Mortgage Checklist and Tips for Buyers

Let’s be real—buying a home is exciting, but it’s also one of the biggest financial moves you’ll ever make. And when you’re shopping in a competitive market like the San Francisco Peninsula, understanding the mortgage process is just as important as finding the right home. I work with buyers every day who are ready to start house hunting—but haven’t quite figured out their financing. If that sounds familiar, don’t worry. This guide is here to help you get financially ready to compete and win.

First things first: before you start touring homes, get your financing in order. That means getting pre-approved, not just pre-qualified. A pre-approval letter shows sellers that your offer is serious and that your lender has verified your income, assets, and credit. It can be the difference between landing your dream home and losing out to a better-prepared buyer. If you're buying in Menlo Park, Palo Alto, or surrounding areas, you’ll need to act fast—and having your mortgage prepped gives you a major advantage.

Here’s a simple mortgage readiness checklist I give to all my clients:

1. Know your credit score.
A higher score often means a better interest rate. Pull your reports early so you can correct any errors or work on improvements.

2. Gather your documents.
Lenders will need W-2s, tax returns (usually 2 years), bank statements, pay stubs, and proof of other assets. Have these ready in a digital folder.

3. Understand your debt-to-income ratio (DTI).
Lenders typically want your DTI below 43%, including your future mortgage. If you’re carrying high monthly debt, paying it down before applying can boost your approval odds.

4. Get pre-approved with a local lender.
In this market, local lenders who understand regional pricing and competition can move faster and communicate better with your agent and escrow team.

5. Know what you can really afford.
Don’t just look at the max loan you qualify for—look at the monthly payments, taxes, insurance, HOA dues, and utilities. Build a budget you feel good about living with, not just qualifying for.

6. Avoid big financial changes.
Once you’re pre-approved, avoid opening new credit cards, financing a car, or changing jobs. These moves can derail your approval or delay closing.

Remember, your mortgage is more than a loan—it’s the foundation of your entire buying experience. I always tell my clients: when your money’s in order, everything else gets easier. Negotiations go smoother. Decisions feel less stressful. And when the right home comes along, you’re ready to act—confidently.

I’ve helped buyers across the Peninsula navigate the mortgage process from start to finish, working with trusted lenders, local financing pros, and expert underwriters to ensure everything is clear and on track. Whether you're a first-time buyer or a move-up homeowner, I’ll help you align your money and your goals before you make a single offer.

Call (650) 668-1868 or email lisa.lum@cbrealty.com to schedule your buyer prep session. We’ll walk through your numbers, review lender options, and build a strategy that gets you one step closer to owning the home you’ve been dreaming about.

Let’s make sure your offer stands out—on paper, and in the market.