To check home purchase qualification in San Francisco, buyers must first assess their credit score, debt-to-income ratio, and down payment savings. A minimum credit score of 620 is typically required, though higher scores secure better loan terms. Lenders evaluate debt-to-income (DTI) ratios, which should not exceed 43% for conforming loans. Buyers must also determine their down payment capacity, as San Francisco’s median home price exceeds $1.5 million, requiring at least 3% for most loans. Obtaining a mortgage pre-approval from a lender is critical, as it outlines the loan amount and terms a buyer qualifies for. Additionally, buyers should explore first-time homebuyer programs, such as the SF HomeBuyer Assistance Program, which offers grants and low-interest loans.

San Francisco’s competitive housing market necessitates thorough preparation. A 2023 report by the San Francisco Association of Realtors found that 68% of rejected homebuyers failed due to insufficient down payments or high DTI ratios. For example, a buyer with a $1.5 million home target and 3% down payment needs $45,000 upfront, excluding closing costs (averaging $30,000–$75,000). Lenders increasingly require DTI ratios below 43% (Federal Housing Finance Agency, 2023), as exceeding this threshold raises default risks. Pre-approval increases offer acceptance rates by 50% (Zillow, 2023), as sellers prioritize serious buyers. First-time buyers in SF can access up to $195,000 in grants through city programs, reducing out-of-pocket costs. Data from the California Housing Finance Agency (2023) shows that 40% of SF homebuyers use down payment assistance, highlighting its importance. Without these steps, buyers risk delays or rejection, especially in a market where inventory remains below 2 months of supply (SF Open House, 2023).