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Financing You for A Mortgage

Your guide to getting mortgage-ready and pre-approved with a lender

From The DiResta Group, Morgan Hill Real Estate, and HI CARE BROKER

Your Path to the Keys Starts With a Strong Pre-Approval

Buying a home is a big financial decision, and the best way to make it calm and confident is to have your financing ready before you fall in love with a property. We ask every buyer we represent to get a full pre-approval from a lender first, and we share a checklist so you can gather what your lender will need and be ready for underwriting on day one.

Before we write an offer, we recommend that you:

  • Choose a reputable lender that fits your situation and can close quickly. We can share a list of lenders for you to compare; you choose.

  • Ask your chosen lender for a fully underwritten pre-approval (sometimes called a "TBD" or "to-be-determined property" credit approval). An underwriter reviews your credit, income, and assets before you find a home, so only property-related items are left once you're in contract.

  • Gather the documents lenders commonly request, using our Underwriting-Ready Loan Package Checklist.

  • Present your offer with the strength of a verified approval, which sellers and listing agents take seriously.

or Get your free credit reports

Checking your own score or credit report is a "soft" inquiry and does not lower your score. Mortgage lenders have traditionally used the "Classic FICO" versions (FICO Scores 2, 4, and 5: FICO Score 2 from Experian, FICO Score 4 from TransUnion, and FICO Score 5 from Equifax), which can differ from the score in a banking or credit-card app. Lenders selling loans to Fannie Mae and Freddie Mac may now also use VantageScore 4.0, so ask your lender which model it uses. These links are neutral resources; we have no affiliation with them and receive no compensation.

How a 10 to 14 Day Closing Can Work

A typical financed purchase closes in about 30 days. With a fully prepared file, a responsive lender, and some planning, 10 to 14 days from contract to closing is achievable, but it is aggressive, and we want to be upfront about what it takes:

  • A complete, fully underwritten file before you're in contract. Missing documents are the most common cause of delay.

  • A lender that can move fast and will confirm in writing that it can meet the timeline.

  • A rush appraisal, or an appraisal waiver if the loan qualifies. Fannie Mae calls this "value acceptance" and Freddie Mac calls it "ACE." Eligibility is decided by the lender's automated underwriting system, is limited by loan-to-value, and is not available on Fannie Mae purchases of $1,000,000 or more or on leasehold properties (common with Oahu condos). VA appraisals are assigned by VA, and turn times depend on appraiser availability.

  • Fast responses from you, usually within hours, to any lender or escrow request.

  • Federal disclosure timing. Under the TILA-RESPA Integrated Disclosure (TRID) rule, you must receive your Closing Disclosure at least three business days before you sign. That period cannot be skipped.

Cash purchases, and hard money or private loans for investment properties, can often close faster (sometimes within a few business days) because they don't involve the same consumer-loan appraisal and disclosure process.

A Realistic Day-by-Day Timeline (business days)

Timelines are estimates. Weekends, holidays, appraisal schedules, condo or HOA reviews, title issues, and underwriting conditions can extend them.

Step-by-Step: From First Conversation to Closing

  1. Intake call. We talk about your goals, timeline, budget, and any special circumstances (self-employment, VA eligibility, credit questions, gift funds, buying in a trust or LLC).

  2. Lender selection and credit authorization. You choose a lender (we can share a list to compare) and authorize the lender to pull your credit.

  3. Secure document upload. You upload your documents directly to your lender's encrypted borrower portal, never by email and never through our website.

  4. Fully underwritten pre-approval. The lender's underwriter reviews your file and issues a credit approval that lists any remaining conditions.

  5. House hunting. You shop with confidence, knowing your price range and monthly payment.

  6. Offer and contract. We submit your offer with your lender's pre-approval letter. Once it's accepted, escrow and title open immediately.

  7. Rate lock. You and your lender lock your interest rate for a period that covers your closing date.

  8. Appraisal. The lender orders a rush appraisal through its appraisal management process (or confirms an appraisal waiver if eligible).

  9. Underwriting. The underwriter reviews the property, appraisal, title, and insurance, and issues any final conditions.

  10. Clear to close. All conditions are satisfied. You receive your Closing Disclosure at least three business days before signing.

  11. Closing. You sign, the lender funds, the deed records, and the home is yours.

Down Payment by Loan Type

2026 Loan Limits for Our Markets (one-unit homes)

Sources: FHFA 2026 conforming loan limits and HUD's FHA Mortgage Limits lookup (calendar year 2026). Loans above the conforming limit are jumbo loans. Limits change every January; your lender will confirm.

Underwriting-Ready Loan Package Checklist

Gather these items before you apply with your lender. Upload them only to your lender's secure portal. Provide every page of each statement, including pages that say "intentionally left blank."

Identity and application

Income (salaried / W-2)

  • W-2s for the most recent two years.

  • Pay stubs covering the most recent 30 days, showing year-to-date earnings.

  • Personal federal tax returns for two years (all schedules), if your lender requires them.

  • Documentation of bonus, overtime, or commission history (often two years).

  • Offer letter and start date if you're starting a new job.

  • Award letters for Social Security, pension, disability, or VA benefits, if used to qualify.

Income (self-employed / business owners)

  • Two years of personal tax returns and business returns (1120, 1120-S, or 1065), all schedules.

  • K-1s for every partnership or S-corporation interest.

  • Year-to-date profit and loss statement (some lenders require it to be CPA-prepared or signed).

  • CPA letter when the lender requires one (for example, confirming the business is active or that using business funds won't hurt the business).

  • Business license or other proof the business exists.

  • For bank-statement (non-QM) loans: 12 to 24 months of personal or business bank statements.

Employment

  • Employer name, address, phone, and HR or payroll contact for the verification of employment (VOE). The lender contacts your employer directly.

  • Two-year employment history, with letters explaining any gaps.

Assets

  • Two most recent months of statements for every bank, brokerage, and retirement account you will use, all pages.

  • Large-deposit letters explaining any non-payroll deposit, with source documents.

  • Gift letter signed by the donor (amount, relationship, no repayment expected) plus proof of the donor's funds and the transfer.

  • Earnest money deposit proof (copy of the wire or check and the bank statement showing it cleared).

Credit and housing history

  • Written explanations for late payments, collections, recent credit inquiries, or address discrepancies.

  • Rental history: lease and 12 months of proof of rent payments (or a landlord verification), if requested.

  • Mortgage statements, property tax bills, insurance, and HOA statements for any property you already own. Leases for rental properties.

Legal and life events (if applicable)

  • Divorce decree and marital settlement agreement; child support or alimony orders and proof of payment or receipt.

  • Bankruptcy petition, schedules, and discharge; foreclosure or short sale documents, with explanation letters.

  • Trust documents (or certification of trust) if vesting in a trust; LLC/entity documents (articles, operating agreement, EIN letter, certificate of good standing) if vesting in an entity, which is usually allowed only on investment or business-purpose loans.

Property and transaction

  • Fully executed purchase contract with all counteroffers and addenda.

  • Homeowners insurance quote (HO-3 for houses, HO-6 for condos). Ask about flood, wildfire, and hurricane coverage as relevant in California and Hawaii.

  • HOA documents: contact information, dues, and the condo questionnaire if required.

  • Escrow and title contact information.

VA borrowers

  • Certificate of Eligibility (or DD214 so your lender can request it; active duty: statement of service).

  • VA disability award letter if you may be exempt from the VA funding fee.

Self-employed borrowers: expect the most conditions, so start early.

Today's Mortgage Rates

Rates change daily, sometimes more than once a day. We don't post rate numbers here; check these live, publicly available sources and then get a personalized quote from your lender:

Published averages assume strong credit and specific loan terms. Your rate depends on your credit, down payment, loan type, property, points, and lock period.

VA Home Loans

Thank you for your service. A VA-backed loan is one of the most valuable benefits available to Veterans, service members, and qualifying surviving spouses.

Key benefits

  • No down payment with full entitlement, as long as the price doesn't exceed the appraised value.

  • No monthly mortgage insurance.

  • No VA loan limit with full entitlement. Your lender decides how much you can borrow based on credit, income, and assets.

  • Limits on certain closing costs, and seller concessions of up to 4% of the home's reasonable value (in addition to normal closing costs).

  • No VA minimum credit score. Lenders set their own minimums, so it pays to compare.

Eligibility and your Certificate of Eligibility (COE)

VA funding fee: a one-time fee based on loan amount, down payment, and whether it's your first VA loan. You can finance it. It is waived if you receive (or are eligible for, but receive retirement or active-duty pay instead of) VA compensation for a service-connected disability, if you're a surviving spouse receiving Dependency and Indemnity Compensation, and in certain other cases, including active-duty Purple Heart recipients. Current fee charts: https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/

Entitlement: your COE shows your entitlement. With full entitlement there's no VA loan limit; with partial entitlement (for example, an active VA loan), limits and a down payment may apply. Details: https://www.va.gov/housing-assistance/home-loans/loan-limits/

Residual income: in addition to a 41% debt-to-income benchmark, VA lenders confirm you'll have enough residual income (money left each month after major expenses) for your family size and region. Strong residual income can offset a higher ratio. Regulation: https://www.ecfr.gov/current/title-38/chapter-I/part-36/subpart-B/section-36.4340

VA appraisal and Minimum Property Requirements (MPRs): VA assigns an appraiser from its fee panel (neither you nor we choose the appraiser). The home must be safe, structurally sound, and sanitary under VA's MPRs. Plan for this when buying older or "as-is" homes. VA appraisal information: https://www.benefits.va.gov/homeloans/appraiser.asp

VA home loan overview: https://www.va.gov/housing-assistance/home-loans/

Hard Money and Private Money Loans (Investment Property)

Hard money and private loans are short-term, business-purpose loans secured mainly by the property's value. They're generally not used for a home you'll live in.

When they fit

  • Fix-and-flip and renovation projects.

  • Bridge financing (buying before selling, or until you can refinance into long-term financing).

  • Very fast closings or properties that don't qualify for conventional financing because of their condition.

  • Investors who are self-employed, have complex income, or own multiple properties (often paired with a later DSCR rental refinance).

What private lenders typically ask for

  • Loan application and credit authorization.

  • Purchase contract.

  • Scope of work and rehab budget (line-item).

  • After-repair value (ARV) support (appraisal or broker opinion of value ordered by the lender).

  • Entity documents (LLC articles, operating agreement, EIN, good standing). Many lenders lend only to entities.

  • Experience / real estate owned (REO) schedule listing past flips and rentals.

  • Bank statements showing down payment, rehab reserves, and closing funds.

  • Proof of insurance (builder's risk or vacant property coverage, as applicable).

Typical terms (typical ranges only, not quotes; every lender and deal differs)

  • Terms of about 6 to 24 months, often interest-only.

  • Higher interest rates and origination points than conventional mortgages.

  • Leverage often up to about 85% to 90% of purchase cost plus a portion or all of the rehab budget, subject to a cap based on ARV (commonly around 70% to 75% of ARV).

  • Rehab funds released in draws after inspections.

  • Many lenders advertise closings in as few as 5 business days; 2 to 4 weeks is common.

Nationally recognized private / investor lenders active in California (all verified to list California as a lending state; those marked † also list Hawaii):

Listed for convenience only. We don't endorse any lender, and we receive no compensation for referrals. Compare at least three lenders. Before you apply, confirm licensing (California lenders typically hold a California Finance Lenders license; check https://nmlsconsumeraccess.org/), current terms, and lending areas directly with the lender.

Credit Repair Pathway: A Realistic Plan

Good credit saves money on every loan. If your score isn't where you want it, here's a realistic step-by-step plan, without paying anyone to make promises they can't keep.

or Get your free credit reports

Checking your own score is a soft inquiry and won't lower it. Mortgage lenders have traditionally used FICO Scores 2, 4, and 5; lenders selling to Fannie Mae and Freddie Mac may now also use VantageScore 4.0.

  1. Pull all three reports free at AnnualCreditReport.com (the official site) and review every account, balance, and late payment.

  2. Dispute errors directly with each bureau that shows them, free of charge:

  3. Lower your credit card utilization. Pay revolving balances down to below 30% of each limit, and ideally under 10%, before the statement closing date. Don't close old accounts.

  4. Pay every bill on time from now on. Set up autopay for at least the minimums.

  5. Ask your lender about a rapid rescore. After you pay down balances or fix an error, your mortgage lender can request an expedited credit update through its credit-reporting vendor. This is a lender service, not something you order yourself.

  6. Build positive history if your file is thin: a secured credit card or a credit-builder loan from a bank or credit union, used lightly and paid in full.

  7. Send goodwill letters asking a creditor to remove an isolated late payment from an otherwise good history. There's no guarantee, but it sometimes works.

  8. Avoid new credit (cars, furniture, new cards) until after closing.

  9. Avoid credit-repair scams. Under federal law, credit repair companies can't charge you before they perform services, and no one can legally remove accurate, timely negative information. FTC guidance: https://consumer.ftc.gov/articles/fixing-your-credit-faqs

  10. Get free or low-cost help from a HUD-approved housing counselor: https://www.consumerfinance.gov/find-a-housing-counselor/ (CFPB) or https://answers.hud.gov/housingcounseling/s/?language=en_US (HUD).

Loan options for lower credit scores

  • FHA: credit scores of 580+ qualify for 3.5% down; 500 to 579 requires 10% down (HUD Handbook 4000.1). https://www.hud.gov/buying/loans

  • Conventional: Fannie Mae's automated underwriting no longer sets a fixed 620 minimum, but many lenders still look for 620+.

  • VA: no VA minimum credit score. Lenders set their own, so shop VA lenders.

  • USDA: no USDA minimum credit score; lenders apply their own standards. Eligible rural areas and income limits apply. https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

  • Non-QM (bank-statement, P&L, DSCR, or recent credit events): higher rates and down payments, but more flexible documentation.

National lenders known for lower-score FHA or non-QM lending (verified on each lender's own site; confirm current guidelines and state licensing):

Listed for convenience only; we receive no compensation. Compare at least three lenders, and verify any lender's license at https://nmlsconsumeraccess.org/.

Appraisers

An important note about appraiser independence. For conventional, FHA, and VA loans, federal Appraiser Independence Requirements and the Dodd-Frank Act's appraisal-independence rules (Regulation Z, 12 CFR 1026.42) mean neither buyers nor real estate agents may select or influence the appraiser. The lender, usually through an appraisal management company, assigns the appraiser, and VA assigns appraisers for VA loans. For financed purchases, we ask your lender to order a rush appraisal; we never choose or contact the appraiser to influence value.

The independent appraisers below are listed for other uses where you may hire an appraiser directly:

  • Private or hard money loans (when the lender accepts a borrower-ordered report; always ask the lender first)

  • Pre-listing appraisals for sellers

  • Estate, trust, probate, and date-of-death valuations

  • Divorce and family-law valuations

  • Second opinions and property tax appeals

Santa Clara County / Morgan Hill / South Bay

Oahu / Hawaii

Credentials were confirmed as "Active" in the Appraisal Subcommittee's National Registry (https://www.asc.gov/appraiser) on October 8, 2026. Listings are for convenience only. We don't endorse any appraiser or receive compensation, and you should confirm current licensing, fees, and turnaround directly.

Protecting You From Scams, Fraud & Cyberattacks

Real estate transactions are a top target for online criminals. Here's how we protect you, and how you can protect yourself.

WIRE FRAUD WARNING

We and our agents will NEVER send or change wiring instructions by email or text. Treat any email or text about new or changed wiring instructions as fraud until you confirm it by phone with your escrow or title officer.

Before you wire any money, call your escrow or title officer at a phone number you've verified independently (from your signed escrow instructions or the company's official website, never from an email), and confirm the instructions out loud.

If you receive any message saying wiring instructions have changed, stop. Don't wire. Call your escrow officer and Trevor DiResta at +1.408.710.9082 immediately.

If you think you've wired funds to a criminal, call your bank right away to request a recall, then report it at https://www.ic3.gov/.

How we handle your information

  • Our websites never collect loan documents, Social Security numbers, account numbers, or bank or tax records. There are no document-upload forms on our sites, and no form on our sites will ever ask for them.

  • We never collect your loan documents. Upload them only to your lender's secure borrower portal. We never ask you to send documents as email attachments.

  • We will never ask for your passwords, one-time verification codes, or Social Security number by text or email.

Our only official contacts and websites

Be wary of look-alike email addresses or websites (an extra letter, a different ending such as .com or .net, or a free email account). When in doubt, call us at the number above.

Simple ways to protect yourself

  • Freeze your credit with all three bureaus when you're not applying for credit. Temporarily lift the freeze before your lender pulls credit, then refreeze after closing. Freezes are free. FTC guide: https://consumer.ftc.gov/articles/credit-freezes-and-fraud-alerts

  • Use strong, unique passwords and turn on two-factor authentication for your email, bank, and lender portal accounts.

  • Don't use public Wi-Fi to upload documents or log in to financial accounts.

  • Shred old statements, pay stubs, and tax documents you no longer need.

  • Watch for urgency, secrecy, or last-minute changes. These are classic warning signs.

How to report fraud

Plan Your Budget: Mortgage Planning Tools

Use these tools to estimate your monthly payment, see what you may be able to afford, and see which loan types might fit.

Calculator results are estimates for educational purposes only and are not a loan offer, pre-approval, or commitment to lend. Final eligibility is determined by the lender.

Ready to Start? Contact Us

contact

Ready to get started, or have a question about your situation? Reach out. We can share a list of lenders for you to compare (you choose), give you our document checklist, and help plan a realistic timeline.

Annette DiResta, CIPS | annette@thedirestagroup.realestate | +1.415.757.7115

Trevor DiResta | sold@thedirestagroup.realestate | +1.408.710.9082

Looking at investment or commercial property next? Visit www.thedirestagroupcommercial.realestate.

Please don't include account numbers, Social Security numbers, or financial documents in your message.

Important Disclosures

Annette DiResta and Trevor DiResta are licensed real estate professionals, not mortgage lenders or mortgage loan originators, and do not hold NMLS loan originator licenses. The DiResta Group, Morgan Hill Real Estate, and HI CARE BROKER do not make, arrange, broker, or approve loans, quote interest rates or loan terms, or take loan applications. This information is educational and is not a loan offer or commitment to lend. Lender and appraiser listings are for convenience; we receive no compensation for referrals (RESPA).

Loan programs, guidelines, loan limits, fees, and rates change frequently and vary by lender. Figures on this page come from official sources as of October 2026 and should be confirmed with your lender. Third-party websites are provided for convenience; we're not responsible for their content.

The DiResta Group | Morgan Hill Real Estate® | www.morganhill.realestate | www.thedirestagroup.realestate
Annette DiResta CA DRE Lic. 01266309, Hawaii RB-22722; Trevor DiResta CA DRE Lic. 02019853
HI CARE BROKER | www.hicarebroker.realestate

Equal Housing Opportunity logo

Equal Housing Opportunity. We are committed to the letter and spirit of the federal Fair Housing Act and all state and local fair housing laws.

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