightful.

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Senior Loan Officer
Brian Decker Senior Loan Officer
Click to Call or Text:
844-4-Modern

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