San Francisco, California Home Loans

The city of San Francisco is famous for many things, including its notoriously high cost of living. It has been constantly featured among the most expensive cities in the United States for over a decade. 

While owning a home in San Francisco is possible, most people will typically need a mortgage loan to finance the deal. At Capital Home Mortgage, we can help you secure the necessary financing to purchase your dream home in San Francisco. 

To obtain a home loan, you’ll need to have a good enough credit score, in addition to other qualification requirements. 

What’s Considered A Good Credit Score?

There is no absolute figure as the three main credit bureaus — Experian, Equifax, and Transunion — have their respective thresholds for what qualifies as a good credit score. For example, according to Experian, a good credit score starts at 700. On the other hand, Equifax and TransUnion set their threshold for good credit at 670 and 720, respectively. 

If your credit score is nowhere near these benchmarks, you might need to get the number up before applying for a home loan in San Francisco. 

What Are The Biggest Factors Affecting Your Credit Score?

Five main components make up your credit score. If you’re looking to improve your credit score, these are the main areas to focus on: 

• Payment history

Multiple missed, or late payments will drag your credit score down. Your credit payment history tells lenders if you’re the kind of borrower who makes payments on time and in full. 

An excellent way to stay on top of your credit payments is to enroll them in an autopay facility. It automates your repayments, so you don’t have to worry about missing deadlines.

• Credit Usage

It is also known as the credit utilization ratio. Basically, how much of your available credit are you utilizing every month? It gives lenders a snapshot of how often you rely on non-cash funds for your regular expenses. 

That’s why maxing out your credit limit all the time is not always a good idea. Using more than 30% of your available credit will lower your credit score. 

• The Length Of Credit History

The longer the length of your credit history, the better your credit score. Unless you have a compelling reason to close your old credit accounts, don’t be in a hurry to close them. 

• Credit mix 

There are two types of accounts shown in our credit report: (a) revolving accounts and (b) installment accounts. A good balance and mix of both accounts is a good way to boost your credit scores.

Lenders want to know if you’ve had experience with different types of credit, such as credit cards, auto loans, student loans, and so on. If you’ve only ever used any credit, taking on a new one that you can easily manage may help improve your credit health.

• Date Of Last Activity

Often referred to as the DLA or Date of Last Activity. The DLA on your credit report is updated every time one of these three things happens: (1) you made a payment, (2) you missed a payment, or (3) an increase in your loan balance.

San Francisco, California Mortgage Lender 

Capital Home Mortgage San Francisco is a full-service, direct mortgage lender. We control all the aspects of the mortgage process, from application to funding. As such, we’re able to offer quicker processing, flexible underwriting, and on-time approvals. 

At Capital Home Mortgage, we make it a point to ensure a more straightforward home loan process for our clients. We’ll work closely with you to find the right mortgage product in San Francisco that best suits your situation. 

Get Your Home Loan In San Francisco, California 

Capital Home Mortgage has got you covered, from Jumbo and Conventional loans to a wide range of government-insured home loan programs. Let us help you become a bonafide homeowner in San Francisco today. Simply call us at  (323) 767-8899 to get started with a free, no-obligation quote on your loan.