The First Step to Buying a Home in San Francisco (It’s Not House Hunting)
Almost everyone starts the same way: swiping through listings late at night on Zillow, scrolling through home tour videos on social, falling for a place, then wondering what to do next. It’s the fun part, so it’s tempting. But the real first step to buying a home in San Francisco isn’t finding the house. It’s a short conversation with a lender.
I know that sounds less exciting than touring a sunny Victorian. Stay with me, because this one step makes everything after it easier, and skipping it is where most buyers lose time, leverage, and sometimes the home they wanted.
Why the lender comes first
There are three reasons why the lender comes first in your home search.
You find out what you can actually afford, which is often different from what you assumed in either direction.
In a fast market like San Francisco, sellers don’t take an offer seriously without a pre-approval attached, so without it you can’t really compete.
It turns a vague dream into a clear plan, which is honestly a relief. Most people walk away from that first conversation feeling more in control, not less.
Touring homes before you’ve done this is like shopping with no idea what’s in your account. Fun for an evening, frustrating the moment you find something you love.
So what is pre-approval, exactly?
Pre-approval is when a lender reviews your finances and tells you, in writing, how much they’re willing to lend you and on what terms. It’s more substantial than a quick online “pre-qualification” estimate, because the lender actually verifies your information.
That letter does two jobs: it gives you a real budget to shop within, and it tells sellers you’re a serious, ready buyer. In a competitive offer, that letter is part of what makes yours credible.
What a lender actually looks at
This is the part people quietly worry about, so let me take the mystery out of it. A lender is mostly looking at four things:
Your income and how stable it is.
Your credit history and score (many loan programs start around a 620 score, with stronger scores earning better rates).
Your debt compared to your income, the debt-to-income ratio, which lenders generally like to see under about 43 percent.
Your assets, meaning your down payment and reserves.
You’ll share some documents, usually proof of income, recent bank and asset statements, and ID. That’s it. You don’t need perfect numbers to start, you just need to start, because knowing where you stand is what lets you improve it.
What the first conversation is actually like
It’s lower-stakes than people expect. A good lender spends most of the first call listening: your goals, your timeline, your comfort with a monthly payment. They’ll walk you through loan options, rough numbers, and what a down payment might look like for the price range you’re considering. As of 2026, most buyers put down somewhere between 3-20%, plus roughly 2-6% for closing costs, and rates have been settling into the mid-6 percent range.
You’re not signing anything or committing to a loan. You’re getting clarity. And if your numbers aren’t quite there yet, a good lender will tell you exactly what to do over the next few months to get ready, which is genuinely valuable on its own.
Not sure who to talk to? I have a handful of lender referrals I trust completely, and between them they can work around just about any financial scenario, from straightforward W-2 income to RSUs, bonuses, self-employment, newer credit, or a mix of all of it. I’m happy to make an introduction so you start with someone good.Let’s connect you with the right lender. Send me an email to get started at Javier@JavierSF.com
What to ask a lender
A few questions that tell you a lot, fast:
How much of my income can you actually use, including bonus and RSU income?
Are there any first-time buyer, down payment assistance, or other programs I might qualify for?
What loan options fit my situation, and what would each cost monthly?
How much do I really need for down payment and closing?
What could I do to qualify for a better rate?
How fast can you turn around an approval when we find the home, since speed wins deals here.
If a lender answers these clearly and patiently, that’s a good sign. If they rush you or talk over your head, keep looking.
The bottom line
The first step to buying a home in San Francisco is a conversation, not a listing. Get pre-approved, understand your real numbers, and everything after, the touring, the offer, the negotiation, gets calmer and stronger. It’s the least glamorous step and the most important one.
Thinking about buying in San Francisco?
The best first move is a quick, no-pressure conversation. I’ll help you map out your goals and connect you with one of my trusted lender referrals, who can work around just about any financial scenario, so you start with clarity instead of guesswork.
FAQ
What is the first step to buying a house in San Francisco? Talking to a lender and getting pre-approved. Before you tour homes, a lender reviews your finances and tells you how much you can borrow and on what terms. It gives you a real budget and makes your future offers credible, which matters in a fast market like SF.
Do I need to talk to a lender before looking at homes? Yes, ideally. Touring before you’re pre-approved often leads to falling for homes outside your budget, and SF sellers generally won’t take an offer seriously without a pre-approval letter attached. Getting pre-approved first saves you time and strengthens your position.
What credit score do I need to buy a home in 2026? Many conventional loan programs start around a 620 credit score, and FHA loans can go lower (around 580 with a 3.5 percent down payment). Higher scores qualify for better interest rates. If your score isn’t there yet, a good lender will tell you how to improve it.
How much do I need for a down payment in San Francisco? It varies by loan type. Most buyers put down between 3 and 20 percent, plus roughly 2 to 6 percent for closing costs. Given SF prices, many buyers use jumbo loans, which can have different requirements. There are also programs for first-time buyers and educators worth exploring.
Can my RSUs or bonus income count toward a mortgage? Often yes, but how lenders treat stock and bonus income varies a lot. The right lender knows how to document RSUs, vesting, and bonuses so they count in your favor, which can meaningfully increase your budget. This is a big reason to start with a lender who works with tech buyers.
How do I find a good lender? Ask for a referral from an agent you trust, then interview them on how they handle your income, what loan options fit you, and how fast they can turn around an approval. I keep a short list of lender referrals I trust who can work around an array of financial scenarios, W-2, RSUs and bonuses, self-employed, newer credit, and more, and I’m glad to introduce you to the right fit