Hey there! I’m Trevor Sanders, owner of SD-Loans, and I want to personally thank you for considering us to help guide you through the home loan journey. Whether you’re dreaming of buying your first home or looking to upgrade, I know how overwhelming the mortgage world can feel. But trust me—once you understand the credit side of things, it gets a whole lot easier.
Why San Diegans Trust SD-Loans
At SD-Loans, we do more than just crunch numbers. We create customized mortgage game plans based on your unique financial picture. Our mission is to make your path to homeownership as smooth and stress-free as possible. And yes, that starts with understanding your credit score.
Understanding Credit Scores – The Key to Conventional LoansWhat is a Credit Score?
Think of your credit score as your financial report card. It tells lenders how trustworthy you are when it comes to borrowing money. Most scores range from 300 to 850. The higher your score, the better your chances of loan approval—and locking in a great interest rate.
Why Your Score Matters More Than You Think
A good credit score doesn’t just unlock access to conventional loans—it can also save you tens of thousands of dollars over the life of your mortgage. That’s no exaggeration. Just a 1% difference in interest could mean the world to your long-term finances.
Conventional Loans vs. Other Loan Types
Unlike FHA or VA loans, conventional loans aren’t backed by the government. That means the credit requirements are a bit stricter—but you get the benefit of avoiding certain fees and mortgage insurance, especially with a solid down payment.
Minimum Credit Score Requirements in San DiegoFannie Mae and Freddie Mac Guidelines
For conventional loans, most lenders follow guidelines from Fannie Mae and Freddie Mac. The magic number? 620. That’s the typical minimum credit score needed to qualify for a conventional mortgage.
The Sweet Spot for Loan Approval
While 620 gets your foot in the door, scores of 740 or higher open the floodgates for lower interest rates and more flexible terms. If you’re anywhere between 660–720, you’re in good shape—but there’s still room to level up for better perks.
Factors That Influence Lender Flexibility
Your credit score isn’t the only thing lenders look at. If you have strong income, low debt, or a sizable down payment, that might offset a slightly lower score. It’s all about your overall financial health.
What Lenders Really Look ForBeyond the Score – Your Full Credit Profile
We pull your full credit report—not just your score. We’re looking at your payment history, how much debt you’re carrying, the length of your credit history, and your credit mix. All these details help paint a bigger picture.
Debt-to-Income Ratio (DTI) and Its Impact
Your DTI is a big one. It’s the percentage of your monthly income that goes toward debt payments. The lower, the better. We typically want to see your DTI below 43%, though we can often work with you to get there.
Employment and Income History
Lenders want stability. A consistent work history (usually two years or more) shows reliability. If you’re self-employed or freelance, don’t worry—just be ready to show documentation like tax returns and bank statements.
Tips to Improve Your Credit Score Before ApplyingPay Down Credit Card Balances
This is one of the fastest ways to boost your score. Keep your utilization under 30% of your credit limit—or better yet, under 10%.
Don’t Close Old Accounts
It might seem smart to shut down unused cards, but old accounts help build your credit history. Let them ride unless they come with high fees.
Limit Hard Inquiries
Too many credit checks in a short time can hurt your score. Avoid applying for new credit cards or loans while prepping for a mortgage.
Settle Any Late Payments or Collections
Even one late payment can damage your score. If you’ve got collections, see if you can negotiate a pay-for-delete agreement to clean it off your record.
How to Maintain a Healthy Credit Score Long-TermCreate a Budget and Stick to It
Budgeting isn’t just for saving money—it’s how you keep from falling behind on payments. Tools like Mint or YNAB can help.
Use Credit Responsibly
Don’t max out your cards. Pay in full when you can. And remember: credit is a tool, not a crutch.
Monitor Your Credit Regularly
Check your report at least once a year through AnnualCreditReport.com. Better yet, use apps that send alerts for changes to your score.
What to Do If Your Score Isn’t There YetPersonalized Mortgage Planning with SD-Loans
If your score needs some work, that’s okay! I’ll help you build a timeline that makes sense for your situation. Sometimes a few tweaks can make a major difference in just 60–90 days.
Credit Coaching and Realistic Timelines
We’ll walk through your report together, pinpoint trouble spots, and create a realistic action plan. You’re not in this alone—we’re in it together.
Get Pre-Approved – Know Where You StandThe Importance of Pre-Approval in San Diego’s Market
San Diego is competitive. Pre-approval gives you an edge when making an offer and shows sellers you’re serious.
What We Evaluate During the Pre-Approval Process
We look at your income, assets, credit, and debts. Then we give you a clear picture of your buying power—and help you set a confident game plan.
Final Thoughts from Trevor Sanders
Buying a home in San Diego is one of the most rewarding investments you’ll ever make. And it all starts with understanding your credit score. Whether you’re ready now or six months from now, I’m here to help you map out your journey and bring your homeownership goals into focus. Let’s build your future together—step by step.
Frequently Asked QuestionsWhat’s the minimum credit score for a conventional loan in California?
Generally, you need a score of at least 620 to qualify for a conventional loan in California, though better terms start around 740+.
Can I get a mortgage with a 620 credit score?
Yes, you can. But expect to pay a higher interest rate and possibly need a larger down payment compared to someone with a higher score.
How long does it take to improve a credit score?
It depends on your situation, but you can often see improvements in 30–90 days with consistent action.
What if I don’t qualify for a conventional loan?
No worries—we can explore other options like FHA loans, or help you improve your profile for a future conventional loan.
Is it worth paying down debt before applying for a loan?
Absolutely. Lowering your credit utilization can increase your score and improve your loan terms.