How to Get a Mortgage in California (Step-by-Step Guide)
December 13, 2025
6 minutes
Owning a home in California is an exciting goal for many, but the mortgage process can feel complicated and overwhelming. With some of the highest home prices in the country, navigating competitive bidding wars and varying lender requirements can be a real challenge. Studies show that more than 60% of first-time homebuyers in California find the mortgage process confusing, which often leads to delays and missed opportunities. Many first-time buyers search for reliable guidance on how to get a mortgage in California as the process can feel overwhelming.
California’s housing market is also uniquely demanding. In cities like San Francisco and Los Angeles, home prices have risen by over 30% in the past five years. With affordability remaining a significant concern-only 16% of buyers can afford a median-priced home-it’s more important than ever for buyers to be well-informed about their financing options early in the process. Balancing high prices, rising interest rates, and limited inventory makes preparation key for any successful home purchase. Understanding how to get a mortgage in California early in the process helps buyers navigate these challenges with more confidence.
That’s where reAlpha Mortgage comes in. We simplify the mortgage journey by offering personalized loan solutions, competitive interest rates, and expert guidance tailored to California’s dynamic real estate market. Whether you're a first-time buyer, looking for down payment assistance, or need help navigating the pre-approval process, our team is here to ensure a seamless and stress-free experience.
What Role Does reAlpha Mortgage Play in Helping Homebuyers to Get Mortgage in California?
reAlpha Mortgage is a veteran-operated mortgage brokerage licensed in 26 U.S. states, including California. Focused on simplifying home financing, reAlpha Mortgage offers personalized service to help clients achieve their homeownership goals while building generational wealth.
Why Choose reAlpha Mortgage?
- Local Expertise: reAlpha Mortgage’s deep knowledge of California’s market ensures smooth, compliant transactions.
- Personalized Loan Matching: Loans are customized based on clients’ credit profiles, income, and goals.
- End-to-End Support: From pre-approval to closing, reAlpha Mortgage guides clients every step of the way.
- Exclusive Tools: Clients access mortgage calculators, lender comparisons, home-buying guides, and the Debt Locker app to track and manage financial documents in one place.
Get Pre-Qualified and Save Up to 1.5% at Closing with reAlpha
Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.
What is reAlpha Mortgage and What Services Does It Offer?
reAlpha Mortgage is a community-driven mortgage company that combines local expertise with modern tools. Its services include home purchase loans, refinancing options, rate comparisons, fast funding, property evaluations, and cash-out refinancing, all aimed at providing tailored solutions for diverse financial needs. This step-by-step guide explains how to get a mortgage in California efficiently and with confidence.
What Are the 7 Key Steps to Get Mortgage Approval in California?
These steps outline exactly how to get a mortgage in California, from financial preparation to closing day. Before you look at the steps, it’s helpful to know what you need to prepare to get a mortgage in California. Understanding the California housing market? Securing a mortgage is a crucial step. This guide breaks down the 7 key steps to getting a mortgage in California, helping you move closer to homeownership in the Golden State.
Step 1: Assess Your Financial Situation
Before applying for a mortgage, it’s essential to evaluate your financial health. Lenders in California will assess:
Evaluating these factors early is essential when learning how to get a mortgage in California.
- Credit Score – A minimum score of 620 is typically required for conventional loans, but FHA loans may allow scores as low as 580.
- Debt-to-Income Ratio (DTI) – Most lenders prefer a DTI below 43%, but some programs allow higher ratios.
- Savings for a Down Payment – In California’s high-cost market, a 20% down payment is ideal to avoid private mortgage insurance (PMI), but many loan programs allow as little as 3% down.
- Income and Employment Stability – Lenders will verify at least two years of stable income history.
Tip: If your credit score needs improvement, consider paying down credit card debt or correcting errors on your credit report before applying for a mortgage.
Planning to pay a lump sum later? Consider how a mortgage recast could reduce your monthly payments without refinancing. These early financial adjustments play a major role in determining how to get a mortgage in California successfully.
Step 2: Get Pre-Approved for a Mortgage
A mortgage pre-approval is crucial in California’s competitive housing market. It strengthens your position as a buyer, showing sellers you are serious and financially qualified.
How to Get Pre-Approved
- Submit financial documents (W-2s, tax returns, bank statements).
- Allow the lender to run a credit check.
- Receive a pre-approval letter, which outlines the loan amount you qualify for.
Why It Matters in California:
In hot markets like San Francisco and Orange County, homes often receive multiple offers. A strong pre-approval can give you an edge over other buyers. Pre-approval is a critical milestone in how to get a mortgage in California, especially in competitive cities.
Step 3: Understand Mortgage Options in California
California homebuyers have various mortgage options based on their financial situation:
Conventional Loans
- Best for buyers with strong credit and stable income.
- Typically requires a minimum 620 credit score.
- Down payments start at 3% for first-time buyers.
FHA Loans
- Requires a lower credit score (580+).
- Down payments as low as 3.5%.
- Ideal for first-time homebuyers.
VA Loans (For Veterans & Active Duty Military)
- No down payment required.
- No PMI.
- Competitive interest rates.
Don’t overlook VA loan-specific closing costs. Learn what to expect and how to minimize fees.
USDA Loans (For Rural Homebuyers in California)
- No down payment required.
- Available for properties in eligible rural areas.
Tip: If you're a first-time homebuyer, California offers down payment assistance programs like CalHFA (California Housing Finance Agency), which provides loans and grants to help with closing costs.
| Loan Type | Minimum Credit Score | Down Payment | PMI Required? | Best For |
|---|---|---|---|---|
| Conventional Loan | 620+ | 3% – 20% | Yes (if <20% down) | Buyers with good credit and stable income |
| FHA Loan | 580+ | 3.5% | Yes | First-time buyers or those with lower credit scores |
| VA Loan | No minimum (typically 620+) | 0% | No | Veterans and active military |
| USDA Loan | 640+ | 0% | Yes | Rural homebuyers in eligible areas |
| Jumbo Loan | 700+ | 10% – 20% | Sometimes | Buyers purchasing high-cost homes ($1M+ in CA) |
Buying a Home? Get up to 1.5% Cash Back at Closing
Get pre-approval first, then start exploring homes knowing you can receive up to 1.5% of the home price back at closing.
Step 4: Compare Mortgage Rates and Terms
Mortgage interest rates fluctuate, so it’s important to compare options before locking in a loan.
Factors Affecting California Mortgage Rates:
- Economic Trends – Federal Reserve decisions impact interest rates.
- Location-Specific Rates – Rates vary between Los Angeles, Sacramento, and rural areas.
- Loan Term – A 30-year fixed-rate mortgage offers stability, while an adjustable-rate mortgage (ARM) may start lower but fluctuate over time
| Factor | How It Affects Your Interest Rate |
|---|---|
| Credit Score | Higher scores get lower rates; lower scores may pay higher interest. |
| Down Payment | A larger down payment can secure a lower rate. |
| Loan Term | 30-year fixed rates are higher than 15-year fixed loans. |
| Loan Type | Government-backed loans (FHA, VA) may have lower rates than conventional loans. |
| Market Conditions | Economic trends and Federal Reserve policies impact mortgage rates. |
| Property Location | Rates may differ between urban, suburban, and rural areas. |
Tip: Consider working with a mortgage broker or lender who can provide personalized rate comparisons.
Step 5: Apply for a Mortgage and Submit Documentation
Once you’ve chosen your mortgage, it’s time to apply. Lenders will require:
- Tax Returns & W-2s (last two years).
- Bank Statements (last 60 days).
- Employment Verification (pay stubs or self-employment income proof).
- Credit History Review (including outstanding debts).
Proper documentation is a key part of how to get a mortgage in California efficiently
Tip: Having a co-borrower can sometimes help you qualify for a larger loan.
You’ll likely come across the mortgagee clause during paperwork-know what it means and how it protects your lender.
Step 6: Home Appraisal and Underwriting
Home Appraisal
Lenders require an appraisal to ensure the home’s market value aligns with the loan amount.
Loan Underwriting
Underwriters review your financial situation and the appraisal report before issuing a final mortgage approval.
Tip: Avoid making large purchases or opening new credit lines during underwriting, as it could impact your approval.
Step 7: Closing on Your California Home
The final step is closing, where you’ll sign documents and pay any remaining costs before you buy a Home in California.
| Closing Cost Item | Estimated Cost |
|---|---|
| Loan Origination Fee | 0.5% – 1% of loan amount |
| Appraisal Fee | $500 – $800 |
| Credit Report Fee | $30 – $50 |
| Title Insurance | $1,000 – $2,500 (varies by home price) |
| Escrow Fees | $1,500 – $3,000 |
| Property Taxes | Varies (typically 0.73% of home value) |
| Homeowners Insurance | $800 – $1,500 per year |
| Total Estimated Closing Costs | 2% – 5% of home price |
Once everything is finalized, you’ll receive the keys to your new home! Reaching this stage marks the final milestone in how to get a mortgage in California successfully.
California-Specific Homebuyer Assistance Programs
If you need help with your down payment or closing costs, consider:
- CalHFA First-Time Home Buyer Programs – Offers loans and grants for eligible buyers.
- MyHome Assistance Program – Provides up to 3% of the home price for down payment assistance.
- Golden State Finance Authority (GSFA) Platinum Program – Helps with down payments and closing costs.
Tip: Some cities, like Los Angeles and San Francisco, offer additional local assistance programs for first-time buyers.
Final Thoughts: Get Expert Mortgage Guidance
Understanding the mortgage process in New Jersey doesn’t have to be stressful. With the right preparation and a knowledgeable team by your side, you’ll be holding the keys to your new home in no time.
Contact us today for a free consultation and discover the best mortgage options for your California dream home!
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FAQs
1. What is the minimum credit score required to get a mortgage in California?
When understanding how to get a mortgage in California, credit score requirements are one of the first factors lenders evaluate. For conventional loans, a minimum credit score of 620 is typically required.
2. How can I increase my chances of getting approved for a mortgage in California?
To improve your chances, focus on boosting your credit score by paying down debt, saving for a larger down payment, and ensuring two years of stable income. Getting pre-approved by a lender can also give you an advantage in competitive markets.
3. Are there any down payment assistance programs available for first-time homebuyers in California?
Yes, California offers several programs, such as CalHFA and the MyHome Assistance Program, which provide loans and grants to help with down payments and closing costs for first-time buyers.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.