To secure a mortgage in Sacramento, first assess your credit score and save for a down payment (typically 10-20% of the home price). Obtain pre-approval from multiple lenders, compare loan types (e.g., FHA, conventional, VA), and submit a detailed application with proof of income, assets, and employment. Once underwritten, finalize the loan with a title search, appraisal, and closing documents.

Sacramento’s median home price is approximately $700,000 (2023 data from the California Association of Realtors), requiring a down payment of $70,000 to $140,000. Lenders prioritize borrowers with credit scores above 620, as those below face higher interest rates. For example, a 620 score might qualify for a 4.5% rate, while a 740+ score could secure 3.75% (Federal Housing Administration, 2023). First-time buyers often benefit from programs like the Sacramento Homebuyers Assistance Program, which offers up to $75,000 in grants. Local lenders such as Well Fargo, Credit Union of America, and Quicken Loans dominate the market due to competitive rates and specialized programs for low-to-moderate-income borrowers. The city’s median household income is $90,000, aligning with FHA loan limits of $548,250 for single-family homes. Timely submission of tax returns (last two years), pay stubs (last 30 days), and bank statements (last three months) ensures smooth underwriting. Delays in document preparation can extend closing timelines by 15-30 days, as reported by the National Association of Realtors.

This structured approach balances accessibility with financial prudence, leveraging regional programs and lender incentives to mitigate barriers in Sacramento’s housing market.