I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. After nearly 20 years helping Bay Area and Marin County buyers, here are the five mistakes I see most often — and exactly how to avoid every one. Call (800) 239-1103.
Mistake 1: Getting Pre-Qualified Instead of Pre-Approved
Pre-qualification is a quick estimate based on unverified information. Pre-approval requires document verification — W-2s, tax returns, bank statements, credit pull. In California’s competitive markets, listing agents routinely advise sellers to reject offers without a strong pre-approval letter. Worse, some buyers get pre-approved with a bank but haven’t been through full underwriting, only to have the loan denied 3 weeks before closing. A fully underwritten pre-approval eliminates this risk.
Mistake 2: Making Large Purchases or Job Changes Before Closing
Your lender will pull your credit and verify employment immediately before funding — sometimes within 24–48 hours of close. New car loans, furniture financing, job changes, or even new credit card applications between pre-approval and closing can change your debt-to-income ratio and kill the loan. Stay financially frozen until after keys are in hand.
Mistake 3: Not Comparing Lenders
Rate shopping within a 14-day window counts as a single credit inquiry. Yet nearly half of California borrowers don’t get a second quote. On a $900,000 loan, a 0.25% rate difference saves $1,800/year — $54,000 over a 30-year loan. A mortgage broker compares rates from dozens of lenders for you at no cost.
Mistake 4: Ignoring the True Monthly Payment
Buyers focus on the purchase price and interest rate, but the real number is PITI — principal, interest, taxes, and insurance. In Marin County, property taxes alone run 1.1–1.25% annually. On an $1.8M home, that’s $1,650–$1,875/month in taxes. Add homeowner’s insurance ($200–$400/month) and any HOA dues, and your actual monthly payment can be 25–35% higher than the principal + interest payment alone.
Mistake 5: Waiting for Rates to Drop
The California real estate market has proven that waiting for the “perfect rate” is almost always a losing strategy. When rates fall, buyer demand surges and prices rise. The right time to buy is when you’re financially ready and the home fits your life. You can always refinance — you can’t rewind a missed purchase.
Frequently Asked Questions
What’s the difference between pre-qualification and pre-approval in California?
Pre-qualification is a quick estimate based on unverified information you provide verbally or online — no documents, no credit pull, no verification. Pre-approval requires actual documents: W-2s, tax returns, bank statements, pay stubs, and a hard credit inquiry. In California’s competitive markets, sellers often reject offers accompanied by pre-qualification letters. A fully underwritten pre-approval (where an underwriter has reviewed your file before you even make an offer) is the strongest position you can be in.
How much can shopping multiple lenders actually save on a California mortgage?
On a $900,000 loan — common in the Bay Area and Marin County — a 0.25% rate difference equals about $1,800/year in savings, or $54,000 over 30 years. A 0.5% difference doubles that. Rate shopping within a 14-day window counts as a single credit inquiry under FICO’s mortgage shopping rules, so there’s no penalty for getting multiple quotes. Working with a mortgage broker like DiVita Home Finance means we compare rates across 40+ wholesale lenders on your behalf.
Should I wait for mortgage rates to drop before buying in California?
Historically, waiting for lower rates in California has backfired. When rates drop, demand surges and home prices rise — often erasing any payment savings from the lower rate. California’s housing supply constraints mean prices tend to move faster than rates. The better strategy: buy when you’re financially ready and the home fits your life, then refinance if rates improve. “Marry the home, date the rate” is a cliché because it’s proven true in California markets over and over.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
